The Tax Publishers2020 TaxPub(DT) 5191 (Pune-Trib)

INCOME TAX ACT, 1961

Section 12AA

Where assessee-trust was not accorded adequate opportunity of hearing inasmuch as CIT, just after obtaining information from the assessee, passed the order without confronting with his point of view or seeking clarification from the assessee as to carrying or non-carrying out of any charitable activities, therefore, in view of interest of justice, the order the CIT denying registration under section 12AA to the assessee, was set-aside and the matter was remanded to the CIT to decide the same afresh after allowing reasonable opportunity of hearing to the assessee.

Charitable trust - Registration under section 12AA - AO alleged no charitable activity of assessee-trust was traceable - Assessee was not accorded adequate opportunity of hearing

Assessee-trust filed application for registration under section 12AA. Accordingly, CIT called for certain details from the assessee. On perusal of such details, CIT observed that during last three financial years, the assessee did not incur any expenditure on charitable activities and thus, he was of the view that no charitable activity of the assessee was traceable. He, further observed that the assessee was not properly showing requisite interest income from FDRs. Accordingly, the CIT concluded that the assessee did not satisfy the nature of activities as charitable for enabling granting of registration under section 12AA. Held: Assessee was not accorded adequate opportunity of hearing inasmuch as CIT, just after obtaining information from the assessee, passed the order without confronting with his point of view or seeking clarification from the assessee as to carrying or non-carrying out of any charitable activities. Therefore, in view of interest of justice, the order of the CIT denying registration under section 12AA to the assessee was set-aside and the matter was remanded to the CIT to decide the same afresh after allowing reasonable opportunity of hearing to the assessee.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :



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