An appeal has been lodged by the assessee against the order of the Commissioner of Income Tax (Exemption), Pune ("CIT(E)") dated 27th September 2023, contesting the rejection of registration under section 12AB of the Income Tax Act. The grounds of appeal indicate the primary contention of the assessee revolves around the denial of registration to the assessee-trust by the CIT(E).
During the hearing, no representative appeared on behalf of the assessee. However, the submissions of the Learned Deputy Commissioner of Income Tax (DR) and the available materials on record were duly considered, and the case was deliberated upon on its merits.
The order of the CIT(E) reveals that certain details were requested from the assessee to verify the authenticity of the trust's objectives and the charitable activities it purported to undertake. Despite opportunities provided by the department, the assessee failed to furnish the necessary clarifications or justifications in response to the issues raised in the show-cause notice dated 4th September 2023. Consequently, the CIT(E) concluded that without satisfactory evidence, it was not feasible to ascertain the genuineness of the trust's activities or its compliance with applicable laws, leading to the rejection of the application.
The appellate authority observed that the purpose behind provisions such as registration under section 12AB and exemption under section 80G of the Income Tax Act is rooted in the Directive Principles of State Policy enshrined in the Constitution of India. These provisions are designed to facilitate the establishment of public charitable trusts to promote societal welfare and align with the government's efforts to ensure the welfare of all citizens.
Recognizing the socio-economic welfare objectives underlying such provisions, the appellate authority deemed it imperative to afford the assessee another opportunity to present relevant details before the CIT(E) and argue their case on its merits. Consequently, the order of the CIT(E) was set aside, and the matter remitted back to reconsideration, with a directive to adhere to the principles of natural justice.
In conclusion, the appeal of the assessee was allowed for statistical purposes, emphasizing the importance of affording due process and opportunities for presenting evidence in matters concerning charitable registrations under the Income Tax Act.
Topic- Ahmednagar Cancer Soceity Versus Commissioner of Income Tax
Court-ITAT-Pune
Date-22/12/2023
Team Taxonation
Comment: