The Pune bench of Satbeer Singh Godara, (Judicial Member) and Dipak P. Ripote, (Accountant Member) of the Income Tax Appellate Tribunal (ITAT) held that Trust formed for Bramhakshatriya Community was not eligible for Income Tax exemption.
Assesee Maharashtra Bramhakshatriya Sangh filed an appeal before the tribunal against the order of CIT(A)which involved proceedings under Section 12AA of the Income Tax Act, 1961.
Section 12AA of the Income Tax Act, 1961 deals with registration of the trust for aiming to receive income tax exemption.
When it was called for hearing no one appeared for the assessee.
The written submission filed by the assessee challenged the correctness of both the lower authorities’ action in not granting registration under Section 12A(1)(ac) of the Income Tax Act on the ground that it had not submitted a copy of the trust deed and other relevant material.
Sardar Singh Meena, who appeared for the revenue submitted that the “assessee trust had been formed aiming for only a particular cast that is “Brahma Kshatriya Community” and, therefore, the object of the assessee trust cannot be considered to be for any charity meant for general public “.
Thereafter, the tribunal concluded through the observation reached that “Faced with the situation and in light of the fact that the CIT(E)’s order is also a non-speaking one to this extent we deem it appropriate to restore the assessee’s substantive grievance back to the very authority for appropriate adjudication as per law preferably within three effective opportunities of hearing.”
Therefore, the bench allowed the appeal of the assessee.
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