Denial of Shri Shirdi Sai Baba Trust Registration due to Lapse of Earlier Counsel: ITAT remands Matter [Read Order]
During the hearing before the ITAT, the assessee, submitted that the earlier counsel had failed to pursue the matter diligently, which led to the non-compliance.
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has remitted back the matter concerning Shri Shirdi Sai Baba Sumangalam Sanstha, Faridabad, after the Commissioner of Income Tax (Exemption) [CIT(E)], Chandigarh rejected its application for registration under Section 12A of the Income Tax Act, 1961.
The assessee, Shri Shirdi Sai Baba Sumangalam Sanstha, a trust based in Faridabad, had applied for registration under Section 12A(1)(ac)(iii) of the Act on 31 March 2022 through Form 10AB. The registration was sought for exemption as a charitable trust. The CIT(E), Chandigarh, however, rejected the application ex parte on 22 September 2022, citing non-compliance with the requirement of furnishing certain documents and details.
During the hearing before the ITAT, the assessee, represented by Chartered Accountant Ankur Agarwal, submitted that the earlier counsel had failed to pursue the matter diligently, which led to the non-compliance. The new counsel assured the Tribunal that the assessee is now prepared to comply with all requirements and requested that the matter be restored to the CIT(E) for fresh adjudication.
On the other hand, the Departmental Representative, Jaya Chaudhary, CIT(DR), did not object to the request for remand made by the assessee’s counsel.
The Bench comprising Shri Shamim Yahya (Accountant Member) and Shri Anubhav Sharma (Judicial Member) observed that in the interest of justice, the assessee should be given another opportunity to present its case. The Tribunal noted that the rejection by the CIT(E) was made without proper representation from the assessee and hence warranted a fresh hearing.
“We deem it fit and proper to remit back the issues in dispute to the file of the CIT (Exemption) with the directions to decide the same afresh, after giving an adequate opportunity of being heard to the assessee”, the bench noted.
The ITAT allowed the appeal for statistical purposes and directed the CIT(E) to reconsider the application of the trust for registration under Section 12A. The case will now return to the CIT(E) for a fresh decision after due opportunity of hearing.
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