Case Law Details
Society of Educational Assistance and Training Vs CIT (Exemptions) (ITAT Amritsar)
Introduction: The Income Tax Appellate Tribunal (ITAT) Amritsar, in a recent case of Society of Educational Assistance and Training Vs CIT (Exemptions), has ordered reconsideration of the rejection of a charitable trust’s registration application. The order came after it was established that the assessee was not given a fair hearing opportunity before rejecting its application under Section 12AA of the Income Tax Act.
Analysis: The assessee, an educational trust, had applied for registration under sections 12A(1)(ac)(iii) and 80G(5) of the Act. The ld. Commissioner of Income Tax (Exemption) [CIT(E)] rejected both applications citing noncompliance of notice and non-submission of evidence.
However, the assessee argued that it was denied a reasonable opportunity to submit necessary documents. The ITAT found the claim to be valid and observed that the trust, serving without any caste or creed distinctions, was indeed involved in charitable activities.
The case brings to the forefront the importance of a fair hearing in the application process. Despite the CIT(E)’s argument of having provided three opportunities to the assessee, ITAT noted that a reasonable opportunity was denied, necessitating the case’s remittance back to the ld. CIT(E) for de novo adjudication.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
