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Facts
The assessee, Shree Adinath Jain Religious Trust, applied for registration under Section 12AB of the Income-tax Act, 1961, after obtaining provisional registration. The CIT (Exemption) rejected the application citing incomplete details and non-compliance with specific information requests within the statutory timeline. The assessee contended that the non-compliance was due to the sickness of a key trustee responsible for compiling the details.
Held
The Tribunal held that the assessee was deprived of a sufficient opportunity to comply with the notice due to the trustee's illness, and that the assessee had subsequently furnished the required details. Therefore, in the interest of justice, the Tribunal restored the matter to the file of the CIT (Exemption), directing the assessee to submit the details for fresh consideration and decision on the registration under Section 12AB.
Key Issues
Whether the CIT (Exemption) was justified in rejecting the application for registration under Section 12AB due to alleged non-compliance, without adequately considering the assessee's reasons for non-compliance and principles of natural justice.
Sections Cited
Section 12AB, Rule 17A, Bombay Public Trust Act, 1950
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
Before: SHRI PRASHANT MAHARISHI, AM & SHRI ANIKESH BANERJEE, JM
filed by Shree Adinath Jain Religious 01. Trust, Mumbai against the order passed by Commissioner of Income Tax (Exemption), Mumbai [in short, ‘learned CIT (E)’] on 19th March, 2024, rejecting the application of the assessee for grant of registration under Section 12AB of the Income-tax Act, 1961 (the Act). The assessee is aggrieved and is in appeal before us.
The assessee has raised following grounds:- 02.
The learned Authorized Representative submitted a paper book 04. containing 23 pages. It was submitted that assessee’s trust was registered under the Bombay Public Trust Act, 1950 on 18th May 2023, granted Provisional Registration on 22nd May, 2023, applied for registration in from no. 10AB of the Act on 17th September, 2023. The learned CIT (E), issued notice on 26th December 2023, The learned Departmental Representative submitted that application 05. is rejected as assessee could not furnish the details required and the time limit for passing of such order of registration has expired. Therefore, the order of the learned CIT (E) is in accordance with the law.
We have carefully considered the rival contentions and perused the 06. orders of the learned CIT (E). The application of the assessee was rejected only for the reason that assessee could not file the photographs of the temple and also the explanation about the activity of the trust. The assessee was deprived of the sufficient opportunity and could not comply with the notice for the reason that Mr. lal Chand Mehta who was underlying the above issue was sick and was advised bed rest from 3rd March to 13th March. During this period, In the result, the appeal of the assessee is allowed for statistical 07. purpose.
Order pronounced in the open court on 22.07.2024.