PANDIT KALHAN SCHOLARSHIP TRUST,JAMMU vs. CIT(E), CHANDIGARH, CHANDIGARH
Facts
The assessee's applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G were rejected by the CIT(E). The rejection for 12A was based on non-compliance with the dissolution clause in the Trust Deed and perceived factual deficiencies, which subsequently led to the rejection of 80G approval. The assessee contended they had submitted a revised Trust Deed and were not granted adequate opportunity to respond to queries by the CIT(E).
Held
The Tribunal observed that a revised Trust Deed was provided to them and acknowledged that the assessee was denied reasonable opportunity by the CIT(E). Consequently, both appeals were remanded to the CIT(E) for fresh adjudication. The CIT(E) was directed to grant the assessee a 30-day window to submit documents and ensure a proper hearing, with no opinion expressed on the merits.
Key Issues
Whether the rejection of trust registration and 80G approval was justified given the submission of a revised trust deed and the alleged denial of proper opportunity to the assessee by the CIT(E).
Sections Cited
12A(1)(ac)(iii), 12AA, 80G, 12AB
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.
