The Income Tax Appellate Tribunal (ITAT), Mumbai Bench directed the charitable trust to submit requisite documents to CIT(Exemption) to seek registration under section 12A of the Income Tax Act.
The assessee trust, Shri Bhoiwada (Parel) Jain Sangh had preferred an application in the prescribed format seeking registration of charitable trust under section 12A of the Income Tax Act 1961.
The CIT(Exemption) had called for certain details such as PAN card of the Trust, PAN card of trustees and Settlor, copy of bank accounts of the trust, NOC in respect of office premises, certificate of registration of trust issued by the Charity Commissioner, copies of Audited Accounts of the Trust and note on activities undertaken by the Trust together with documentary evidences.
Since there was no compliance from the side of the assessee trust, the CIT(Exemption) pleaded that the genuineness of the activities of the trust could not be verified for want of aforesaid documents and accordingly, proceeded to reject the registration under section 12A of the Act.
The assessee has submitted that one of the trustees of the assessee trust stating that accounts and tax related matters were earlier handled by one of the trustees Smt. Panibai H Jain alias Bafna who was seriously ill and thereafter died.
The assessee also placed on record the copy of the death certificate of that earlier trustee. The assessee also submitted the affidavit also contained the affirmation that the person, who is affirming the affidavit, is a Senior citizen, aged about 78 years, and not maintaining good health which had eventually resulted in non-compliance before the ld CIT(Exemption).
Both these factors collectively contributed for non-submission of documents before the CIT(Exemption) within the prescribed time. Accordingly, the assessee prayed that assessee trust be given one more opportunity to produce the relevant documents before the CIT(Exemption) to decide the application seeking registration u/s 12A of the Act in accordance with law.
The coram of C.N.Prasad and M.Balaganesh in the interest of justice and Fairplay, held that the assessee should be afforded one more opportunity for submission of requisite documents called for by the CIT (Exemption). Accordingly, set aside this appeal to the file of the CIT(Exemption) for denovo adjudication in accordance with law.
“Needless to mention that assessee be given sufficient opportunity of being heard. The assessee is directed to submit all the requisite details that were called for by the ld. CIT(Exemption) on earlier occasions on the first scheduled date of hearing and thereafter co-operate in expeditious disposal of this application seeking for registration u/s 12AA of the Act by the ld.CIT(Exemption). The assessee is also given liberty to furnish fresh documents with supporting evidence, if any, in support of its contentions. Accordingly, the grounds raised by the assessee are allowed for statistical purposes,” the ITAT said.
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