Shridi Sai Baba Sumangalam Sanstha Vs CIT (Exemption) (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, in the case of Shridi Sai Baba Sumangalam Sanstha Vs. CIT (Exemption), remanded the matter of a trust’s rejected application for GST registration under Section 12A back to the Commissioner of Income Tax (Exemption) [CIT(E)].
The assessee, a trust, had its application for registration under Section 12A(1)(ac)(iii) rejected ex-parte by the CIT(E) due to non-compliance with requests for documents. The trust’s counsel admitted that the default was attributable to the previous counsel’s negligence and failure to pursue the case properly.
Recognizing the principle that a taxpayer should not suffer due to the fault of a legal representative, and since the Revenue did not object to the proposal, the ITAT found it appropriate, in the interest of justice, to grant the trust a fresh opportunity. The Tribunal set aside the ex-parte rejection order and directed the CIT(E) to adjudicate the application afresh after providing the trust with an adequate opportunity of being heard and submitting the requisite documents.
This decision aligns with the judicial principle that non-compliance due to technical or procedural lapses often warrants a chance for rectification, particularly when the assessee demonstrates a willingness to comply. The appeal was allowed for statistical purposes.
