2023 (1) TMI 530 - AT - Income Tax

Registration u/s 80G(5) denied - Non adjudication of appeal by assessee - HELD THAT - This appeal was fixed for hearing for the first time on 19/10/2022, none appeared on behalf of the assessee. Hence adjournment to 08/12/2022, again none appeared on behalf of the assessee, though notice was served by RPAD. Even though the appeal is adjourned to 09/01/2023. Again none appeared on behalf of the assessee. We find no authorization is given by the Assessee Trust to any Authorized Representative and no details has raised in the grounds of appeal, relevant documents or Paper Book not filed before us. In the absence of the same, we are not in a position to adjudicate the grounds raised by the assessee. Though the assessee is given ample opportunities, the assessee is not chosen to adjudicate its appeal. Therefore the same is dismissed in limine. Appeal filed by the Assessee is hereby dismissed.

Summary

Issues:
1. Denial of registration under section 80G(5) of the Income Tax Act, 1961.
2. Lack of response and incomplete submission of details by the assessee.
3. Trust's objects restricted to a particular community.
4. Non-submission of registration certificate u/s. 12AA.
5. Failure to satisfy genuineness of activities for approval u/s. 80G(5).
6. Grounds of appeal raised by the assessee.
7. Non-appearance and lack of authorization on behalf of the assessee.

Analysis:
The appeal was filed against the denial of registration under section 80G(5) of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemptions), Ahmedabad. The assessee, a Trust, failed to respond adequately to requests for details, leading to the disposal of the registration application based on available records. The trust's objects were found to be restricted to a specific community, "Leuva Patel," rather than the general public, rendering it ineligible for approval under section 80G(5)(iii) of the Act. Additionally, the trust did not submit the registration certificate u/s. 12AA, which is a prerequisite for approval u/s. 80G(5). The Commissioner highlighted the requirement to verify the genuineness of the trust's activities and their alignment with its objects, citing relevant case law.

The grounds of appeal raised by the assessee included contentions regarding the refusal of registration under section 80G(5) and the failure to consider the details provided in response to the Commissioner's requests. The appeal hearing was scheduled multiple times, but the assessee did not appear or provide authorization to any representative. Consequently, the Tribunal was unable to adjudicate on the grounds raised due to the absence of relevant documents or submissions. Despite ample opportunities given to the assessee, the appeal was dismissed in limine due to the lack of participation and non-compliance with procedural requirements.

In conclusion, the Tribunal upheld the dismissal of the appeal, emphasizing the importance of compliance with procedural and evidentiary requirements in seeking registration under section 80G(5) of the Income Tax Act, 1961. The judgment underscores the significance of providing complete and genuine information to support the application for approval, as well as the necessity of active participation in the appeal process to substantiate claims and address concerns raised by the tax authorities.