KARNATAK GOA PRADESH MAHESHWARI SABHA,BIJAPUR vs. CIT(EXEMPTION), BENGALURU

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ITA 1/PAN/2021Status: DisposedITAT Panaji21 August 2023Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI PARTHA SARATHI CHAUDHURY (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order and remanded the matter back for re-adjudication. The assessee was granted one final opportunity to submit the necessary documents.

What were the facts?

The assessee-trust applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application due to the assessee's failure to furnish required details, including the registered amended Memorandum of Association.

What were the issues?

Whether the rejection of the application for registration under Section 12AA was justified without providing a final opportunity to submit missing documents.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PANAJI BENCH :: PANAJI

For Respondent: Shri Badrinath Yamaji
Hearing: 17/08/2023Pronounced: 21/08/2023

This appeal preferred by the assessee emanates from the order of Commissioner of Income Tax (Exemptions), Bangalore (for short, ‘CIT(E)’), dated 17.02.2022 as per the grounds of appeal on record.

2.

The solitary grievance as evident from the grounds of appeal in the appeal memo filed by the assessee is the rejection of application for registration u/sec. 12AA of the Income Tax Act, 1961 (for short, ‘the Act’).

3.

We observe from perusal of the order passed by the ld. CIT(E) Karnataka Goa Pradesh Maheshwari Sabha that applicant-trust M/s.Karnataka Goa Pradesh Maheshwari Sabha had made an application in Form 10A for registration u/sec. 12AA of the Act before the Department. There were certain discrepancies detected during the process of this application and accordingly, the assessee-trust was asked to furnish various details as is enumerated in the order of ld.CIT(E). However, assessee-trust had failed to furnish registered amended Memorandum of Association (MoA). These details will enable the ld. CIT(E) to satisfy himself regarding the objects of the assessee-trust and the genuineness of its activities. Furthermore, whether assessee-trust is incompliance with the prevalent laws in force will also have to be verified. The only reason for rejection of application for registration by the Department was that assessee-trust had not filed these requisite details as called for by the office of ld. CIT(E). Therefore, in the interest of justice, we are of the considered view, one final opportunity should be given to the assessee-trust to file its relevant details specifically the registered amended MoA etc. before the ld.CIT(E) and in view thereof, we set aside the order of ld. CIT(E) and remand the matter back to his file for re-adjudication on merits as per law complying with the principles of natural justice and considering the various documents/evidences that would be furnished before him by the assessee-trust. The grounds of appeal

of the assessee-trust are disposed off and allowed for statistical purposes. Karnataka Goa Pradesh Maheshwari Sabha

4. In the result, appeal of the assessee stands allowed for statistical purposes. Order pronounced in open Court on 21st August, 2023.

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