S.S. JAIN SABHA (REGD.),NEW DELHI vs. CIT (EXEMPTIONS), NEW DELHI, NEW DELHI

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ITA 1491/DEL/2025Status: HeardITAT Delhi16 May 2025Bench: SHRI MAHAVIR SINGH, VICE PRESIDENT, SHRI NAVEEN CHANDRA (Accountant Member)4 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the learned CIT(E) decided the issue without proper appreciation of the facts. The Tribunal found that the assessee had a reasonable cause for not participating before the CIT(E), as their non-compliance was due to not receiving any notice, which was beyond their control. In the interest of justice and fair play, the Tribunal decided to restore the matter back to the file of the learned CIT(E). The CIT(E) was directed to decide the issues afresh after allowing an adequate opportunity of being heard to the assessee and after the assessee provides the necessary information/documents. The appeals were allowed for statistical purposes.

What were the facts?

The assessee, S.S. Jain Sabha, filed appeals against an order dated 11.03.2025 passed by the learned CIT(E), New Delhi. The appeals pertained to assessment years that were not explicitly stated in the judgment. The assessee's application for grant of registration under Section 12A(1)(ac)(iii) and 80G of the Income-tax Act, 1961, was rejected, and its provisional registration was cancelled. The assessee contended that this rejection was solely due to non-prosecution, which occurred because no notice came to their knowledge, making the non-compliance beyond their control. The Department's representative relied on the orders of the authorities below. The Tribunal noted that none appeared for the assessee during the hearing.

What were the issues?

1. Whether the rejection of the assessee's application for registration under Section 12A(1)(ac)(iii) and 80G of the Income-tax Act, 1961, and the cancellation of its provisional registration, was justified, considering the assessee's claim of non-receipt of notice and reasonable cause for non-compliance. Assessee's Contention: The rejection was solely due to non-prosecution, which was beyond their control as they did not receive any notice. Therefore, there was a reasonable cause for their non-participation. Revenue's Contention: The learned DR relied upon the orders of the authorities below, implying agreement with the CIT(E)'s decision.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘F’ BENCH,

Before: SHRI MAHAVIR SINGH, & SHRI NAVEEN CHANDRA

For Respondent: Shri Manish Gupta, Sr. DR

Heard together (2 matters)

ITA No. 1491/DEL/2025
ITA No. 1496/DEL/2025

Read from the judgment's own cause title. This page is filed under one of them.

against the order of the ld. CIT(E), New Delhi dated 11.03.2025.

2.

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.

3.

Per contra, the ld. DR relied upon the orders of the authorities below.

4.

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).

5.

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.

6.

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.

7.

In the result, appeal of assessee in & 1496/DEL/2025 are allowed for statistical purposes.

Order pronounced in open court on 16.05.2025.

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