ITAT Restores Registration and Approval Applications After Small Trust Misses Notices Due to Lack of Legal Awareness
The assessee was granted a fair chance to provide the required documents and was instructed to cooperate with the proceedings
The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) restored the registration application under Section 12A and approval application under Section 80G of Income Tax Act,1961, of a small trust after it missed notices due to lack of legal awareness. Chorasi Kadava Patidar Samaj Unnati Mandal Patan,appellant-assessee,filed an application for registration under Section 12A of the...
The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) restored the registration application under Section 12A and approval application under Section 80G of Income Tax Act,1961, of a small trust after it missed notices due to lack of legal awareness.
Chorasi Kadava Patidar Samaj Unnati Mandal Patan,appellant-assessee,filed an application for registration under Section 12A of the Act. The Commissioner of Income Tax(Exemption)[CIT(E)] issued notices asking for documents to verify the trust's activities. However, due to non-compliance, the CIT(E) rejected the application, stating the trust failed to prove the genuineness of its activities and meet statutory requirements.
Later, the appellant-assessee applied for approval under Section 80G, but it was rejected without merit examination, as registration under Section 12A was a required condition for 80G approval.
The assessee aggrieved by the order of CIT(E) appealed before the tribunal.
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The assessee's counsel stated that the assessee, being a small trust, was unaware of the procedural requirements due to a lack of legal knowledge. The counsel requested another chance to present its case and provide the necessary documents.
The Departmental Representative (DR) did not object to sending the matter back to the CIT(E) for a fresh decision.
The two member bench comprising Sanjay Garg( Judicial Member ) and Makarand V.Mahadeokar(Accountant Member) found that the assessee, a small trust, did not respond to the CIT(E)'s notices due to lack of knowledge about the process. To ensure fair hearing, the ITAT set aside the CIT(E)'s orders, including the 80G rejection, and sent the matter back for fresh consideration.
The CIT(E) was told to give the assessee a fair chance to submit the required documents and decide the applications under Sections 12A and 80G. The assessee was also asked to cooperate and provide the details on time. The order was set aside.
In short,the appeal was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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