Order of Appellate Authority Seeking Requisite Information Must be Complied With: ITAT [Read Order]
Since the assessee failed to furnish explanation for non-compliance of the order passed by CIT (E), a cost of ₹5000/- was imposed.
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The Ahmedabad bench of Income Tax Appellate Tribunal (ITAT) has recently imposed costs amounting to ₹5000 on an assessee charitable trust who failed to comply with the order of the Commissioner of Income Tax ( Exemption) seeking requisite information from the assessee. The assessee, Gurushri Umedpuri Gundikhad Kadva Patidar Charitable Trust, filed an application for registration...
The Ahmedabad bench of Income Tax Appellate Tribunal (ITAT) has recently imposed costs amounting to ₹5000 on an assessee charitable trust who failed to comply with the order of the Commissioner of Income Tax ( Exemption) seeking requisite information from the assessee.
The assessee, Gurushri Umedpuri Gundikhad Kadva Patidar Charitable Trust, filed an application for registration of the trust under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 on 28.10.2023. The said application was rejected by the CIT (E) for the reason that no compliance was made by the assessee and the documentary evidence as called for by the CIT(E) was not furnished. The provisional registration granted earlier on 07.04.2022 was also cancelled. Aggrieved by the order of the CIT(E) , the assessee preferred the present appeal.
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Dhrunal Bhatt, Authorized Representative, appearing for the assessee contended that no compliance could be made before the CIT(E) and the details and documentary evidence as called for by him were not furnished. He, therefore, requested that another opportunity may be provided to the assessee to produce the documents as required and for this purpose, he requested that the matter may be set aside to the file of the CIT(E).
Darsi Suman Ratnam, CIT DR, on the other hand supported the order of CIT(E). He submitted that the assessee neither furnished any documentary evidence to establish the genuineness of the activities of the trust nor to satisfy the activities were in consonance with the objects of the trust. Therefore, the request for registration was rightly rejected by the CIT(E).
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The bench comprising Suchitra Kamble, Judicial Member and Narendra Prsada Sinha, Accountant Member observed that when the CIT(E) passed an order calling for details/documents for grant of registration to the assessee, the same were neither furnished nor any adjournment was sought on any occasion.
The bench further observed that the CIT(E), in such a situation, had no choice but to reject the application for registration of trust. Since the assessee failed to furnish any reasons for non-compliance of the order, the bench imposed a cost of ₹5000 directing it to be paid to the Income Tax Department within two weeks.
However, considering that the assessee was engaged in charitable activities, the bench granted one last opportunity to the assessee ro represent its case before the CIT (E). Further directions were passed to the assessee to not seek any adjournment and ensure compliance with the order of the CIT (E).
Hence, the appeal was allowed subject to costs.
To Read the full text of the Order CLICK HERE
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