The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) restores the case to Commissioner of Income Tax (Exemption) [CIT (E)] and held that tax exemption under Section 12 AB of Income Tax Act, 1961 to be allowed to trust upon furnishing required set of documents.
The assessee Gandhi Ashram Dhinoj filed an application under Section 12AB of Income Tax Act was filed by the appellant in Form No.10AB under Rule 17A of the Income Tax Rules, 1962. Notice was issued by the CIT(E) and served upon the assessee through e-mail id to furnish detailed note on the activities actually carried out by the trust as well as certain details/documents, but no document was furnished neither any adjournment was sought for.
On subsequent dates when notices were issued by the authority the assessee submitted few details but the crutial information/documents yet to be supplied. Under Section 12AB of Income Tax Act, it is the mandatory duty cast upon the CIT (E)/Principal Commissioner to conduct an enquiry about the activities of the Trust and to verify the objects as per the Trust deed and the genuineness of the activities of the Trust for grant of registration of the Trust.
Despite various opportunities the appellant failed to submit the complete set of details and therefore, application for grant of the registration of the Trust under Section 12AB of Income Tax Act is rejected by CIT (E).
Aggrived by the order the assessee filed an appeal before the Tribunal and the Authorised Representative of the assessee Biren Shah admitted fact that in spite of best effort made by the appellant, the entire set of documents could not be gathered during the pendency of the proceeding before the CIT (E) and the appellant was, thus, unable to submit the same in order to satisfy the CIT (E) in regard to the genuineness of the activities carried out by the Trust.
And further prayed for another opportunity of being heard to the appellant by the CIT (E) and undertakes to file the requisite documents and/or evidence in support of the case made out by the appellant for grant of registration under Section 12AB of Income Tax Act.
Departmental Representative Rudolf D‘Souza did not oppose to the contentions made.
The Bench comprising of Waseem Ahmed, Accountant Member & Ms. Madhumita Roy, Judicial Member held that it fit and proper to provide another opportunity of being heard to the appellant in support of his case for registration of the Trust under Section 12AB of Income Tax Act. Thus, the Tribunal disposed of the appeal by restoring the issue to the file of the CIT (E) with a direction upon him to provide a further opportunity of being heard to the appellant and to consider the documents and/or evidence which the appellant would file as per the direction issued by the CIT(E).
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