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Facts
The assessee filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) rejected the application for non-production of necessary evidences related to charitable activities. The assessee argued that complete details were filed and that no activities were carried out until 31.3.2023.
Held
The Tribunal held that the assessee was not provided with a proper opportunity of being heard. Consequently, the order of the CIT(E) was set aside, and the matter was remitted back to the CIT(E) for fresh consideration after examining all details and compliance by the assessee.
Key Issues
Whether the CIT(E) erred in rejecting the registration application without providing sufficient opportunity for the assessee to furnish all required details and evidences?
Sections Cited
12A(1)(ac)(iii), 1961
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Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI
(ASSESSMENT YEAR 2023-24) Shri Durgyana Seva Samity, CIT(Exemptions), House No.24, Shastri Nagar, Chandigarh. Hisar, Haryana-125001. Vs. PAN:ABDTS9074L (Appellant) (Respondent) Assessee by Shri Ved Jain, Adv., Shri Aman Garg, CA and Ms. Ishika Dua, CA Department by Shri Mahesh Kumar, CIT-DR Date of Hearing 04/06/2025 Date of Pronouncement 28/08/2025 O R D E R
PER MANISH AGARWAL, AM,
This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Exemption), Chandigarh [CIT(E), in short] in DIN & Notice No. ITBA/EXM/F/EXM45/2023-24/1062481243(1) dt. 12.03.2024 rejecting the registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).
In the instant case, assessee had filed application on 30.09.2023 for registration u/s. 12A(1)(ac)(iii) of the Act before the ld. CIT(E). It was the submission that it is claimed by ld. CIT(E) that notices were issued to the assessee in respect of proceedings u/s.12A(1)(ac)(iii) of the Act to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for through e-filing portal. It was the submission that complete details were filed by the assessee with respect to the charitable activities carried out like medical camps etc. It was the submission that no activities were carried out upto 31.3.3.2023 and thus the funds received Shri Durgyana Seva Samity vs. ACIT were utilized in day to day activity which have not been considered by ld. CIT(E). It was the submission that it was in this backdrop that the ld. CIT(E) rejected the application and dismissed the application filed by the assessee. Ld. AR prayed that the appellant trust may be granted registration u/s.12A(1)(ac)(iii) of the Act.
In reply, ld. CIT DR objected to the grant of registration and requested that the matter may be sent back to the file of ld. CIT(E) for reconsideration of the submissions made by the assessee.
We have considered the rival submissions. Ld. CIT(Exemption), Chandigarh has rejected the applications filed by assessee for non-production of the necessary evidences for carrying out of the charitable activities. A perusal of the impugned order of ld. CIT(E), Chandigarh clearly shows that notices were issued to the assessee through e-filing portal to furnish the detailed reply on the specific information called for. The appellant trust filed certain information however the complete details were not filed, thus, the application for registration u/s. 12A(1)(ac)(iii) was rejected by the ld. CIT(E). ld. AR submits that the appellant trust has filed all the evidences as sought by ld. CIT(E) who failed to appreciate the same. We are of the view that proper opportunity of being heard was not provided to the assessee and hence, in the interest of justice, we set aside the order of CIT(E) and remit the issue back to the file of the CIT(E), who will examine all the details and assessee will comply with all the requirements. In term of the above, the order of CIT(E) is set aside and matter restored back to his file for fresh consideration of registration u/s.12A(1)(ac)(iii) of the Act.
In the result, appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on 28 .08.2025.