2023 (5) TMI 415 - AT - Income Tax

Registration u/s 12AA denied - Non verifying the documents submitted by the assessee - HELD THAT - CIT(E) erred in not considering the submissions, documents and details furnished by the assessee trust. Therefore to meet the ends of justice and also in the Principle of Natural Justice, we deem it fit to set aside impugned order and remit the matter back to the file of Ld. CIT(E) with a direction to reconsider the application filed by the assessee in Form No. 10A alongwith all the documents and evidences filed by the assessee trust by giving one more opportunity to the assessee to submit its case - Appeal filed by the Assessee is allowed for statistical purpose

Summary

Issues involved:
The judgment involves the denial of registration under section 12AA of the Income Tax Act, 1961 by the Ld. Commissioner of Income Tax [Exemption], Ahmedabad.

Summary:

Issue 1: Delay in filing appeal during COVID-19 pandemic

The appeal was filed by the assessee against the order denying registration under section 12AA of the Act. The registry noted a delay of 143 days in filing the appeal, which fell under the COVID-Pandemic situation. Citing a Supreme Court judgment extending time limits for filing appeals due to the pandemic, the Tribunal accepted the appeal for adjudication.

Issue 2: Rejection of registration under section 12AA

The assessee, a Public Charitable Trust, applied for registration under section 12AA with the object of running educational institutions and other charitable activities. The Ld. CIT[E] rejected the application citing non-submission of required documents and lack of verification of trust activities. The Tribunal found that the Ld. CIT(E) erred in not considering the documents submitted by the assessee and remitted the matter back for reconsideration, directing the Ld. CIT(E) to provide another opportunity for the assessee to submit its case for registration u/s. 12AA.

In conclusion, the Tribunal allowed the appeal filed by the assessee for statistical purposes, setting aside the order denying registration and remitting the matter back to the Ld. CIT(E) for reevaluation based on the documents and submissions provided by the assessee.