The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) restored the matter to Commissioner of Income Tax(Exemption)[CIT(E)] for fresh consideration in a case where the registration of a trust under Section 12A of the Income Tax Act,1961 was rejected due to non-compliance with notices.
Satvic Movement, appellant-assessee, challenged the appeals against the orders of the CIT(E) dated 31.03.2023, wherein the registration under Section 12A of the Act, was denied, and the application for registration under Section 80G(5) of the Act was also rejected.
The assessee’s counsel argued that the CIT(E) had not given adequate opportunity or reviewed the relevant material, resulting in an error in the impugned order. He stated that this violated the principles of natural justice and requested that the matter be sent back to the CIT(E) for reconsideration.
In response, the Revenue Counsel stated that the assessee’s appeal had no merit and requested its dismissal.
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The two member bench comprising Avdhesh Kumar Mishra (Judicial Member) and Yogesh Kumar US(Accountant Member)heard the parties and reviewed the material and noted that the assessee was asked to provide certain details and documents to support the registration claim under Section 12A and 80G(5) of the Act during the proceedings before the CIT(E). However, the applications were rejected because the assessee did not submit the required information.
The tribunal decided to send the matter back to the CIT(E) for a fresh decision, after giving the assessee a chance to be heard. The assessee was also instructed to submit all the necessary details and documents for the registration claim.
In short, the appeals filed by the assessee were partly allowed for statistical purposes.
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