ITAT restores matter to CIT(E) as his order was non-speaking order
Fact and issue of the case
The appeal filed by this assessee concerns the Pune DIN & Notice No. ITBA/EXM/F/EXM45/ 2022-23/1046485806(1), dated October 27,2022, which relates to proceedings under Section 12AA of the Income Tax Act, 1961 (the “Act”). Case received two calls. None show up at the assessee’s request. Ex-parte proceedings are thus taken.
It becomes clear during the hearing, with the Revenue side’s competent assistance, that the assessee’s only substantive complaint challenges the accuracy of both the lower authorities’ actions in denying registration under Section 12A(1)(ac) of the Act on the grounds that it had not submitted a copy of the trust deed and other pertinent documentation. Additionally, the assessee trust was established with only one caste in mind, the “Bramhakshatriya Community,” and as a result, its purpose cannot be construed as charitable giving for the wider public. Therefore,The application of the assessee trust was denied by the learned CIT(E).
Observation of the court
During the hearing, the learned CIT-DR found it difficult to contest the obvious fact that the CIT(E)’s contested order makes no mention of the assessee’s charitable activities, which are alleged to have been carried out according to its explanation during the pertinent proceedings and those pleaded in the registration application under Sec.12AC of the Act. Given the circumstances and the fact that theCIT(E)’s order is also largely non-verbal, we believe it is appropriate to return the assessee’s substantive complaint to the relevant authority for proper resolution in accordance with the law, ideally within three opportunities for hearing. arranged suitably.
The appeal of this assessee is granted in the grounds stated above for statistical purposes.
Order issued on March 23, 2023, in front of the whole court.
In the result, appeal of the assessee is allowed and ruled in favour of the assessee