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Facts
The assessee filed an application for registration under Section 12A of the Income Tax Act, 1961, in Form 10AB. The CIT(E) rejected the application due to non-compliance with notices and failure to provide required documents, also cancelling the provisional registration. The appeal was filed with a delay.
Held
The Tribunal condoned the delay in filing the appeal. It held that in the interest of justice, the assessee should be granted one more opportunity to represent its case before the CIT(E) for de novo adjudication.
Key Issues
Whether the CIT(E) erred in rejecting the 12A application without providing sufficient opportunity, and whether the delay in filing the appeal should be condoned.
Sections Cited
12A, 12AB
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYASHRI SANDEEP SINGH KARHAIL
Date of Hearing – 23/04/2025 Date of Order - 24/04/2025
O R D E R PER SANDEEP SINGH KARHAIL, J.M.
The assessee has filed the present appeal challenging the impugned order dated 20.11.2024, passed by the learned Commissioner of Income Tax (Exemptions) –Pune, [“learned CIT(E)”], rejecting the application filed by the assessee in Form 10AB for seeking registration under section 12A of the Income Tax Act, 1961, (“the Act”).
The present appeal is delayed by 31 days. Along with the appeal, the assessee has filed an application seeking condonation of delay, which is duly supported by an affidavit of the Trustee of the assessee-trust.
Having considered the submission made in the affidavit, we are of the considered view that there was a sufficient cause, which prevented the assessee from filing the present appeal within the prescribed limit period. Accordingly, we condone the delay in filing the appeal by the assessee and proceed to decide the same on merits.
In this appeal, the assessee has raised the following grounds: - “
1. Based on the facts and circumstances of the case, and in accordance with the law, the Learned CIT (Exemptions), Pune erred in not granting sufficient opportunity to the appellant, to resolve the discrepancies, thereby violating the principles of natural justice.
2. Based on the facts and circumstances of the case, and in accordance with the law, the Learned CIT (Exemptions), Pune had not provided sufficient time to submit the documents as stated in Final SCN issued on 08/11/2024 with compliance date 15/11/2024 (only 6 days) thereby deprived the trust to comply the same.
3. Based on the facts and circumstances of the case, and in accordance with the law, the Learned CIT (Exemptions), Pune failed to consider the documents submitted in response to the Notice Dt 04/10/2024, which prove the trust's charitable activities, and rejected the 12A application on the technicality of not submitting all the details/documents asked for.”
During the hearing, the learned Authorised Representative (“learned AR”) submitted that due to some miscommunication between the assessee- trust and its counsel, the requisite details as sought by the learned CIT(E) could not be furnished. The learned AR submitted that given another opportunity, the assessee will furnish all the documents as sought before the learned CIT(E).
From the perusal of the impugned order, we find that the assessee filed an application in Form 10AB under section 12A(1)(ac)(iii) of the Act for seeking registration under section 12A of the Act. In order to verify the genuineness of the activities of the assessee and compliance with the requirements of any other law for the time being in force by the assessee, the learned CIT(E) issued notice on 08.08.2024, seeking details as mentioned from pages 3-7 of the impugned order. We find that the assessee was asked to submit the requisite details by 23.08.2024. However, the assessee did not respond to the said notice. Thereafter, the learned CIT(E) issued notices on 04.10.2024 and 08.11.2024. However, these notices were also not responded to by the assessee. Accordingly, vide impugned order dated 20.11.2024, the learned CIT(E) rejected the application filed by the assessee and the provisional registration granted on 24.06.2022 under section 12AB r.w. section 12A(1)(ac)(vi) of the Act was also cancelled.
Having considered the submissions and perused the material available on record. We are of the considered view that in the interest of justice, the assessee be hereby granted one more opportunity to represent its case before the learned CIT(E). Accordingly, we deem it appropriate to restore the application filed by the assessee in Form 10AB for seeking registration under section 12A of the Act to the file of the learned CIT(E) for de novo adjudication as per law after providing the reasonable and adequate opportunity of hearing to the assessee. The assessee is also directed to furnish all the information as may be sought by the learned CIT(E) without any default. With the above directions, the impugned order is set aside, and the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/04/2025