BAJRANG SEVA SADAN,KOLKATA vs. CIT(EXEMPTION) KOLKATA, KOLKATA

None appeared on behalf of assessee, however, after perusing the records, we are of the opinion that we can dispose of this appeal without the assistance of Ld. AR. So, we proceed to adjudicate the issues after hearing the Ld. DR. Brief facts of the case are that the assessee trust was created on 18.11.2015 and got registered with the Registrar of Assurances on the same date. The Trust applied for registration u/s. 12A of the Act by filing Form 10A on 08.06.2016. The Trust also applied for grant of approval u/s. 80G(5) of the Act in Form 10G (Rule 11AA) with the following documents:

The Ld. CIT(E) notes that during scrutiny of the application submitted by the applicant it has come to his notice that From 10A submitted by the assessee trust is not in the format as prescribed in the Rules, therefore, he rejected both the applications. The main grievance of the assessee trust is that the column no. 2 requiring PAN of the trust in Form 10A was inadvertently not entered in the Form 10A. However, the photo copy of the PAN of the trust was submitted in duplicate with form 10A as well as mentioned as item no. 1 in the covering letter dated 08.06.2016. So, from the grounds raised by the assessee, the contention of the assessee is that just because the PAN particulars were not filled could not have been the ground to reject the application in limini and that too without giving an opportunity to the assessee trust to rectify the mistake. Therefore, assessee’s case is that there is violation of natural justice by the act of the Ld. CIT(E). Therefore, the prayer of assessee is that one more opportunity should be granted to the assessee trust to move the application for registration u/s. 12A and approval u/s. 80G of the Act. Ld. DR supported the order of the Ld. CIT(E).

We have heard Ld. CIT, DR and gone through facts and circumstances of the case. We note that the Ld. CIT(E) vide his impugned order rejected the application of the assessee trust for registration u/s. 12A of the Act as well as approval u/s. 80G of the Act on the reason that the Form 10A is not submitted in the format as prescribed in the Rules and application u/s. 80G has been rejected because the institution is not registered u/s. 12AA of the Act. We note that the Form 10A was filed by the assessee trust along with the copy of PAN of the trust. Merely because the assessee trust has omitted to mention the Permanent Account No. of the trust in column no. 2 of Form 10A, the Ld. CIT(E) concluded that application is void ab initio without giving an opportunity to the assessee to rectify the mistake is fragile for violation of natural justice. We note that when an action which has got civil consequences is taken or any action adversely affecting the rights of the assessee is taken an opportunity of hearing has to be given to the assessee. Here, in this case, merely because the assessee has not entered the PAN details in column no. 2 of Form 10A, the application has been dismissed, which action of the Ld. CIT(E) smacks of arbitrariness and there is naked violation of natural justice. Therefore, we are inclined to set aside the order of Ld. CIT(E) and remit the application back to the file of Ld. CIT(E) to give an opportunity to the assessee to rectify the mistake, if any, and direct Ld. CIT(E) to pass orders on its applications u/s. 12A as well as 80G of the Act on merits after affording adequate opportunity to the assessee trust.

In the result, both the appeals of assessee are allowed for statistical purposes..