KAILASH CHARITABLE TRUST ,BHAVNAGAR vs. THE CIT(EXEMPTION), AHMEDABAD

These two appeals are filed by the Assessee as against rejection orders dated 12-10-2023 and 16-10-2023 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying Registration under section 12AB and 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

The appeals are filed with a delay of 67 & 63 days before this Tribunal. The assessee explained that the impugned orders were communicated to the assessee on 12-10-2023. Since the e-mail sent to the assessee were being marked as SPAM, so the assessee Trust could not verify the exparte orders and realized the same while filing the Return of Income which has resulted in a delay of 67 & 63 days and requested to condone the bonafide mistake on the part of the assessee Trust. Ld. CIT-DR has no serious objection in condoning the delay. Thus the delay of 67 & 63 days in filing the above appeals are hereby condoned.

The brief facts of the case is that the assessee Trust was registered on 04-01-2022. The assessee Trust applied for registration u/s. 12AB and 80G(5)(vi) and got provisional registration on 25-05-2022. It is thereafter the assessee applied for regular registration in Form 10AB on 06-04-2023. The Ld. CIT(E) requested the assessee Trust to submit certain details/documents vide notice dated 11-08-2023. In response, the assessee made reply on 21-08-2023 which was considered by Ld. CIT(E) as part details, therefore vide another notice dated 05-10-2023 requested the assessee to file remaining documents. Since, there was no compliance from the assessee, the Ld. CIT(E) denied registration, since the assessee failed to file documentary evidences to enable him to satisfy about the (i) Genuineness of the activities of the trust or institution (ii) That the activities of trust or institution are in consonance with the objects of the trust or institution and (iii) That other laws material for the purpose of achieving objects are & 281/Ahd/2024 Page No 3 Kailash Charitable Trust vs. CIT(E) complied with. Thus Ld. CIT(E) cancelled the provisional registration granted to the assessee.

Aggrieved against the same, the assessee is in appeal before us. Ld. Counsel appearing for the assessee submitted in its first reply, the assessee submitted that all required details before Ld. CIT(E). Since the assessee Trust was incorporated only 04-01-2022 which is 69 days old Trust, could not file the note on activities carried out by the assessee Trust. Regarding the second notice dated 05-10- 2023 was issued to the assessee Trust and the impugned rejection order was passed on 12-10-2023 without giving sufficient opportunity to the assessee to explain its case. Therefore in the interest of justice, the assessee be given one more opportunity of hearing to explain its case for registration of the Trust u/s. 12AB and 80G of the Act.

Ld. CIT-DR appearing for the Revenue has no serious objection in restoring the matter back to the file of Ld. CIT(E) for giving one more opportunity of hearing to the assessee.

Recording the submissions of both the parties, the impugned orders passed by the Ld. CIT(E) is hereby set aside with a direction to Ld. CIT(E) to give one more opportunity of effective hearing to the assessee with adequate time to file all necessary documents and evidences and then pass orders in accordance with law.

In the result, both the appeals filed by the Assessee are allowed for statistical purposes.