Apna Charitable Trust Vs CIT (Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad overturned orders by the Commissioner of Income Tax (Exemption) [CIT(E)] that rejected Apna Charitable Trust’s applications for renewal of registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5)(iii) of the Income Tax Act. The tribunal found that the CIT(E) had failed to consider the trust’s timely submissions, which included detailed activity reports, financial statements, and audit reports, before rejecting their applications. The trust, operating a hospital and pharmacy, had complied with the CIT(E)’s notices, submitting all requested documents on August 21, 2024.
The ITAT highlighted that the CIT(E) rejected the applications on grounds of non-compliance, despite the trust providing all necessary information within the stipulated deadline. This action was deemed a violation of natural justice, as the CIT(E) did not examine the submitted documents. The tribunal emphasized that the trust’s submissions should have been duly considered before any adverse order was passed. Consequently, the ITAT set aside the CIT(E)’s orders and restored both cases for fresh adjudication. The CIT(E) was directed to examine the trust’s submissions and decide the matter afresh after granting the trust an opportunity for a hearing. This decision underscores the importance of due process and fair consideration of taxpayer submissions in administrative proceedings.
