Loading judgment…
Facts
The assessee, Manthan Foundation Charitable Trust, filed an application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(Exemption) rejected the application, citing incomplete Form 10AB and non-genuine activities. The assessee appealed this order.
Held
The Tribunal noted that the assessee had not submitted crucial documents like the trust deed, registration certificate under the Rajasthan Public Trust Act, and relevant financial vouchers. However, considering the assessee's willingness to pursue the matter and submission of some documents, the Tribunal decided to restore the case to the CIT(Exemption) for a fresh opportunity.
Key Issues
Whether the CIT(Exemption) erred in rejecting the application for registration without providing a reasonable opportunity to the assessee and holding the submitted form as incomplete.
Sections Cited
12AB, 12AB of the Income Tax Act, 1961, Rajasthan Public Trust Act, 1959
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCH “B”, JAIPUR
Before: Dr. S. SEETHALAKSHMI & SHRI GAGAN GOYAL
PER GAGAN GOYAL, A.M: This appeal is directed against the order of the ld. CIT (Exemption) dated 17-02-2023 passed u/s. 12AB of the Income Tax Act, 1961. The assessee has raised the following grounds of appeal.
1. ‘’1. On the facts and in the circumstances of the case, the ld.CIT(E), Jaipur erred in rejecting the application filed by the appellant in Form 12AB for registration of trust u/s 12AB of Income Tax Act, without providing the reasonable opportunity to the assessee to submit its submission.
On the facts and in the circumstances of the case, the ld. CIT(E) erred in holding that the assessee has filed incomplete Form No. 10AB and holding non-genuine activities and further erred in rejecting the application merely on the ground of non-compliance made by the appellant of the notices issued by the department without providing the sufficient opportunity more so when no notice was issued by physical form. 3. The appellant prays for leave to add, to amend, to delete or modify the all or any grounds of appeal on or before the heading of appeal.’’
2. The Brief facts of the case are that the assessee filed an application in Form No. 10AB seeking registration u/s. 12AB of the Act on 09.09.2023. A notice was issued by the office of the Ld. CIT (Exem.), Jaipur vide dated: 21.12.2022 requiring applicant to submit certain documents/explanations by 05.01.2023. Notices were issued to the assessee vide dated: 10.01.2023 and 27.01.2023, but either adjournment was taken or partial information submitted, which were not up to the satisfaction of the authorities concerned. Ultimately, the order was passed on the basis of the material filed by the assessee along with its application in Form No. 10AB and vide para 5 of the order of the Ld. CIT (Exem.), vide order dated: 17.02.2023. The assessee being aggrieved with this order of the Ld. CIT (Exem.) preferred the present appeal before us.
We have gone through the order of the Ld. CIT (Exem.) and submission/arguments of the assessee along with the grounds taken before us. The assessee has taken as many as three grounds of appeal through .
4. It is observed that the assessee has not submitted relevant deed along with Form No. 10AB, registration certificate under the Rajasthan Public Trust Act, 1959 not submitted, relevant bills voucher and other documents to confirm the genuineness of the activities of the trust were also not submitted. In absence of these details certainly the action of Ld. CIT (Exem.) is justified. But as the assessee is willing to pursue the matter again and has furnished the copy of registration certificate issued by the office of the Assistant Commissioner under the Rajasthan Public Trust Act, 1959 alongwith Trust Deed and relevant financials. In the light of above, we deem it fit to restore the matter back to the file of Ld. CIT (Exem.) for another opportunity to be given to the assessee after proper hearing of the matter after examination of required documents in the matter and the assessee is directed to be cooperative enough without seeking any adjournment and timely response to the office of the Ld. CIT (Exem.). Although none of the documents furnished before us except copy of registration certificate issued by the office of the Assistant Commissioner under the Rajasthan Public Trust Act, 1959.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 11th December 2024 Sd/- Sd/- (Dr. S. SEETHALAKSHMI) (GAGAN GOYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Jaipur, िदनांक/Dated: 11/12/2024 Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. आयकर आयु� CIT 3. 4. िवभागीय �ितिनिध, आय.अपी.अिध., Sr.DR., ITAT, 5. गाड� फाइल/Guard file. BY ORDER, //True Copy//
(Asstt. Registrar) ITAT, Jaipur Details Date Initials Designation 1 Draft dictated on PC on 11.12.2024 Sr.PS/PS 2 Draft Placed before author 11.12.2024 Sr.PS/PS 3 Draft proposed & placed before the Second JM/AM Member 4 Draft discussed/approved by Second Member JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS/PS 7. File sent to the Bench Clerk Sr.PS/PS 8 Date on which the file goes to the Head clerk 9 Date of Dispatch of order