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Facts
The assessee trust filed an application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) rejected the application, citing non-compliance with notices and failure to furnish complete details, and also cancelled the provisional registration.
Held
The Tribunal found that the assessee had obtained provisional registration and filed an application for regularization, which was contended to be time-barred by the CIT(E). The Tribunal decided to grant the assessee one more opportunity to furnish necessary documents.
Key Issues
Whether the CIT(E) erred in rejecting the application for registration under Section 12A/12AB without providing adequate opportunity, and if the matter should be remanded for fresh consideration.
Sections Cited
12AB, 80G, 12A, 12A(1)(ac)(iii), 12A(1)(ac)(vi), 12AB(1)(b)(i), 17A(2)
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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
Before: AND SMT. RENU JAUHRI, AM
O R D E R Per Bench: These are captioned appeal filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Exemption) Pune (‘ld. CIT(E)’ for short), passed u/s. 12AB and u/s. 80G of the Income Tax Act, 1961 (‘the Act').
As the facts are identical in both these appeals, we hereby pass a consolidated order by taking as a lead case.
The assessee has raised the following grounds of appeal:
1. & 1614/Mum/2025 (A.Y. N.A.) Lakshyadeep Foundation “1. The learned CIT (Exemption) Pune has erred in rejecting the application of the Appellant Trust for registration u/s 12A, despite the fact that most of the documents which were needed for renewal of 12A were submitted during the course of faceless proceedings before the CIT (Exemption) and the Appellant Trust had sought the adjournment for submitting the further documents but the CIT(Exemption) passed the order even before the time period got expired.
2. The appellant craves leave to add, alter, amend, and modify the aforesaid grounds of appeal
at or any time before the hearing as may be advised from time to time. B RELIEF CLAIMED
1. As the Appellant Trust is in possession of all the relevant documents that are required, the matter may please be remanded back to the office of the CIT (Exemption) for considering it afresh.
2. Any other Relief as may be deemed fit by the authority.”
4. Brief facts of the case are that the assessee trust had filed an application u/s. 12A(i)(ac)(iii) of the Act in form 10AB dated 05.08.2024 before the ld. CIT(E). The ld. CIT(E) vide order dated 27.01.2025, rejected the application filed by the assessee on the ground that the assessee has not duly complied with the notices and has also failed to furnish complete details along with documentary evidences before the ld. CIT(E).
5. Aggrieved by the said order, the assessee is in appeal before us, challenging the order of ld. CIT(E).
6. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee trust has obtained provisional registration u/s. 12AB r.w.s. 12A(1)(ac)(vi) of the Act dated 20.12.2023. The assessee trust had filed an application for regularization u/s. 12AB of the Act, which the ld. CIT(E) contends that has been filed beyond the time limit prescribed u/s. 12A(1)(ac)(iii) of the Act. The assessee was show caused by the ld. CIT(E) as to why the same should not be rejected on the ground that the application was time barred. It is further observed that the assessee has not & 1614/Mum/2025 (A.Y. N.A.) Lakshyadeep Foundation furnished any explanation to the ld. CIT(E) inspite of several adjournments granted to the assessee. The ld. CIT(E) rejected the assessee’s application and cancelled the provisional registration dated 20.12.2023 on the ground that the assessee has not complied with the provisions of Section 12AB(1)(b)(i) of the Act r.w.r. 17A(2) of the Income Tax Rules, 1962 inspite of several opportunities provided to the assessee by the ld. AO. The assessee has contended that majority of the documents required by the ld. CIT(E) was furnished by the assessee and further the ld. CIT(E) passed the impugned order not granting time for the assessee inspite of request for adjournment. The assessee further submitted that it had collated all the required documentary evidences for granting registration u/s. 12AB of the Act and prayed that one more opportunity be given to the assessee to comply with before the ld. CIT(E).
Upon considering the same, we deem it fit to extend the assessee one more opportunity for furnishing all the relevant documentary evidences before the ld. CIT(E) for the purpose of granting registration u/s. 12AB of the Act in accordance with principles of natural justice. The ld. CIT(E) is directed to decide the application proposed to be filed by the assessee, on the merits and in accordance with law. The assessee is strictly directed to comply with the proceeding before the ld. CIT(E) without any undue delay on its side.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
9. The findings recorded in shall apply mutatis mutandis to this appeal also.