Assessee-trust filed an application for seeking registration under section 12AA and also sought for registration under section 80G of the Act. CIT( E ) called for certain information for verification of genuineness of activity of assessee vide notice issued through Income-tax website portal . The assesseee submitted a note on activity which was general in nature without giving any specific details as to who were beneficiaries of trust and what activities were carried out .CIT( E) rejected the application . On appeal the Tribunal held that since CIT( E ) straightaway rejected application for registration under section 12AA without giving an opportunity of being heard to assessee, same was not justified and matter was remanded back to CIT( E ) for deciding matter afresh after providing adequate opportunity of hearing to assessee. (AY. 2022-2023 )
Braingyan Foundation v. CIT ( E) (2023 ) 200 ITD 138 ( Mum)( Trib)
S. 12AA : Procedure for registration –Trust or institution-Natural justice – If the CIT( E ) is not satisfied with the documents supplied with by the assessee , adequate opportunity must be given before rejection of application – Matter remanded [ S. 80G ]