Samskruthi Educational Trust Vs CIT (Exemptions) (ITAT Bangalore)
The Income Tax Appellate Tribunal (ITAT), Bangalore Bench, has ruled that the registration of a trust under Section 12AB of the Income Tax Act cannot be rejected merely due to the non-submission of certain documents, especially when there are claims of non-receipt of notices. The Tribunal, in the case of Samskruthi Educational Trust vs. CIT (Exemptions), has remitted the matter back to the Commissioner of Income Tax (Exemptions) [CIT(E)] for a fresh adjudication, emphasizing the principles of natural justice and fair play.
The assessee, Samskruthi Educational Trust, had appealed against the CIT(E)’s order dated November 15, 2024, which canceled its registration under Section 12AB of the Income Tax Act. The Trust raised multiple grounds, primarily challenging the cancellation based solely on the non-submission of documents and asserting that the failure to submit documents stemmed from non-receipt of crucial notices from the Income Tax authorities.
Background and Grounds of Appeal
Samskruthi Educational Trust was established on June 17, 2022, with the broad objectives of promoting education, including establishing and running various educational institutions from pre-primary to post-graduation, technical institutions, and related facilities like libraries and hostels. The Trust was granted provisional registration by the Principal Commissioner of Income Tax (PCIT)/CIT on April 8, 2024. Subsequently, it applied for final registration under Section 12AB in Form 10AB on May 25, 2024.
