Shri Tuvad Shantinathji Jain Derasar Nu Trust, Patan V. The CIT (Exemprions), Ahmedabad

ITA 555/AHD/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6496 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 02-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside
• Section: 12AA

Judgement Text

आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ B’’ BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT And SHRI WASEEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 555/AHD/2019 िनधाᭅरण वषᭅ/Asstt. Year: Nil Shri Tuvad Shantinathji Jain Derasar Nu Trust, Vill: Tuvad, Tal: Sankhleshwer, Dist. Patan-384241. PAN: AAJTS5064R Vs. C.I.T., (Exemption) Ahmedabad. (Applicant) (Respondent) Assessee by : Shri S.N. Divetia, A.R Revenue by : Shri Aarsi Prasad, C.I.T.D.R सुनवाई कᳱ तारीख/Date of Hearing : 11/11/2021 घोषणा कᳱ तारीख /Date of Pronouncement: 14/12/2021 आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: In the instant case, the appeal was filed by the assessee against the order passed by the learned Commissioner of Income Tax (Exemptions), Ahmedabad dated 21.02.2019 rejecting the application for registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 (hereinafter referred as “the Act”) ITA no.555/AHD/2019 A.Y. Nil 2 2. The assessee has raised the following grounds of appeal: 1.1 The order passed u/s. 12AA(l)(b)(ii) on 21-2-2019 by CIT(Exem.)-Abad declining to register the appellant Trust under IT Act, 1961 is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Ld. CIT(Exem.) has grievously erred in law and or on facts in rejecting the application for registration u/s 12AA(l)(b)(ii) for the reason that genuineness of its activities could not be verified. 2.2 That in the facts and circumstances of the case as well as in law, the Ld. CIT (Exem.) ought not to have rejected the application for registration u/s 12AA(l)(b)(ii) for the reason that genuineness of its activities could not be verified. 2.3 The Ld. CIT(A) ought to have been given opportunity to the appellant to clarify the confusion about the name of the Trust. The appellant should have been informed about the said mistake and allowed to rectify the PAN card. It is, therefore, prayed that the additions upheld by the CIT( Exem.) may kindly be deleted. 3. The assessee filed an application for registration under section 12AA(1)(b)(ii) of the Act on 1-08-2018 with the ld. CIT (Exemptions). The ld. CIT (Exemptions) issued notices to the assessee calling for certain details regarding its application for registration under section 12AA of the Act. But the assessee made only part compliance vide letters dated 11-12-2018 and 9-2-2019. 4. It was also observed by the ld. CIT(E) that the name of the applicant being assessee appearing in the registration application was also not matching with the trust deed filed by it. On question about the mismatch in the name, the assessee failed to make any reply. In the absence of necessary details, the ld. CIT (Exemption) rejected the application moved by the assessee for registration under section 12AA of the Act by observing that the activities of the assessee are not charitable/ genuine. 5. Being aggrieved by the order of the ld. CIT (Exemptions), the assessee is in appeal before us. 6. The learned AR before us filed a paper book running from pages 1 to 77 and submitted that all the necessary details were filed by the assessee before the ld. ITA no.555/AHD/2019 A.Y. Nil 3 CIT-E as evident from the paper book. But the ld. CIT-E without considering the same rejected the application for registration. The learned AR further submitted that the matter can be restored back to the ld. CIT-E for necessary verification and fresh adjudication as per the provisions of law. 7. On the other hand, the learned DR raised no objection if the matter is set aside to the ld. CIT-E for fresh examination as per the law. 8. We have heard the rival contentions of both the parties and perused the materials available on record. From the preceding discussion, we find that the ld. CIT (Exemptions) has rejected the application for registration under section 12AA of the Act for want of details and mismatch in the name of the assessee. Nevertheless, there were certain details which were filed by the assessee before the ld. CIT-E which are available in the paper book but it appears that the same has not been considered. However, in the interest of justice and fair play, we set aside the issue to the file of the ld. CIT-E for fresh/ de-novo adjudication as per the provisions of law. Hence, the grounds of appeal of the assessee are allowed for the statistical purposes. 9. In the result, the appeal filed by the assessee is allowed for the statistical purposes. Order pronounced in the Court on 14/12/2021 at Ahmedabad. Sd/- Sd/- (RAJPAL YADAV) (WASEEM AHMED) VICE PRESIDENT ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 14/12/2021 Manish