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2024 (9) TMI 1373 - AT - Income TaxRejecting the registration of the assessee trust u/s.12AB and recognition u/s 80G - HELD THAT - Application of the assessee for registration u/s. 12AB was rejected on the objection of fact that the assessee is not registered under the Rajasthan Public Trust Act, 1959, for the assessee has made an application for registration and as regards the genuineness of activities the observation made by ld. CIT(E) is curable in nature and therefore, considering the arguments of the parties we are of the considered view that so far the issue of registration u/s. 12AB of the Act the assessee require one more opportunity to represent the correct fact and produce the registration certificate under RPT Act. Thus, looking to the interest of justice and considering the prayer of assessee submitted that the assessee be given a chance to defend the issues on its merit before the ld. CIT(E)and the observation made are curable in nature we considered the prayer of the assessee to remind the case to the file of CIT(E) for making a decision a fresh and thus we set aside the order dated 22.03.2024 passed for rejecting the registration of the trust u/s. 12AB with a direction to the assessee to produce all the related to the issue. Appeal of the assessee allowed for statistical purpose.
Issues Involved:
1. Rejection of application for registration under Section 12AB of the Income Tax Act. 2. Rejection of application for approval under Section 80G of the Income Tax Act. 3. Cancellation of provisional registration and approval granted under Sections 12A and 80G. Issue-wise Detailed Analysis: 1. Rejection of Application for Registration under Section 12AB: The assessee filed an online application on 30.09.2023 seeking registration under Section 12AB of the Income Tax Act. The CIT(E) rejected the application on the grounds that the assessee was not registered under the Rajasthan Public Trust Act, 1959, and had not proven the genuineness of its activities. The CIT(E) highlighted discrepancies in the documents submitted, including the absence of a ledger account, copy of agreement, grant anudan receipts, and details of fund utilization. Additionally, the applicant had not shown a gifted property in the balance sheet for FY 2022-23, which was present in previous years, leading to a conclusion of misrepresentation. The assessee argued that it was registered under the Rajasthan Gaushala Act, 1960, and not required to register under the Rajasthan Public Trust Act, 1959. The Tribunal noted that the objections raised by the CIT(E) were curable and directed the assessee to produce the necessary documents and registration certificate under the Rajasthan Public Trust Act. Consequently, the Tribunal set aside the CIT(E)'s order and remanded the case for a fresh decision. 2. Rejection of Application for Approval under Section 80G: The CIT(E) rejected the application for approval under Section 80G on the grounds that the assessee was not registered under Section 12AB and the application was not filed within the stipulated time. The assessee contended that the application was timely as it was filed within six months of the expiry of the provisional registration. The Tribunal, considering the recent relaxation by the board regarding the application timeline, deemed it appropriate to set aside the CIT(E)'s order and remand the case for a fresh decision, aligning it with the decision on the Section 12AB registration. 3. Cancellation of Provisional Registration and Approval: The CIT(E) also canceled the provisional registration and approval granted under Sections 12A and 80G, citing non-compliance with the requirements for permanent registration and approval. The assessee argued that the CIT(E) did not have the authority to cancel the provisional registration and approval from inception, but only from the date of the order rejecting the permanent registration and approval. The Tribunal did not specifically address this contention but remanded both issues for fresh consideration by the CIT(E). Summary: The Tribunal addressed two appeals filed by the assessee against the CIT(E)'s orders rejecting the application for registration under Section 12AB and approval under Section 80G, and canceling the provisional registration and approval. The Tribunal found that the objections raised by the CIT(E) were curable and directed the assessee to submit the necessary documents. The Tribunal set aside the CIT(E)'s orders and remanded the cases for fresh decisions, allowing the appeals for statistical purposes.
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