Case Law Details
Gandhi Ashram Dhinoj Vs CIT (ITAT Ahmedabad)
ITAT Ahmedabad restored the issue to the file of CIT(E) and directed to give another opportunity of being heard to the appellant in support of his case for registration of Trust u/s. 12AB of the Income Tax Act and also directed appellant to furnish requisite documents in the matter.
Facts- An application u/s. 12AB of the Act was filed by the appellant in Form No.10AB under Rule 17A of the Income Tax Rules, 1962. Thereafter, notice was issued by the CIT(E) and served upon the assessee through ITBA on the e-mail id asking it to furnish detailed note on the activities actually carried out by the trust as well as certain details/documents as mentioned therein but without any result. No document was furnished neither any adjournment was sought for.
Despite various opportunities as per the statutory provision, the appellant failed to submit the complete set of details and therefore the application for grant of the registration of the Trust u/s. 12AB of the Act stood rejected.
Conclusion- Held that it fit and proper to provide another opportunity of being heard to the appellant in support of his case for registration of the Trust under Section 12AB of Income Tax Act. Thus, the Tribunal disposed of the appeal by restoring the issue to the file of the CIT (E) with a direction upon him to provide a further opportunity of being heard to the appellant and to consider the documents and/or evidence which the appellant would file as per the direction issued by the CIT(E).
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
1. The bunch of eight appeals filed at the behest of the different assessees are directed against the order dated 27.09.2022 (in ITA No. 470/Ahd/2022), 26.09.2022 (in ITA Nos. 485, 478, 474, 457 & 456/Ahd/2022), 28.09.2022 (in 419/Ahd/2022 & 23.09.2022 (in ITA No.489/Ahd/2022) passed by the Ld. Commissioner of Income Tax (Exemptions), Ahmedabad (in short ‘CIT(E)’) under Section 12AA of the Income Tax Act, 1961, (hereinafter referred to as ‘the Act’) for Assessment Year 2022-23 in all appeals.
2. Since, the matters relate to identical issue, the bunch of appeals are heard analogously and are being disposed of by a common order for the sake of convenience.
3. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record.
4. The short fact involved in this matter is this that an application under Section 12AB of the Act was filed by the appellant on 3 1.03.2022 in Form No.1 0AB under Rule 1 7A of the Income Tax Rules, 1962. Thereafter, notice dated 16.07.2022 was issued by the CIT(Exemption) and served upon the assesse through ITBA on the e-mail id given by the appellant trust in its online application asking it to furnish detailed note on the activities actually carried out by the trust as well as certain details/documents as mentioned therein but without any result. No document was furnished neither any adjournment was sought for. Thus, further letter dated 03.08.2022 and 16.08.2022 directing the appellant to furnish details were issued and served. Though, nothing was forthcoming from the appellant, in order to adhere to the principle of natural justice, opportunity was further given to the applicant/appellant upon issuing another notice dated 07.09.2022 sent through ITBA on the e-mail ID through which the appellant made the online application. The appellant was directed to furnish the pending details. In fact, the appellant filed few details as directed and the following crucial information/documents yet to be supplied:
i. Income & Expenditure Statement for F.Ys. 2019-20, 2020-21 & 2021-22
ii. Audited Accounts for F.Ys. 2019-20, 2020-21 & 2021-22
iii. Undertaking regarding adherence towards all the requirements of law as are material for the purpose of its objects as enumerated in the trust deed.
iv. Id proofs of the Trustees
v. Notes on activities conducted since inception.
5. Under Section 12AB of the Act, it is the mandatory duty cast upon the CIT(E)/Principal Commissioner to conduct an enquiry about the activities of the Trust and to verify the objects as per the Trust deed and the genuineness of the activities of the Trust upon receipt of the relevant documents furnished by the assesse alongwith application for grant of registration of the Trust. Further that, the Commissioner is required to be satisfied himself about the genuineness of the activities of the trust and also to verify that these activities are in consonance with the objects of the Trust or Institution. Despite various opportunities as per the statutory provision, the appellant failed to submit the complete set of details and therefore, satisfaction in regard to the genuineness of the activities or verification of its activities whether the same is in consonance with its objects was unable to be arrived at by the Ld. CIT(E) and the application for grant of the registration of the Trust under Section 12AB of the Act stood rejected. Hence, the instant appeal before us.
6. At the time of hearing of the appeal, Ld. Counsel appearing for the appellant submitted before us that it is an admitted fact that though in spite of best effort made by the appellant, the entire set of documents could not be gathered during the pendency of the proceeding before the Ld. CIT(E) and the appellant was, thus, unable to submit the same in order to satisfy the Ld. CIT(E) in regard to the genuineness of the activities carried out by the Trust. In that view of the matter, he prays for another opportunity of being heard to the appellant by the Ld. CIT(E) and undertakes to file the requisite documents and/or evidence in support of the case made out by the appellant for grant of registration under Section 12AB of the Act. However, a copy of each of the document has been annexed to the paper book filed by the appellant before us. Such prayer made by the Ld. AR has not been controverted by Ld. DR with all his fairness.
7. Having heard the Learned Counsel appearing for the parties and having regard to the facts and circumstances of the case, we, in order to prevent the miscarriage of justice, find it fit and proper to provide another opportunity of being heard to the appellant in support of his case for registration of the Trust under Section 1 2AB of the Act. We, thus, dispose of this appeal by restoring the issue to the file of the Ld. CIT(E) with a direction upon him to provide a further opportunity of being heard to the appellant and to consider the documents and/or evidence which the appellant would file as per the direction issued by the Ld. CIT(E). Upon considering the entire set of documents and upon affording an opportunity of being heard to the appellant the Ld. CIT(E) to dispose of the application for grant of registration of the Trust under Section 1 2AB of the Act with a reasoned order. We also make it clear, that in the event, the appellant doesn’t co-operate with the Ld. CIT(E) as directed hereinabove, the Ld. CIT(E) would be at liberty to pass orders strictly in accordance with law.
8. In the result, assessee’s appeal is allowed.
9. The decision in ITA No. 470/Ahd/2022 for A.Y. 2022-23 shall also apply mutatis mutandis in all other 7 apeals.
10. In the combined result, all appeals are allowed.
This Order pronounced on 2 1/07/2023
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