SHREE GAMARA SAMAJIK SEVA MANDAL,,SURENDRANAGAR vs. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS),, AHMEDABAD

The Assessee has raised the following grounds of appeal:

The Ld. CIT has erred in law and facts in rejecting the application made for registration u/s.12A on the irrelevant grounds. The appellant deserves registration.

The Ld. CIT has erred in law and facts in rejecting the application made for registration u/s.12A on the irrelevant considerations. The appellant deserves registration.

The Ld. CIT has erred in not granting registration without appreciating the factual and legal position that the appellant deserves registration from the first day of F.Y. in with application is made, i.e. 01.04.2014. The appellant deserves registration.

Without prejudice the Ld. CIT has erred in not providing reasonable time and adequate opportunity. The trust deserves registration.”

The assessee filed application for registration of the Trust under Section 12AA of the Income Tax Act, 1961 on 20.03.2015 in Form No.10A under Rule 11AA of the Income Tax Rules, 1962 along with registration certificate of Charity Commissioner. The assessee has furnished detailed note on the activities actually carried out by the Trust along with various documents. The CIT (Exemptions) vide order dated 29.09.2015 has rejected the application on the ground that none appeared before the CIT(Exemptions).

Being aggrieved by the said order under Section 12AA of the Act, the assessee filed appeal before us.

At the time of hearing, none appeared on behalf of the assessee but the Ld. AR of the assessee filed written submissions which are reproduced as under:-

The Ld. CIT(A) has rejected the application made by the assessee in Form 10A for approval of registration U/s. 12AA.

The only reason given by the Ld. CIT(A) is that assessee has not complied with the notice issued calling certain documents and information. At Para. 2 of his letter the Ld. CIT has reproduced details required from the assessee. It is humbly submitted that the following information amongst other Sr. No. 3

The assessee therefore humbly submitted at the time of granting primary registration it is considered by almost all Hon. Benches of 1TAT on all over India. The assessee humbly submit the following for kind consideration.

The Ld. DR submitted that the CIT(Exemptions) has given categorical finding that no documents were filed. Hence, the CIT(Exemptions) has rightly rejected the registration under Section 12AA of the Act. The Ld. DR relied upon the decision of Hon’ble Apex Court in the case of Harshit Foundation vs. CIT (Exemptions) 287 Taxman.com 394 (SC).

We have heard the ld. DR and perused all the relevant material available on record. It is pertinent to note that the CIT(Exemptions) has categorically quoted the details required on behalf of the assessee Trust but the assessee within the stipulated time could not produce the same. After going through the appeal records, it is found that there is a delay of filing the appeal before us of 568 days which was not explained by the assessee at any point of time. But, since the assessee has not been given any opportunity of hearing for placing the documents called for by the CIT (Exemptions), we are condoning the delay and direct the CIT(Exemptions) to consider the application of the assessee filed under Section 12AA of the Act after taking cognisance of the details filed before the CIT(Exemptions). Needless to say the assessee be given opportunity of hearing by following the principles of natural justice. We further direct the assessee to co-operate with the proceedings and file the relevant details within the stipulated time given by the CIT(Exemptions) otherwise the CIT(Exemptions) can decide the case according to the law.

In the result, appeal filed by the assessee is partly allowed for statistical purpose.