Seva Samarpan Charitable Trust Vs CIT (Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad addressed an appeal filed by Seva Samarpan Charitable Trust, challenging the Commissioner of Income Tax (Exemptions)’s (CIT(E)) rejection of their application for registration under Section 12A of the Income Tax Act. The CIT(E) had rejected the trust’s application due to the trust’s failure to provide requested details and information, after issuing two notices. The CIT(E) noted that the trust did not file any submissions or request an adjournment. The CIT(E) also cancelled the trust’s previously granted provisional registration. The CIT(E)’s rejection was based on the trust’s inability to demonstrate the genuineness of its activities, their alignment with the trust’s objectives, and compliance with relevant laws.
The trust argued before the ITAT that it was not given a reasonable opportunity to present its case, as the two notices were issued within a short timeframe. The trust claimed it had difficulty accessing the e-portal during that period and was unaware of the notices. The trust’s counsel highlighted that substantial details, including the registration certificate, trust deed, and audit reports, were submitted in Form 10AB, and that the trust had been operational since December 2020. The trust requested the ITAT to restore the case to the CIT(E) for a fresh review, providing the trust with a proper opportunity to present its case. The Revenue did not object to this request. The ITAT, considering the facts and in the interest of justice, decided to restore the case to the CIT(E) for a de-novo consideration. The ITAT directed the CIT(E) to provide the trust with a reasonable opportunity to be heard. The trust’s appeal was allowed for statistical purposes, and the case was remanded for a fresh review.
