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2022 (11) TMI 1054 - AT - Income TaxExemption u/s 11 - application for registration of the trust u/s 12AA - application filed by the assessee for the reason that the trust is established for the benefit of a particular community namely "Rajput" and not for general public - HELD THAT:- It is sufficient if the intention is to benefit a section of the public as distinguished from a specified individual is present". The assessee placed reliance on the case of Ahmedabad Rana Caste Association v. CIT [1971 (9) TMI 8 - SUPREME COURT] wherein it was held that "an object beneficial to a section of the public is an object of general public utility. But the section of the community sought to be benefited must be sufficiently defined and identifiable by some common quality of a public order or impersonal nature. By way of the above submission, the assessee submitted that CIT(Exemption) never questioned the genuineness of the activities of the Trust. He has only observed that "the objects of the Trust show that the Trust is established for the benefit of a particular community". Assessee submitted that insufficient opportunity of hearing was granted by CIT(Exemption). The assessee submitted that in the order CIT(Exemption) mentioned that he was in receipt of the submission in reply to his notices. No show cause notice was issued in response to the written submission filed with CIT (Exemption), proposing to reject the assessee's application and no opportunity was given to the assessee to rebut the same. In absence of any show cause notice issued by CIT (Exemption), the assessee was unable to place the above judicial precedents before Ld. CIT(Exemption) for his consideration, which directly support the case of the assessee as a response to the reasons for which the application was rejected by CIT (Exemption). DR placed reliance on the observations made by CIT (Exemption) in the order. In our view, in the interest of justice, we are restoring the file to the CIT (Exemption) for fresh adjudication, after giving due opportunity of hearing to the assessee to present its case on merits. Appeal of the assessee is allowed for statistical purposes.
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