Loading judgment…
Facts
The Assessee sought registration under Section 12AB by filing Form 10AB. Despite opportunities and notices, the Assessee failed to provide complete submissions and complied ineffectively.
Held
The Tribunal held that the Assessee's application could not be adjudicated properly due to lack of submissions and documents. Therefore, the case is remanded to the Commissioner for fresh decision after affording a reasonable opportunity of being heard.
Key Issues
Whether the Commissioner erred in rejecting the application for registration under Section 12AB due to non-compliance by the Assessee?
Sections Cited
12AB, 10AB
AI-generated summary — verify with the full judgment below
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 26.12.2024, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) u/s 12AB of the Income Tax Act, 1961 (in short ‘the Act’).
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 26.12.2024.
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.