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Income Tax Appellate Tribunal, AGRA BENCH “DB: AGRA
Before: SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in for AY 2024-25, arises out of the order of the Commissioner of Income Tax (Exemption), Lucknow [hereinafter referred to as ‘ld. CIT(E)’, in short] dated 26.09.2024
The assessee has raised the following grounds of appeal before us :-
1. That the learned CIT (Exemption) has erred in law and on facts in rejecting our application for registration u/s 12AB of the Income Tax Act even when the objects of the trust are charitable as provided to section 2(15) and that the activities of the trust are genuine.
2. That the learned CIT (Exemption) has erred in law and on facts to reject the application for final registration u/s 12AB without identifying any defects/specific violations u/s 12AB(4) of the Act. 3. That the learned CIT (Exemption) has erred in law and on facts to reject the application without getting any adverse inference on material/documents submitted by the appellant.
The learned CIT (Exemption) erred in both law and fact by rejecting the application based solely on presumptions and assumptions, without properly considering the nature of the expenses and the objectives. It is important to note that all payments were made through legitimate banking channels, thereby substantiating the genuineness of the activities for which the expenses were incurred.
That the learned CIT (Exemption) has erred in law and on facts in passing the rejection order without providing sufficient opportunity of being heard and thus is against the principles of natural justice. 6. That the order passed by the learned CIT (Exemption) is erroneous and arbitrary. 7. That the order passed by the learned CIT (Exemption) is bad in law and against the facts of the case. 8. That any other relief or reliefs deemed fit in the facts and circumstance of the case may be granted.”
We have heard the rival submissions and perused the materials available on record. The activities carried out by the assessee are religious and charitable in nature as per the objects enumerated in the Trust Deed. The assessee trust preferred an application seeking registration of the Trust under section 12AB of the Act on 9.3.2024 in Form No. 10AB. The Learned CIT (exemptions) sought certain details and in response to the same, the assessee filed a letter dated 12.8.2024 wherein part reply was filed by the assessee. The Learned CIT(exemptions) observed that no supporting documentary evidences have been filed related to charitable activities carried out as per the objects. In the absence of expenditure bills as supporting evidences, the Learned CIT (exemptions) concluded that the assessee trust had not even commenced its charitable activities and hence held that he cannot get satisfied about the genuineness of charitable activities, if any, carried out by the trust. Accordingly, he rejected the application filed in Form No. 10AB and denied registration under section 12AB of the Act.
The Learned AR before us placed on record the complete Trust Deed containing various objects, audited financial statements for the Assessment Years 2023-24 and 2024-25 together with its ITR, list of activities performed by the assessee trust with their proofs and expenditure bills and vouchers for Assessment Years 2023-24 and 2024-25 in the Paper Book and prayed for one more opportunity before the Learned CIT(Exemptions). Considering the same, in the interest of justice and fair play, we deem it fit and appropriate to restore this appeal to the file of Learned CIT (exemptions) who shall adjudicate the same de novo in accordance with law uninfluenced by earlier observations made in the impugned order. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with Learned CIT(exemptions) for expeditious disposal of the registration proceedings by not taking unwarranted adjournments. With these directions, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 07/02/2025.