Akhil Bharatvarshiya Papeek Ashram Trust Vs CIT (ITAT Jaipur)
ITAT Jaipur held that discrepancies based on which application for registration under section 12AB was rejected are curable in nature. Hence, matter restored back to file of CIT(E) for afresh adjudication.
Facts- The assessee, vide application in form no. 10AB, sought registration u/s.12AB of the Act. In that proceeding, CIT(E) gave four opportunity to the assessee to substantiate their claim of registration. Vide letter dated 29.06.2024 the assessee was asked to resolve various queries raised by CIT(E) but the assessee – applicant did not file the complete details and therefore, the application for registration of the applicant-trust as was rejected for registration u/s 12AB of the Act was rejected. Being aggrieved, the assessee has preferred the present appeal.
Conclusion- Held that the application u/s 12AB of the Act was rejected on account of three reasons. The first reason was that there was discrepancy in dissolution clause. On the basis of the details available on record it is noted that the assessee much before changed that clause but could not so demonstrate before the ld. CIT(E), and the assessee has placed on record the modified trust deed. Based on this aspect of the matter, we feel that the observation so made is curable in nature and since the assessee admitted that in the last letter it could not file the complete details and that, the assessee be given a chance to rectify that observation. As regards the other two observations of ld. CIT(E) that the assessee works for the benefit of particular community and that its activities are not genuine, we find force that the assessee trust is working as a charitable trust since 1963 and has been assessed as such taking the benefit of sections 11 and 12 of the Act and therefore, the observations of the ld. CIT(E) that assessee works for a particular community and activities were not genuine come to be made as the assessee could not supply complete details in response to the letter issued on 29.06.2024. Based on the details placed on record in the paper book, we are of the considered view that the said observations also are curable in nature. Therefore, considering the reasons advanced the defects being curable in nature, we are of the considered view that the assessee applicant needs one chance to establish its stand on merits. Based on the overall facts as discussed herein above, bench adopts a lenient view and feels that the assessee should be given one more chance to produce documents before the ld. CIT(E) as regards application for registration u/s 12AB of the Act. In view of all facts and circumstances, the matter is restored to the file of ld. CIT(E) for afresh adjudication by providing by adequate opportunity.
