JASRAPUR GRAMIN VIKAS SAMITI JASRAPUR,JASRAPUR vs. CIT EXEMPTION, JAIPUR

Brief facts of this case are that the assessee filed online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 was filed on 12.01.2023. A letter/notice No. ITBA/EXM/F/EXM43/2023-24/1051901081(1) dated 06.04.2023 was issued at the e- mail/address provided in the application requiring the assessee to submit certain documents/explanations by 21.04.2023. In this connection, the assessee submitted part reply through e-mail dated 21.04.2023 which was duly examined, few discrepancies were found from that submission so made. Hence, considering the principle of natural justice, one more opportunity was provided to the assessee vide Letter No. ITBA/EXM/F/EXM43/2023-24/1054277545(1) dated 11.07.2023 as final opportunity through which date of submission was fixed as 14.07.2023. In response to the above, the assessee had submitted reply which was thoroughly examined, but not found tenable by ld. CIT(E). Since it was a limitation matter, the case was decided on 4 & 588/JPR/2023 Jasrapur Gramin Vikas Samiti vs. CIT(E) the basis of material available and filed by the assessee along with its application in Form no. 10AB. As the assessee fail to submit the proof of registration under the Rajasthan Public Trust Act, 1959, the ld. CIT(E) found that the assessee is not eligible for registration u/s 12AB of the Act.

Assessee aggrieved from the rejection of approval / recognition, preferred the present appeal on the grounds as raised here in above. Apropos to the ground so raised the ld. AR of the assessee submitted that the reasons advanced for rejection are curable and the assessee was not given sufficient opportunity of being heard before the ld. CIT(E). The ld. AR also submitted that the trust has already applied for registration under the Rajasthan Public Trust Act also and if given an opportunity the observations

Per contra, the ld. DR relied on the orders of the ld. CIT(E) and submitted that the assessee even though various opportunities were given has not submitted required details and therefore, the plea of the assessee is not maintainable.

We have heard the rival contentions and perused material available on record. The Bench noted that the ld. CIT(E) rejected the registration u/s. 12AB of the Act only on the reason that the assessee is not registered with the authority prescribed under the Rajasthan Public Trust Act, 1959. The ld. CIT(E) also noted that the assessee partly complied with the notice and balance details to be submitted by the assessee but by the time the assessee submits those details the application for registration was rejected on the ground that the assessee is not registered under the Rajasthan Public Trust Act. Thus, the bench noted that the reasons advanced by the ld. CIT(E) while rejecting the application of the assessee are curable in nature and 6 & 588/JPR/2023 Jasrapur Gramin Vikas Samiti vs. CIT(E) considering the peculiar facts of the case that the assessee has already applied for Registration as per Rajasthan Public Trust Act. Thus, considering that aspect of the matter the liberal view of the matter is required to be taken in this case as the defect pointed out are not that much serious and if given a chance the assessee is in a position to cure the defects pointed out by the ld. CIT(E). Considering this aspect of the case the Bench does not want to go into merit of the case, but it is imperative that the assessee must be provided adequate opportunity of being heard and be given a fair chance by the ld. CIT(E) to cure the defect / non submission of the certain information. In the light of this aspect of the case, the Bench feels that the assessee should be given one more chance to contest the case before the ld. CIT(E) and the assessee is directed to produce all the relevant papers concerning both the application so filed before the ld. CIT(E) to settle the dispute raised hereinabove.