Matter restored back to CIT(E) for fresh adjudication on applications filed under 12AB & 80G- ITAT Ahmedabad

Facts of the Case

The CIT(E) rejected the applications for registration under Section 12AB and approval under Section 80G(5) of the Act, primarily on the grounds that the applications were filed beyond the prescribed time limit, and the assessee failed to submit relevant documentary evidence within the assessment proceedings. Aggrieved by the order of CIT(E) the assessee is in appeal before this court.

During the course of hearing before us the assessee submitted a paper book containing supporting documents, including:

• Supporting evidence of expenses incurred for charitable activities;
• Documentary proof of activities carried out by the trust;
• Bank statements; and
• Audit reports and income tax returns for FY 2022-23 and FY 2023- 24.

Furthermore, Circular No. 07/2024 dated 25.04.2024, issued by the Central Board of Direct Taxes (CBDT), has extended the due date for filing Form No. 10A/10AB to address the practical difficulties faced by taxpayers and stakeholders. This relaxation acknowledges the procedural challenges that taxpayers have encountered. In light of this beneficial circular, the assessee’s delayed filing of Form 10AB needs to be reconsidered by the CIT(E).

Verdict of the Tribunal

Considering the totality of the facts, we are of the view that the ends of justice would be met if the matter is restored to the file of CIT(E) for fresh adjudication. The CIT(E) is directed to examine the evidence submitted by the assessee and decide the matter afresh, after providing due opportunity of being heard.

Disclaimer: 

The above article is based upon the ruling of the Hon'ble ITAT and is meant for educational purposes only. Readers are requested to act diligently and under consultation with a professional before applying the information contained in this article. For any support, mail at: support@taxwink.com