CIT(E) Rejects 12A Registration: ITAT Remands Matter, Directs Applicant to Submit Documents [Read Order]

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) remanded back the matter to the Commissioner of Income Tax (Exemptions) [CIT(E)], directing the applicant to submit the necessary documents for section 12A registration.

Mantra Yog Gau Seva Trust, (assessee), a charitable organization, had applied for registration under Section 12AB and approval under Section 80G of the Income Tax Act. The CIT(E) found that the assessee had not submitted certain necessary documents as per Rule 17A.

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Despite being given opportunities, the assessee failed to fully comply with the submission requirements. The CIT(E) issued multiple show-cause notices seeking clarifications and additional documents.

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Due to non-compliance, the CIT(E) rejected the application for registration under Section 12A, which consequently led to the rejection of the Section 80G application as well.Aggrieved by the order of the CIT(E), the assessee filed an appeal before the ITAT.

The counsel for the assessee submitted that while past compliance was made, complete compliance could not be done due to unavoidable circumstances. The counsel submitted that if given another opportunity, the assessee would furnish all required documents and address any concerns raised by the CIT(E).

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The two-member bench, comprising Saktijit Dey (Vice President) and Girish Agrawal (Accountant Member), observed that the only reason for rejection was the non-furnishing of certain documents.

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The tribunal also observed that the counsel for the assessee gave assurance to comply with queries raised by the CIT(E). Therefore, The tribunal set aside the order of the CIT(E).

Therefore, the tribunal directed the CIT(E) to reconsider the application for registration under section 12AB and approval under section 80G of the Income Tax Act on its own merits after providing a reasonable opportunity to be heard by the trust. The tribunal further instructed the assessee to remain vigilant in the proceedings and comply with all necessary requirements.

Thereby, the appeal of the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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