Rotary Club Rajkot Prime Vs CIT(Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, delivered a consolidated order concerning two appeals filed by an assessee challenging the orders of the Commissioner of Income-tax (Exemptions), Ahmedabad [CIT(E)], dated 21.11.2024. The appeals pertained to the rejection of applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5)(iii) of the Income-tax Act, 1961.
The assessee, a charitable organization, had submitted applications in Form No. 10AB seeking both registration and approval. The CIT(E) issued several notices requesting documents and information to verify the genuineness of the assessee’s activities and its compliance with procedural norms. However, the assessee did not respond to these notices, nor did it file any supporting documents or seek adjournments. Consequently, the CIT(E) rejected both applications and canceled the provisional registration and approval previously granted.
In its appeal before the Tribunal, the assessee contended that the CIT(E) erred in rejecting the applications without properly considering the documents filed and in not giving due regard to the fact that verification of activities could not be conducted without examining the papers submitted. However, the record revealed that the assessee had failed to appear or make submissions before the CIT(E) and also did not comply with Rule 17A(2) and Rule 11AA(2) of the Income-tax Rules, 1962, which mandate the submission of specified documents and evidence in support of registration and approval claims.
