Shree Sharda Sarvajanik Seva Mandal Vs CIT (ITAT Ahmedabad)
Ahmedabad: The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, has set aside an order passed by the Commissioner of Income Tax (Exemption) [CIT(E)] that had rejected the application for fresh registration and cancelled the provisional registration of Shree Sharda Sarvajanik Seva Mandal, a charitable trust. The Tribunal found that the CIT(E) had rejected the application without providing the trust with an adequate opportunity to furnish details, amounting to a violation of the principles of natural justice. The matter has been sent back to the CIT(E) for fresh adjudication after granting a proper opportunity to the assessee.
Shree Sharda Sarvajanik Seva Mandal is a charitable trust with a long history, having been registered under the Bombay Public Trust Act since 1989. The trust already held registration under Sections 12A and 80G of the Income Tax Act, 1961, allowing it to claim exemption on its income and enabling donors to claim deductions for contributions. The trust had also been regularly complying with income tax requirements by filing its returns.
Under recent amendments to the income tax law concerning charitable and religious trusts, existing registered trusts were required to re-register under a new scheme. Accordingly, Shree Sharda Sarvajanik Seva Mandal filed an application in Form 10AB seeking fresh registration under Section 12A(1)(ac)(iii) of the Act. This section deals with the process of re-registration or fresh registration for trusts that were already registered under the old provisions or had provisional registration.
