Gram Vikas Parivar Kaiyal vs. The Commissioner Of Income Tax - (Income Tax Appellate Tribunal) (28 Jul 2023)
Section 12AB of the IT Act casts mandatory duty upon Principal Commissioner to conduct enquiry about the activities of Trust in order to grant registration
MANU/IB/0363/2023
Direct Taxation
Application under Section 12AB of the Income Tax Act, 1961 was filed by the different assessees in Form No.10AB under Rule 17A of the Income Tax Rules, 1962. Rejection of application in Form 10AB under Section 12AB of the Act on the ground of non-satisfaction of genuineness of the activities of the trust is under challenge before us by different assessees.
Under Section 12AB of the Act, it is the mandatory duty cast upon the CIT(E)/Principal Commissioner to conduct an enquiry about the activities of the Trust and to verify the objects as per the Trust deed and the genuineness of the activities of the Trust upon receipt of the relevant documents furnished by the assessee alongwith application for grant of registration of the Trust. Further that, the Commissioner is required to be satisfied himself about the genuineness of the activities of the trust and also to verify that these activities are in consonance with the objects of the Trust or Institution. Despite various opportunities as per the statutory provision, the assessee failed to submit the complete set of details and therefore, satisfaction in regard to the genuineness of the activities or verification of its activities whether the same is in consonance with its objects was unable to be arrived at by the Learned CIT(E) and the application for grant of the registration of the Trust under Section 12AB of the Act stood rejected.
In order to prevent the miscarriage of justice, present Tribunal find it fit and proper to provide another opportunity of being heard to the assessee in support of his case for registration of the Trust under Section 12AB of the Act. Appeal restored to the file of the Learned CIT(E) with a direction upon him to provide a further opportunity of being heard to the assessee and to consider the documents and/or evidence which the assessee would file as per the direction issued by the CIT(E). Appeal of assessee allowed.
Tags : REGISTRATION GRANT OPPORTUNITY
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