Sharvashram Jagruti Sansthan Trust Vs CIT (Exemption) (ITAT Ahmedabad)
In the case of Sharvashram Jagruti Sansthan Trust vs CIT (Exemption), the ITAT Ahmedabad reviewed an appeal against the order dated 12.10.2023, in which the Commissioner of Income Tax (Exemption) [CIT(E)] rejected the trust’s application for provisional registration under Section 12AB of the Income Tax Act. The CIT(E) dismissed the application citing inadequate documentation and lack of evidence regarding the trust’s genuine activities, object compliance, and adherence to relevant laws. The trust argued that it was not afforded sufficient time to submit all required details and was denied a fair opportunity to present its case, with only two notices of hearing being issued.
Upon examining the case, the ITAT observed procedural lapses, including the ex-parte decision by the CIT(E) without providing additional hearing opportunities. The trust had responded partially to the first notice dated 11.08.2023 but was unable to meet the compliance deadline for the second notice dated 05.10.2023. The ITAT deemed this a violation of the principles of natural justice and remanded the case back to the CIT(E) for re-evaluation. The CIT(E) has been directed to consider the trust’s application afresh, providing adequate opportunity for the trust to present its case and deciding based on the evidence submitted.
