SEETHABAI RAMARAO BAPAT CHARITABLE TRUST,SHIMOGA vs. CIT, BANGALORE

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ITA 1409/BANG/2015Status: DisposedITAT Bangalore04 April 20173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(Exemption) had gone beyond his powers in rejecting the application. The matter was remitted back to the CIT(Exemption) for de novo consideration after affording the assessee an opportunity of being heard.

What were the facts?

The assessee, Seethabai Ramarao Bapat Charitable Trust, applied for registration under Section 12AA of the Income-tax Act. The CIT(Exemption) rejected the application, holding that the assessee was not interested in prosecuting it.

What were the issues?

Whether the CIT(Exemption) exceeded his jurisdiction by rejecting the registration application without proper inquiry. Whether the application should be restored for de novo examination.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, BENGALURU

Before: SHRI INTURI RAMA RAO & SHRI LALIET KUMAR

For Appellant: Shri R.E.Balasubramanyam, CA
For Respondent: Shri O.T.Yadav, CIT(DR)
Hearing: 02/03/2017Pronounced: 04/04/2017

Date of hearing : 02/03/2017 Date of pronouncement : 04/04/2017 O R D E R

Per INTURI RAMA RAO, AM :

1.

This is an appeal filed by the assessee directed against the order of the CIT(Exemption), Bengaluru, dated 31/08/2015 passed u/s 12AA(1)(b)(ii) of the Income-tax Act,1961 [‘the Act’ for short] denying grant of registration to the assessee-trust under the provisions of section 12AA of the Act.

2.

The appellant raised the following grounds of appeal:

3. The appellant is a trust registered under the provisions of the Societies Registration Act. The appellant filed an application in Form 12A for registration u/s 12AA of the Act on 23/02/2015. The CIT(Exemption) held that the assessee was not interested in prosecution of the application and on this reason, the application was rejected.

4.

Being aggrieved, the assessee is before us in the present appeal. Learned AR of the assessee vehemently argued that the Page 3 of 3 CIT(Exemption) has gone beyond his power to inquire into issues which have to be considered only at the stage of assessment proceedings of the trust. Learned AR of the assessee prayed that the issue may be restored back to the file of the CIT(Exemption) for de novo examination.

5.

The learned DR has no serious objection for sending back the matter for de novo examination by the CIT(Exemption). In the circumstances, we remit the issue back to the file of the CIT(Exemption) for de novo consideration of the application after affording due opportunity of being heard to the assessee.

6.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.

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