Denial of Registration u/s 12AB remanded for de novo consideration when notices were issued at very close intervals and hearing concluded within a very short span of time
In a recent judgment, ITAT has quashed the order passed by CIT(E) denying Registration u/s 12AB as order was passed in hurry without sufficient opportunity.
ABCAUS Case Law Citation:
ABCAUS 3803 (2023) (09) ITAT
In the instant case, the assessee had challenged the order passed by the Commissioner of Income Tax (Exemption) in rejecting the application in form 10AB towards registration of charitable trust u/s 12AB of the Income Tax Act, 1961 (the Act).
The case of the appellant was that the CIT(Exemption) had overlooked and summarily rejected the application for grant of registration u/s 12A and had not considered, the documents submitted by the appellant during the proceedings u/s 12AB of the Act. It was contended that CIT(E) dismissed the application of the assessee in a summary manner without granting adequate opportunity of hearing to the assessee. Accordingly, it was prayed that the matter be restored to the file of the CIT(E) for de novo consideration.
The Tribunal observed that the assessee had filed various details before the CIT(E) in support of its case. However, the CIT(E) dismissed the application of the assessee for registration under Section 12AB of the Act by holding that the details filed by the assessee are “peripheral” in nature and the response filed by the assessee is “cryptic” in nature.
The ITAT observed that CIT(E) while dismissing the application for registration filed by the assessee had not specifically pointed out which specific details had been called for and which were not filed by the assessee. The CIT(E) had summarily dismissed the application filed by the assessee by observing that the applicant failed to file documentary evidences to enable him to satisfy himself about the genuineness of the activities of the Trust and to verify whether the activities of the applicant are in consonance with it’s objects.
Further, the ITAT observed that the CIT(E) had issued notices to the applicant at very close intervals (within a week) and concluded the hearing within a very short span of time.
The Tribunal restored the matter to the file of the CIT(E) for de novo consideration after giving due opportunity of hearing to the assessee and thereafter pass the order in accordance with law.
Accordingly, the appeal of the assessee was allowed.
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