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Facts
The assessee, a registered charitable trust, was granted provisional registration under Section 12AB. It applied for permanent registration under Section 12AB, but the CIT(E) rejected the application due to the assessee's non-compliance with notices for clarification and additional information. The assessee challenged this rejection before the Tribunal.
Held
The Tribunal condoned the 19-day delay in filing the appeal. It set aside the CIT(E)'s order, directing the CIT(E) to reconsider the application de novo after providing the assessee with one more opportunity for hearing, in adherence to the principles of natural justice. The appeal was allowed for statistical purposes.
Key Issues
Whether the CIT(E) was justified in rejecting the application for permanent registration of a charitable trust under Section 12AB due to non-compliance, and if the assessee should be granted an additional opportunity of hearing before a final decision.
Sections Cited
12AB, 12A
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Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
सुनवाई की तारीख/Date of Hearing 05.03.2025 घोषणा की तारीख/Date of Pronouncement 06.03.2025 ORDER PER BENCH: The assessee has filed the appeal against the order of the Commissioner of Income Tax (Exemptions)(CIT(E)), Bangalore passed u/sec12AB(I)(b)(ii) of the Act.
There is a delay of 19 days in filing the appeal before the Hon’ble Tribunal and the assesse has filed the affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, we condone the delay and admit the appeal. The assessee has raised the grounds of appeal
The brief facts of the case are that, the assessee is a registered charitable trust and is undertaking charitable activities as per the registered trust deed dated 8-07-2022. The assesse was granted provisional registration under section 12AB of the Act in Form.no.10AC on 19-01-2023. Subsequently, as per the amended, provisions of section 12AB of the Act, The assessee for the purpose of permanent registration has uploaded e-application in Form. No.10AB on 20-03-2024 and since there was no proper compliance to the notices of hearing, the same was rejected by the CIT(E). Aggrieved by the CIT(E) order, the assessee has filed before the Honble Tribunal.
We have heard the Ld.DR submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for permanent registration under section 12A of the Act, whereas the CIT(E) in course of hearing proceedings has issued e-notice on the assessee through ITBA portal for certain clarifications and additional information to verify the genuineness of the activities of the trust. Since there was no proper response to the notices in spite of providing sufficient opportunities to the assessee, the CIT(E) has rejected the application. Hence we considering, the facts, circumstances and the principles of natural justice shall provide with one more opportunity of hearing to the assesse to substantiate the Fact Foundation Goa case along with evidences and information. Accordingly, we set aside the impugned order and direct the CIT(E) to denovo consider the application as per the law and we allow the grounds of appeal of the assessee for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 06.03.2025.