2023 (5) TMI 414 - AT - Income Tax

Rejecting application in form 10AB u/s 12AB - non satisfaction of genuineness of the activities of the trust - assessee submitted that if given an opportunity of hearing, he shall diligently comply with the same and produce all required documents to the satisfaction of Ld. CIT(Exemption) in support of the eligibility of the applicant s application for grant of registration of the Trust under Section 12AB - HELD THAT - As in the interest of justice, the case is being set-aside to the file of Ld. CIT(Exemption) for denovo consideration of the application of the assessee Trust for registration under Section 12AB of the Act and to pass appropriate orders after considering the documents filed by the applicant / assessee in accordance with law. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
The appeal against the order passed by the Ld. CIT(Exemption), Ahmedabad in Application No. CIT(E)- Ahmedabad/2022-23/12AA/11051 for Assessment Year 2022-23.

Issue 1: Rejection of Application u/s 12AB of the Income Tax Act

The Assessee filed an application for registration of Trust under Section 12AB of the Act, but the Ld. CIT(Exemption) dismissed the application citing incomplete details provided by the Assessee. The CIT(Exemption) emphasized the necessity to establish the genuineness of the trust's activities and their alignment with the trust's objects. The Commissioner referred to the requirement under Section 12AB to ensure compliance with relevant laws. The Assessee's failure to provide essential documentary evidence led to the rejection of the application.

Issue 2: Appeal and Set-Aside for Denovo Consideration

The Assessee appealed the rejection, arguing eligibility for registration under Section 12AB and requesting a fair opportunity to present supporting documents. The Counsel for the Assessee highlighted the need for a proper hearing and the submission of all required documents to demonstrate eligibility. The Ld. D.R. did not object to setting aside the matter for denovo consideration by the Ld. CIT(Exemption) in the interest of justice. Consequently, the case was remanded to the Ld. CIT(Exemption) for a fresh review of the application and a decision based on the documents provided by the Assessee in accordance with the law.

Conclusion:
The appeal was allowed for statistical purposes, and the matter was remanded to the Ld. CIT(Exemption) for a fresh assessment of the application for registration under Section 12AB of the Act.