PANDIT KALHAN SCHOLARSHIP TRUST,JAMMU vs. CIT(E), CHANDIGARH, CHANDIGARH
Facts
The assessee, Pandit Kalhan Scholarship Trust, applied for registration under sections 12A(1)(ac)(iii) and 80G of the Income Tax Act, 1961. The CIT(E) rejected the applications primarily due to non-compliance with the dissolution clause in the trust deed and alleged factual deficiencies, without granting sufficient opportunity to the assessee to submit a revised trust deed and other documents. The assessee contended that a revised trust deed addressing the dissolution clause was submitted to the SDM for registration and later furnished to the tribunal.
Held
The Tribunal found that the assessee was not given proper and reasonable opportunity to file necessary particulars, including the amended trust deed. Consequently, both appeals were remanded back to the file of the CIT(E) for fresh adjudication, with directions to grant the assessee 30 days to submit all documents and for the CIT(E) to provide a fair hearing.
Key Issues
Whether the CIT(E) was justified in rejecting the applications for registration under sections 12A(1)(ac)(iii) and 80G of the Income Tax Act, 1961, without providing adequate opportunity to the assessee to rectify deficiencies, particularly regarding the dissolution clause in the trust deed.
Sections Cited
12A(1)(ac)(iii) of the Act 1961, 12AA of Income Tax Act, 1961, 80G of the Act 1961, 12AB, Rule 34(4) of the Income tax (Appellate Tribunal) Rules, 1963
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH: AMRITSAR.
Before: SH. UDAYAN DAS GUPTA & SH. BRAJESH KUMAR SINGH
per queries raised by the ld. CIT(E) within a period of 30 days (thirty days) from the
date of the receipt of this order along with amended copies of trust deed and to fully
cooperate in the registration proceedings. The ld. CIT(E) shall allow proper and
reasonable opportunity of being heard to the assessee and shall proceed with the
application for registration afresh as per provisions of law. We have not express any
opinion on merits and all legal issue are left open. The appeal of the assessee is
allowed for statistical purposes.
ITA No. 25/ASR/2025
This appeal is filed by the assessee against rejection of approval. The
application for approval u/s 80G of the Act 1961 has been e-filed by the assessee on
28.06.2024 in Form 10 AB, which has been rejected on the ground that the
application of registration u/s 12A (1)(ac)(iii) has been rejected.
We have already remanded the matter back to the ld. CIT(E) in ITA
24/Asr/2025 and we also remand this matter back to the file of the ld. CIT(E) for
adjudication afresh. Our observation in the above appeal shall apply mutatis
mutandis to this appeal also, and we remand this appeal for fresh consideration in
I.T.A. No. 24 & 25/Asr/2025 Assessment Year.: N/A 6
Coordination with the application for registration u/s 12AB, and for disposal of the
same accordingly. This appeal is also allowed for statistical purposes.
In the result, both the appeals of the assessee bearing ITA Nos. 24 &
25/Asr/2025 are allowed for statistical purposes.
Order pronounced on 30.06.2025 at Amritsar, Punjab in accordance with Rule 34(4) of the Income tax (Appellate Tribunal) Rules, 1963.
Sd/- Sd/-
(BRAJESH KUMAR SINGH) (UDAYAN DAS GUPTA) Accountant Member Judicial Member
Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The DR, I.T.A.T.
