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Facts
The assessee, a charitable trust, sought registration under Section 12AB of the Income Tax Act. The Commissioner of Income Tax (Exemptions) afforded opportunities for compliance, but the assessee failed to provide complete submissions and documents.
Held
The Tribunal held that the assessee's application was rejected due to non-compliance and statutory limitations. For substantial justice, the case was remanded to the Commissioner for fresh adjudication.
Key Issues
Whether the Commissioner rightly rejected the registration application due to non-compliance, and if the case should be remanded for fresh consideration.
Sections Cited
12AA, 12AB
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Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI OMKARESHWAR CHIDARA
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 29.12.2024, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) u/s 12AA of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2025-26.
In this case, the Assessee had sought for registration u/s 12AB of the Act by filing an application in Form 10AB. Though the Ld. Commissioner afforded various opportunities to the Assessee by issuing notices however the Assessee except seeking adjournments and filling incomplete submissions, eventually made no effective compliance and therefore the Ld. Commissioner having left with no option and considering the statutory limitation to decide the application filed by the Assessee on or before 31.12.2024, was constrained to reject the application filed by the Assessee, vide impugned order dated 29.12.2024.
Admittedly, in the absence of relevant submissions and documents, which the Ld. Commissioner has required, the application filed by the Assessee remained to be adjudicated in its right perspective and proper manner and therefore for just and proper decision of the case and substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee.
We also direct the Assessee to comply with notice(s) to be issued by the Ld. Commissioner and file the relevant submissions and documents as would be essential for proper adjudication of the case. We clarify that in the case of subsequent default, the Assessee shall not be entitled for any leniency.
In the result, the Assessee’s appeal is allowed for statistical purposes.
Order pronounced in the open court on 30.07.2025.