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Facts
The assessee's application for grant of registration u/s 12A(1)(ac)(iii) and 80G was rejected by the CIT(A) and provisional registration cancelled due to non-prosecution. The assessee stated that they did not receive notice, rendering the non-compliance beyond their control.
Held
The Tribunal held that the CIT(E) decided the issue without appreciating the facts and that the assessee had reasonable cause for not participating. The matter was restored to the CIT(E) for a fresh decision after affording adequate opportunity.
Key Issues
Whether the assessee had reasonable cause for non-prosecution of their application for registration, and if the CIT(E) had properly considered the facts before rejecting it.
Sections Cited
12A, 80G, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘F’ BENCH,
Before: SHRI MAHAVIR SINGH, & SHRI NAVEEN CHANDRA
against the order of the ld. CIT(E), New Delhi dated 11.03.2025.
None appeared for and on behalf of the assessee. So we heard the ld. DR and perused the relevant material on record.
3. We find from the record that the assessee has filed an application stating that the ld. CIT(A) has rejected the application for grant of registration u/s 12A(1)(ac)(iii) and 80G of the Income-tax Act, 1961 [the Act, for short] and cancelled the provisional registration. It is the say of the assessee that rejection of application u/s 12A and 80G of the Act was solely on account of non-prosecution of the application.
Per contra, the ld. DR relied upon the orders of the authorities below.
We have heard the ld. DR and have perused the relevant material on record. The reason stated by the assessee in its application is that no notice came to their knowledge and hence non-compliance was beyond their control. We find that the ld. CIT(E) has decided the issue without appreciation of facts. We are of the considered view that the assessee has reasonable cause for not participating before the ld. CIT(E).
In view of the above facts and circumstances and in the interest of justice and fair play, we are of the considered view that the matter be restored back to the file of the ld. CIT(E) to decide the issues afresh after allowing adequate opportunity of being heard to the assessee.
The ld. CIT(E) is directed to decide the issues afresh after affording reasonable and adequate opportunity of being heard to the assessee.
The assessee is also directed to provide necessary information /documents as required by the authorities.
In the result, appeal of assessee in & 1496/DEL/2025 are allowed for statistical purposes.
Order pronounced in open court on 16.05.2025.