Rejection of Registration of Trust for Non-Compliance of Notices and Non-Registration u/s. 12AB without Adhering to Principles of Natural Justice: ITAT directs Re-Adjudication
Rejection of Registration of Trust – Compliance of Notices and Non-Registration – Non-Registration us. 12AB – Principles of Natural Justice – ITAT – Re-Adjudication – TAXSCAN
Rejection of Registration of Trust – Compliance of Notices and Non-Registration – Non-Registration us. 12AB – Principles of Natural Justice – ITAT – Re-Adjudication – TAXSCAN
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has directed re-adjudication on finding the rejection of registration of a trust for non-compliance of notice and non-registration under Section 12AB of the Income Tax Act, 1961 without adhering to principle of natural justice.
The assessee trust, Shivajirao Jondhale Research had filed application before the Commissioner of Income Tax Exemption (CIT(E)) as per the provisions of clause (iii) of first provision to Section 80G (5) of the Income Tax Act, 1961. The CIT(E) rejected the application of the assessee for the reason that the assessee’s registration under Section 12AB of the Income Tax Act had been rejected and the assessee was said to have not fulfilled the condition (i) of Section 80G(5) of the Income Tax Act.
Tanzil Padvekar and Gopal Sharma who appeared on behalf of the assessee contended that the Tribunal had already by order dated 17.02.2023 had remanded the issue of registration under Section 12A/12AB of the Income Tax Act to the CIT(E) for giving the assessee another opportunity to furnish the details before the CIT(E).
Kishore Dhule on behalf of the revenue submitted that the assessee had not complied with the said notices for the purpose of uploading details pertaining to the date of commencement of the activity etc. and that the assessee had not been registered under Section 12AB read with Section 12A(1)(ac)(i)/12A(1)(ac)(iii) of the Act nor was it approved under Section 10(23C) read with clause (i)/(iii) of first proviso to the said section and that the assessee’s case was not covered under the exclusions provided under Section 80G(5)(i) of the Income Tax Act.
The two-member Bench of OM Prakash Kant, (Accountant Member) and Kavitha Rajagopal, (Judicial Member) allowed the appeal and directed re-adjudication holding that the assessee had to be given one more opportunity to present the details sought for by the CIT(E) as on the principles of natural justice.
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