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Facts
The assessee, Shri Jagdish Jan Kalyan Educational Trust, applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application, citing the assessee's failure to provide books of accounts and supporting vouchers. The assessee did not appear for the hearing, but the appeal was considered based on the available material.
Held
The Tribunal observed that the primary reason for rejection was the lack of documentation. Therefore, to ensure justice and fair play, the assessee should be given another opportunity to present the necessary details and explanations to the CIT(E).
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration under Section 12AA of the Income Tax Act due to the absence of supporting documents from the assessee.
Sections Cited
12A, 12AA, 13(1)(c), 13(3), 2(15)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH “DB”: AGRA
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in arises out of the order of the ld. Commissioner of Income Tax (Exemption), Lucknow [hereinafter referred to as „ld. CIT(E), in short] dated 21.07.2017.
The assessee has raised the following grounds of appeal before us:-
“1 On the facts and the circumstances of the case, the order passed by the learned CIT (E) is bad both in the eye of law and on facts.
2. On the facts and circumstances of the case, the learned CIT (E) has erred both on facts and in law in rejecting the application of the assessee for grant of registration under section 12A of the IT Act. 1961 and as per CBDT circular No. 11 of 2008 where the purpose of trust is education it will constitute charitable purpose even if incidentally it is involve in carrying out commercial activity.
3. On the facts and circumstances of the case, the learned CIT (E) has erred both on facts and in law in rejecting the application of the assessee for registration under section 12A despite the same being complete and was in compliance to the provisions of the Act.
4. On the facts and circumstances of the case, the learned CIT (E) has erred both on facts and in law in holding the aims and objects of the society not being charitable in nature.
On the facts and circumstances of the case, the learned CIT (E) has erred both on facts and in law in holding the activities conducted by the appellant trust as not being genuine, despite the appellant having brought all the material and evidence on record to prove the same.
That there is no violation of Section 13(1)(c) and no income has been applied to the benefit of persons specified in Section 13(3). 7 That CIT (E) has erred on facts and in law to hold that filing of application for grant of registration is mere attempt to secure tax benefits under the garb of charity.
That CIT(E) has erred on facts and in law to appreciate that the appellant trust is running various institutions for imparting education for B.Ed and graduate courses which are recognized by National Council for Teacher Education (A statutory body of GOI) and Dr. B.R. Ambedkar University Agra now under the new affiliated body J.S. University Shikohabad, Firozabad duly published in the Gazette of India and the objects of the trust are governed by the provisions of Section 2(15) of the Income Tax Act. 1961.”
None appeared on behalf of the assessee despite issuance of notice on several occasions. Hence we proceed to dispose of the appeal after hearing the ld DR and based on materials available on record. The only effective issue to be decided in this appeal is as to whether the ld CIT(E) was justified in rejecting the registration sought u/s 12AA of the Act in the facts and circumstances of the case. We find that assessee is a public charitable trust imparting education. The assessee filed an application in Form 10A on 19.1.2017 seekign registration u/s 12AA of the Act. The ld CIT(E) sought for various details from the assessee. Part replies were filed by the assessee before the ld CIT(E). Since the registration is primarily rejected for want of production of books of accounts with supporting vouchers by the ld CIT(E), we deem it fit and appropriate in the interest of justice and fair play, that assessee should be given one more opportunity to produce all the relevant details and explanations that were sought by the ld CIT(E). Accordingly, this appeal is restored to the file of ld CIT(E) for denovo adjudication of the registration u/s 12AA of the Act in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard. 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 06/02/2025.