Case summary, Income Tax

Whether the order of CIT (exemptions) rejecting the grant of registration under section 12AA of the Income Tax Act to the assessee valid or not?

Case: M-S. SeyyIidmadani charitable trust vs the CIT (EXEMPTIONS), ITAT Bangalore

Listen to the case summary M-S. SeyyIidmadani charitable trust vs the CIT (EXEMPTIONS), ITAT Bangalore here


  1. The assessee is a trust which came into existence vide deed of trust dated 7.1.1981.
  2. Its objects are enumerated as providing education.
  3. The assessee applied for grant of registration u/s 12AA of the Act in Form-10A on 12.03.2019.
  4. The assessee also applied for grant of approval u/s 80G(5)(vi) on 12.03.20
  5. The CIT(Exemption) rejected both the application for registration under section 12AA and the application for grant of approval u/S. 80G(5)(vi)
  6. The assessee hence filed this appeal.

Revenue’s arguments

The Revenue argued that Assessee failed to provide certain details requested vide notice dated 20.2.2019. This led the revenue to think that the assessee was not interested in pursuing the application further and the CIT(E) was not in a position to independently verify the object of the trust and the genuineness of its activities, hence, both the applications were rejected.

Assessee’s arguments

The Assessee argued that the notice dated 20.2.2019 was never received by the assessee.

Tribunal’s holding

  1. The Tribunal held that though the notice was issued on 20.2.2019, there was no mention of its service.
  2. Moreover, the time limit for passing orders under section 12AA would elapse on 31.3.2019. Issuing a notice asking for details on 20.2.2019 did not give assessee enough time or opportunity of being heard.
  3. Appeal filed by the assessee was allowed and the CIT(E) was directed to hear the matters afresh

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