Rejection of Trust Registration Due to Non-Submission of Required Documents: ITAT Restores Matter to CIT(E) [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) restored the matter to the Commissioner of Income Tax(Exemption)[CIT(E)] after rejecting the trust registration application under Section 12AB and approval under Section 80G of Income Tax Act,1961 due to the non-submission of required documents.

D S Mittle Charities,appellant-assessee, had applied for registration under Section 12AB and approval under Section 80G of the Act. During verification, the CIT(E) found that some required documents were missing and asked the appellant to address the deficiencies and provide additional details. Alleging non-compliance with these requests, the CIT(E) rejected both the applications.

Sections 12AB and 80G of the Act deal with tax exemptions and deductions for charitable organizations and donors. Section 12AB requires charitable trusts to register for tax exemptions, with registration renewed every five years. Section 80G allows donors to claim deductions for donations to eligible organizations, with deductions ranging from 50% to 100%, provided donations are made through prescribed modes and receipts are obtained.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The assessee informed the tribunal that it had responded to the first notice from the CIT(E) but could not address later notices due to unavoidable reasons. The counsel assured that all queries would be addressed if given another chance.

The two member bench of Saktijit Dey(Vice-President) and Girish Agrawal(Accountant Member) considered the submissions and noted that the applications for registration under Section 12AB and approval under Section 80G were rejected solely due to the non-furnishing of certain documents and clarifications sought by the CIT(E).

However, the assessee’s counsel assured that all queries would be addressed if given an opportunity. Considering this, the tribunal set aside the CIT(E)'s orders and restored the matters for reconsideration. It directed the CIT(E) to review the applications on their merits after providing the assessee with a fair opportunity to present its case.

In short,the appeal filed by the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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