Rejection of Trust's Registration u/s 80G due to Insufficient Details: ITAT Remands Matter to CIT(E) [Read Order]

The Nagpur Bench of Income Tax Appellate Tribunal(ITAT)  remands matter to Commissioner of Income Tax(Exemption)[CIT(E)] after rejection of Trust's Registration under Section 80G of Income Tax Act,1961,due to insufficient details.

Jeewak Welfare Society, appellant-assessee, challenged the rejection of its registration under section 80G of the Income Tax Act, 1961, by the CIT(E).The trust was registered under the Societies Registration Act, 1860, in 1998, and under the Bombay Public Trust Registration Act, 1950, later that year. It had been functioning with its stated objectives since then.

The assessee applied for registration under section 12AB(1)(b)(ii) of the Act. However, it was found that the trust had not provided enough details required for the registration, which led to the CIT(E) rejecting the application.

The assessee's counsel stated that they were ready to submit the required details to the CIT(E) and requested one more opportunity to do so. They asked for the matter to be sent back to the CIT(E) to allow the assessee to present its case.

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The Departmental Representative supported the CIT(E)'s decision.

Read More: ITAT Remands Case Back, Grants Fresh Opportunity for Registration under Sections 12AB and 80G

The two member bench comprising V.Durga Rao( Judicial Member ) and K.M.Roy(Accountant Member) noted that although the CIT(E) had given the assessee chances to provide the required details, the appeals were dismissed due to the failure to submit certain documents. The assessee’s counsel agreed to submit the details if the matter was sent back to the CIT(E).

In the interest of justice, the tribunal decided to give the assessee one more opportunity to present its case. It set aside the CIT(E)'s orders, restored the appeals to his file, and directed him to review the case on merit. The CIT(E) was instructed to give the assessee a reasonable chance to be heard and to submit all required details, without seeking adjournments unless there was a valid reason.

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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