Trust’s Rejection Order Lacks Date and Proper Service of Notices: ITAT remands 12A Registration Matter back to CIT(E) [Read Order]

In a recent ruling, the Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) remanded a trust registration case under section 12A of the Income Tax Act, 1961, holding that the Commissioner of Income Tax (Exemption) (CIT(E)) failed to mention dates of the notices or prove proper service to the assessee.

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The assessee, Satyanarayan Park Owners Association, a trust, had filed an online application in Form 10AB seeking its registration under Section 12A(1)(ac) of the Income tax law. The application was later rejected by the CIT(E) on the grounds of non-compliance with notices and failure to furnish supporting documents.

Aggrieved by the CIT(E) order, the assessee moved in appeal before the ITAT.

Rajnikant Pragada, the counsel representing the assessee, argued that the assessee was not given the proper opportunity to present the required documents. It was argued that no effective hearing took place and that the order did not mention the dates of notices or proof of service.

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Meanwhile, R.N. Dsouza, the counsel representing the revenue, pointed out that the rejection was justified as the assessee had failed to comply with the notices issued and did not furnish the details sought, despite sufficient time being granted by the CIT(E).

After hearing both sides, the bench comprising Dr. BRR Kumar (Vice President) and Suchitra Kamble (Judicial Member) held that the rejection order dated 22.10.2024 was deficient in essential details.

The tribunal noted that there was no mention of the dates on which notices were issued or whether they were duly served upon the assessee.

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Observing a breach of natural justice, the bench ruled that the assessee was not provided a fair opportunity to respond. Thus, the matter was remanded back to the file of the CIT(E) for fresh adjudication after proper verification of the documents submitted by the assessee.

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To Read the full text of the Order CLICK HERE

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