M/S CALICUT CHARITABLE TRUST,CALICUT vs. COMMISSIONER OF INCOME-TAX(EXEMPTION), KOCHI
What did the Tribunal hold?
The Tribunal held that the CIT (Exemption) erred by dismissing the appeal in limine for non-prosecution instead of deciding on merits. The matter was remanded back to the CIT (Exemption) for a decision on merits after providing an opportunity of hearing.
What were the facts?
The assessee, a charitable trust, applied for final registration under Section 12AA of the Income Tax Act after obtaining provisional registration. The CIT (Exemption) rejected the application without considering the assessee's request for adjournment and subsequent non-appearance.
What were the issues?
Whether the CIT (Exemption) was justified in rejecting the application for registration without considering the merits of the case and providing a proper opportunity of hearing.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Kochi dated 04.04.2024 passed u/s. 12AA of Income Tax Act, 1961 (hereinafter "the Act").
Brief facts of the case are that the applicant is a trust formed with the object of providing education and medical relief. The Calicut Charitable Trust assessee trust obtained provisional registration u/s. 80G of the Act on 07.04.2022. in Form 10AC. Subsequently the applicant filed an application for final registration in form 10AB on 12.10.2023.
On receipt of the said application, the learned CIT (Exemption), after considering the application, called for certain clarifications and information with respect to various queries. In response the applicant requested for an adjournment. The CIT (Exemption), Kochi, without considering the request, issued a show cause notice fixing the hearing on 22.04.2024. But the applicant did not appear on the date of hearing. Therefore, the CIT (Exemption) rejected the application for final registration in form 10AB.
Being aggrieved, assessee is in appeal before the Tribunal.
When the appeal was called none appeared on behest of the assessee nor there any application for adjournment. Therefore, we proceed to dispose the appeal after hearing the learned CIT-DR.
At the outset we find that the CIT(A) dismissed the appeals in limine for non- prosecution without considering the objects of the assessee trust. It is settled position of law that the CIT(A) is bound to dispose of the issues in appeal on merits by adverting to the facts of the facts of the case and discussing the legal position governing the issue in appeal. However, in the present case the CIT (Exemption) merely dismissed the appeal in limine, contrary to the settled position of law. Therefore, we remand the matter back to the file of CIT (Exemption) with a direction to dispose of the appeals on merits in accordance with law after providing opportunity of hearing to the assessee.
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