SUGHAR SINGH MEMORIAL SHIKSHA PRASAR SAMITI,SAIFAI vs. CIT(E), LUCKNOW

The facts of the case, in brief, are that the assessee society applied for registration u/s 12A(a) of the Act with CIT (Exemption) vide application dated 31/03/2019. The ld. CIT (Exemption) issued a letter dated 29/08/2019 to the assessee calling for specific queries regarding the application for registration u/s 12A for compliance on 17/09/2019. On 09/09/2019, adjournment request was received and the next date was fixed on 25.09.2019. On 19.09.2019, assessee’s counsel filed a reply through speed post. Subsequently a deficiency letter was issued and sent on the e-mail of the applicant, on 23.09.2019 fixing the date for compliance on 25.09.2019, but no reply to this deficiency letter was received from the applicant, therefore, the ld. CIT (Exemption) rejected the application of the assessee for registration u/s 12A(a) of the Act on the ground that applicant has failed to make necessary statutory compliance and also failed to provide necessary satisfaction with regard to its objects and genuineness of its activities.

The ld. AR at the outset submitted that deficiency letter as issued by the ld. CIT(Exemption) required the assessee to comply with the queries within two days which was not possible due to the fact that it was difficult for the assessee to travel and bring all books of account and other documents to Lucknow and therefore, it was prayed that another opportunity may be granted to assessee to present its case. The ld. DR, however, relied on the orders of the ld. CIT(Exemption). 4. We have heard the rival parties and have gone through the material placed on record. We noted that ld. CIT(Exemption) has rejected the application of the assessee for registration u/s 12AA of the I.T. Act. From the order of ld. CIT (Exemption), it is apparent that the ld. CIT (Exemption) passed the order and rejected the application of the assessee for registration u/s 12A of the Act for failure of the assessee to provide documents and books of account on the fixed date. We find that this period of two days for making compliance is too short, therefore, in these facts and circumstances, we feel that one more opportunity should be given to the assessee to explain its case before the ld. CIT (Exemption) as the assessee has not been given proper and sufficient opportunity of being heard. We, therefore, in the interest of justice, set aside the order of the ld. CIT (Exemption) and restore the matter to his file with the direction to consider the application of the assessee for registration u/s 12A, after giving proper and sufficient opportunity of being heard to the assessee and to decide it afresh expeditiously, preferably within a period of two months from the date of passing of this order. The assessee is also directed to cooperate with the proceedings and should provide the material / clarifications as asked for by the ld. CIT (Exemption) at the earliest.

In the result, the appeal of the assessee stands allowed for statistical purposes. (Order pronounced in the open court on 05/02/2020)