The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) dismissed the appeal as the assessee sought to withdraw it after receiving the required registration under section 12A of the Income Tax Act,1961.
Jay Bhavani Mata Trust, the appellant-assessee, filed an appeal challenging the rejection order passed by the Commissioner Of Income Tax(Exemption)[CIT(E)], dated 04/02/2023, for the registration under section 12A(1)(ac)(iv) of the Income Tax Act, 1961.
Section 12A(1)(ac)(iv) of the Income Tax Act, 1961, mandates that charitable or religious trusts or institutions must maintain proper books of account and file annual returns in the prescribed format to qualify for tax exemptions. This provision ensures transparency and accountability in the financial dealings of such entities, which is essential for them to retain their exempt status under the Act.
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The grounds on which the appeal was filed are, firstly, whether the CIT(E) erred by rejecting the application for registration of the trust under section 12AB of the Act ex parte, in violation of the principles of natural justice.
Section 12AB of the Income Tax Act, 1961, requires charitable or religious trusts to apply for and renew their registration to avail tax exemptions. It ensures compliance with regulations and proper record-keeping.
Secondly, whether the CIT(E) erred by rejecting the application under section 12A(1)(ac) of the Act on a technical ground without considering the merits of the case.
Thirdly, whether the CIT(E) passed the order without properly appreciating the facts and law, which was a clear breach of law and the principles of natural justice, warranting the quashing of the order.
Shri Parimalsinh B. Parmar appeared on behalf of the assessee. The counsel submitted a letter, signed on behalf of the assessee, which was acknowledged on 15/07/2024. The letter requested permission to withdraw the appeal, as the assessee had since obtained the required registration.
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Dr. Darsi Suman Ratnam appeared on behalf of the respondent-assessee. The counsel did not raise any objection regarding the withdrawal of the appeal.
The two-member bench comprising Suchitra Kamble(Judicial Member) and Makarand V. Mahadeokar(Accountant Member) permitted the withdrawal of the appeal as requested in the withdrawal application.
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