SHREE SHANTINATHJI DERASAR NI PEDHI LIMDI,DAHOD vs. THE CIT(EXEMPTION), AHMEDABAD

The assessee has raised the following grounds of appeal:- “1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s 12AB of the Act.

The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(E) rejecting the application for registration under Section 12AB of the Act. Before us, the Counsel for the assessee submitted that firstly, the Ld. CIT(E) did not give the assessee adequate opportunity of hearing to present it’s case on merits and secondly, the final notice dated 28.12.2022 did not mention the specific details which were pending on part of the assessee. It was submitted before us that Ld. CIT(E) had given only two opportunities of hearing, vide notices dated 06.12.2022 and 28.12.2022. It was submitted that both the notices were issued within a very short interval, and accordingly, the assessee was not given adequate opportunity to present it’s case on merits. Further, it was submitted that the subsequent notice did not indicate which Shree Shantinathji Deraser Ni Pedhi Limdi vs. CIT(E) Asst. Year –N.A. - 3 - details are pending on part of the assessee and therefore, the assessee responded to the notice issued on 29.12.2022 by sending acknowledgement of the details filed in the earlier reply, so that office of Ld. CIT(E) may verify the details before giving any final show-cause notice for asking for further details specifically required for the purpose of verification of genuineness of the activities of the Assessee Trust. Accordingly, the Counsel for the assessee requested that the Trust was registered on 27.04.2006 and has been carrying on genuine activities and accordingly, requested that the matter may be set-aside to the file of CIT(E) for de-novo consideration after giving due opportunity to the assessee to present it’s case on merits, in the interest of justice.

On going through the facts of the instant case, and the submissions made before us by the Ld. Counsel for the assessee, we are of the considered view that in the interest of justice, this matter may be restored to the file of the Ld. CIT(E) for de-novo consideration after giving due opportunity of hearing to the assessee to present it’s case on merits. The assessee is also directed to promptly and diligently comply to all notices of hearing and in case there is any non-compliance on behalf of the assessee, the Ld. CIT(E) would be at liberty to pass appropriate order, on the basis of materials available on record, in accordance with law.

In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 17/01/2024