Charitable trust registration under section 12AB restored after inadequate hearing before CIT(Exemptions)

5-Second Takeaway

The Tribunal set aside the impugned order on section 12AB registration because the assessee had not been given adequate opportunity to place and explain the full material. The matter was restored to the CIT(Exemptions) for fresh consideration of the Rajasthan Public Trust Act registration, the earlier IT Act registration, the trust deed, financial statements and other already furnished documents.

The dispute concerned an application by a charitable trust for registration under section 12AB. The assessee complained that the material relevant to its claim had not been fully considered because it was not afforded adequate opportunity of hearing.

On that basis, the Tribunal held that the order could not be sustained. It found it appropriate to set aside the impugned decision and send the matter back for a fresh look so that the complete record could be examined.

The CIT(Exemptions) was directed to consider the registration certificate under the Rajasthan Public Trust Act dated 25 November 1974, the earlier registration granted under the Income-tax Act by order dated 7 April 2022, and the trust deed, financial statements and other documents already placed on record.

The application was therefore restored to the CIT(Exemptions) for fresh adjudication in accordance with law.