Shree Panchadaiva Trust vs CIT (Exemptions), Mumbai

Parties Involved

Facts Summary

The assessee, Shree Panchadaiva Trust, applied for registration under section 12AB of the Income Tax Act 1961 on 28.09.2023 in Form No. 10AB. The ld. CIT(E) observed that the assessee had already filed an application in Form No. 10AB for regularization of provisional registration u/s 12A on 05.04.2022, which was rejected on 28.10.2022 due to non-submission of required documents in the prescribed time. The ld. CIT(E) held that the facility for filing a fresh application in Form No. 10AB was open for the trust who had not filed an application within 6 months of activities or 6 months before the expiry of provisional registration. Since the assessee was not covered under both conditions, the fresh application filed by the assessee on 28.09.2023 was rejected. The assessee filed another application on 28.09.2023, which was dismissed by the ld. CIT(E) on the ground that the filing of the fresh application was not as per Circular No. 06 of 2023 dated 24.05.2023. The assessee contended that Circular No. 06 of 2023 had clearly stated that the due date had been extended till 30.09.2023 for filing Form 10AB. The ld. CIT(E) had not given the proper opportunity to the assessee.…

Legal Issues

• 1. The assessee has raised the following grounds of appeal: 1. The Appellant submits that the Learned CIT (E) has not applied his mind while perusal of the application in Form 10AB and has erred in not considering the material placed on record and the written submission made, wherein the appellant fulfills all conditions required for granting of Registration u/s 12AA. 2. The appellant submits that while denying registration u/s 12AA, the Learned CIT (E) has never held that the trust is not for religious/charitable purposes as required u/s 12A of the Income Tax Act 1961. 3. The Appellant submits that no reasonable opportunity has been granted to the appellant for being heard and the said order has been passed without issuing a show cause notice to the appellant before the rejection of the said application. Non issuance of show cause notice mentioning that the application is likely to be rejected for reasons mentioned therein, is a violation of section 12AB as well as principal of natural justice. 4. The Appellant submits that the provisional registration u/s 12AB was valid from AY 2022-23 to AY 2024-2025. The appellant had filed the application in Form 10AB on 28.09.2023 which was within 6 months before the expiry of provisional registration. The Learned CIT (E) has erroneously mentioned that the application was not filed within 6 months of activities or 6 months before the expiry of provisional registration. 5. The Appellant submits that the Learned CIT (E) has erred in not considering the circular no 6 of 2023 dated 24.05.2023 wherein clause 5 of the said circular clearly stated that the due date had been extended till 30.09.2023 where the due date for filing of Form 10AB had expired prior to the date of the said circular. 6. The Appellant submits that while processing the appellant application u/s 12AB the Learned CIT(E) has not applied his mind and he ought to have asked the appellant the requisite details and information and relevant documents rather than hurriedly rejecting the application on the technical ground without considering the applicability of circular no 6 of 2023 dated 24.05.2023 7. The Appellant submits that The Learned CIT (E) while processing the application for registration ought to have given an opportunity to the appellant to reply the queries if any. 8. The Appellant submits that The Learned CIT (E) has not appreciated and considered the entire facts of the case in establishing the genuineness of the activities of the trust and has not carried out proper enquiry. The Learned CIT(E) has rejected the application for registration u/s 12AB without giving opportunity of being heard in the said matter which is a violation of provisions of section 12AB as well as principal of natural justice. 9. The Appellant submits that The Learned CIT (E) has not followed the procedures laid down in section 12AB for granting of Registration which is a violation of provisions of section 12AB as well as principal of natural justice. 10. The Appellant challenges the action of The Learned CIT (E) in rejection of application for seeking registration u/s 12AA of the Income Tax Act 1961 is violation of principal of natural justice and is contrary to the provisions of the law and facts of the case. Hence. the same be kindly directed to grant registration from the year when the application is made. 11. The Appellant craves leave to add, alter, omit, change, amend or modify any of the aforesaid grounds of appeal as the occasion may arise or demand.

Judgment Outcome

Decided in favour of Assessee.

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