Registration u/s 12A declined due to byelaws/memorandum not signed/certified by Authorized Signatory of trust. ITAT set aside the order of CIT(exemption)
This is a classic example where Tax Authority failed to consider that the Income Tax Act is a beneficial and not a penal legislation and CIT(A) could have asked for the certification, but abusing his power CIT(E) dismissed the application on a technical reason in violation of principle of natural justice.
ABCAUS Case Law Citation:
ABCAUS 3230 (2020) (01) ITAT
In the instant case, an appeal was filed by the Assessee against the impugned order passed by the CIT (Exemptions) refusing grant of registration under section 12A of the Income Tax Act, 1961 (the Act).
The assessee was a charitable trust which had filed an application for registration under section 12A(1) of the Act in Form 10A with the jurisdictional CIT (Exemptions).
However the CIT (Exemptions) rejected the application of the assessee on a technical reason observing that the copy of the byelaws/memorandum, was not signed/certified by the Authorized Signatory of the trust.
Thus, the CIT(E) considering it non-compliance to Rule 17A (1)(a) & 17A(1)(c) treated the application u/s 12A(1) as deficient.
Aggrieved by the approach of the CIT(exemption), the assessee had filed the instant appeal.
The Tribunal found that the applicant society had furnished all the documents as sought for by the CIT (Exemptions), for registration under section 12A of the Act, but the documents so furnished, were without the signature of the authorized signatory of the society/trust which was the sole reason for rejecting the application for registration under section 12A of the Act.
The Tribunal set aside the order of the CIT (Exemptions) and restored the matter to his file with a direction to re-decide the same afresh. The assessee was also directed to furnish the documents duly signed by the authorized signature of the society/trust.
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