The case titled ‘Lions Club Sonipat Charitable Trust vs CIT(E), Chandigarh’ pertains to an appeal against the rejection of a Section 12AA registration application by CIT(E), Chandigarh. The final tribunal order was pronounced on 2022-09-15. This case was filed to appeal against the order passed under Section 12AA of the Income Tax Act, 1961.
Case Number: ITA 511/DEL/2021
Appellant: Lions Club Sonipat Charitable Trust, Sonipat
Respondent: CIT(E), Chandigarh
Assessment Year: –
Case Filed On: 2021-05-13
Order Type: Final Tribunal Order
Date of Order: 2022-09-15
Pronounced On: 2022-09-15
Judges: Shamim Yahya, Accountant Member and Anubhav Sharma, Judicial Member
This appeal in ITA No. 511/DEL/2021 is filed by Lions Club Sonipat Charitable Trust against the order of the Commissioner of Income Tax (Exemption), Chandigarh, dated 17.03.2021, rejecting the grant of registration application under Section 12AA of the Income Tax Act, 1961 (the Act).
The assessee, Lions Club Sonipat Charitable Trust, filed Form No.10A on 24.06.2020 seeking registration under Section 12AA of the Act. The CIT(E) noted that the application revealed the applicant is a trust formally created on 18.02.2019. After referring to various queries raised to the assessee, the CIT(E) observed that the reply received through the ITBA portal was examined thoroughly.
The CIT(E) rejected the registration request, citing the following reasons:
The assessee, represented by Ms. Rano Jain, Advocate, argued that they were not given an opportunity to submit pleadings on the issues raised by the CIT(E). It was also mentioned that the intervening period of the application was affected by the Covid pandemic, and the limitation period was extended by the Supreme Court.
The tribunal, after hearing both parties, noted that no adverse inference was made by the CIT(E) for lack of material supplied. The objection raised by the DR was found unsustainable. The tribunal observed that the CIT(E)’s denial was based on the treatment of donations to corpus funds as income and the subsequent tax liabilities.
In the interest of justice, the tribunal remitted the issue back to the CIT(E) for reconsideration, directing the CIT(E) to consider the issue afresh after giving an opportunity of hearing to the assessee.
In conclusion, the tribunal pronounced in the open court that the appeal filed by Lions Club Sonipat Charitable Trust in ITA number 511/DEL/2021 is allowed for statistical purposes, remitting the case back to CIT(E) for reconsideration.
Order pronounced in the open court on: 15/09/2022.
Sd/- (ANUBHAV SHARMA) JUDICIAL MEMBER
Sd/- (SHAMIM YAHYA) ACCOUNTANT MEMBER
Delhi; Dated: 15.09.2022.
f{x~{tÜ? f{x~{tÜ? f{x~{tÜ? f{x~{tÜ?
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi.
Date of dictation: 06.09.2022
Date on which the typed draft is placed before the dictating member: 07.09.2022
Date on which the typed draft is placed before the other member: 08.09.2022
Date on which the approved draft comes to the Sr. PS/PS: 09.09.2022
Date on which the fair order is placed before the dictating member for pronouncement: 10.09.2022
Date on which the fair order comes back to the Sr. PS/PS: 11.09.2022
Date on which the final order is uploaded on the website of ITAT: 12.09.2022
Date on which the file goes to the Bench Clerk: 12.09.2022
Date on which the file goes to the Head Clerk: 13.09.2022
The date on which the file goes to the Assistant Registrar for signature on the order: 13.09.2022
Date of dispatch of the order: 14.09.2022.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform