2023 (8) TMI 376 - AT - Income Tax

Exemption u/s 11 - assessment of trust - application u/s 12AB rejected - Despite various opportunities as per the statutory provision, the appellant failed to submit the complete set of details and therefore, satisfaction in regard to the genuineness of the activities or verification of its activities whether the same is in consonance with its objects was unable to be arrived at by the CIT(E) and the application for grant of the registration of the Trust u/s 12AB of the Act stood rejected - HELD THAT - We, in order to prevent the miscarriage of justice, find it fit and proper to provide another opportunity of being heard to the appellant in support of his case for registration of the Trust u/s 12AB. Upon considering the entire set of documents and upon affording an opportunity of being heard to the appellant the Ld. CIT(E) to dispose of the application for grant of registration of the Trust under Section 12AB of the Act with a reasoned order.

Summary

Issues involved:
The judgment involves multiple appeals challenging the order of the Commissioner of Income Tax (Exemptions) under Section 12AA of the Income Tax Act, 1961 for Assessment Year 2022-23.

Issue 1: Failure to Furnish Required Details
The appellant failed to provide essential details/documents despite repeated notices, leading to the rejection of the application for registration under Section 12AB of the Act.

The Commissioner is obligated to verify the genuineness of the activities of the Trust and ensure they align with its objectives. However, due to the appellant's non-compliance in submitting necessary information, the Commissioner was unable to ascertain the genuineness of the activities, resulting in the rejection of the registration application.

Issue 2: Request for Another Opportunity
During the appeal hearing, the appellant's counsel acknowledged the inability to gather all documents promptly and requested another chance to submit the required evidence to satisfy the Commissioner regarding the Trust's activities' genuineness.

In light of preventing a miscarriage of justice, the Tribunal granted the appellant another opportunity to be heard by the Commissioner. The appellant was directed to submit the necessary documents for consideration, with a clear instruction that failure to cooperate may lead to the Commissioner passing orders as per the law.

Decision:
The Tribunal allowed the assessee's appeal and directed the issue back to the Commissioner for reevaluation with the newly submitted documents. It was emphasized that cooperation with the Commissioner was essential, and failure to do so would result in orders being passed strictly in accordance with the law.

The decision in one specific appeal for Assessment Year 2022-23 was declared to apply to all other related appeals, ultimately resulting in the allowance of all appeals collectively.

This comprehensive judgment was pronounced on 21/07/2023 by the Appellate Tribunal ITAT AHMEDABAD, with the aim of ensuring a fair and just reconsideration of the Trust's registration application under Section 12AB of the Income Tax Act, 1961.