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Facts
The assessee filed an appeal against the order of the Ld. CIT(E) rejecting their application for registration under Section 12AB. The rejection was based on the non-submission of a provisional registration certificate (Form 10AC). The assessee explained that the delay was due to a staff member's resignation and the subsequent non-receipt of notices.
Held
The Tribunal condoned the delay in filing the appeal. Upon considering the submissions, the Tribunal found that the matter warranted reconsideration and decided to remit the case back to the Ld. CIT(E) for fresh adjudication.
Key Issues
Whether the Ld. CIT(E) was justified in rejecting the application for registration without providing adequate opportunity, and if the delay in submission of documents can be condoned.
Sections Cited
12A, 12AB, 80G(5), 12A(1)(ac)(iv), 12A(1)(ac)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA & SHRI ANIKESH BANERJEE
The instant appeal of the assessee is filed against the order of the Learned Commissioner of Income-tax (Exemption), Mumbai *in short, ‘Ld.CIT(E)+passed under section 12A of the Income-tax Act, 1961 (in short, ‘the Act’), date of order 02/09/2023.
2 ITA 1206/Mum/2024 Sajjan Jain Support Trust 2. The assessee has taken the following grounds:- “
1. The Id. CIT (Exemptions), Mumbai erred in law in rejecting application for permanent registration u/s. 12AB of the Act in Form 10AB on the ground of not providing Form No. 10AC issued by CPC, Bengaluru approving the provisional registration of the appellant trust without providing the appellant an adequate opportunity of being heard.
2. Your appellant craves leave to add, amend, alter or drop all or any of the above grounds of appeal.”
The registry has informed that the assessee filed the appeal with a delay of 478 days. To explain the delay, the assessee submitted an affidavit stating that the notice was served via the email account of an employee who had resigned on 30/07/2022, without informing the assessee about the receipt of the notice. Subsequently, the email address was updated, and the official email was registered on the online portal. The Ld.DR raised an objection to the condonation of delay. However, we find no merit in the DR’s argument. Considering the facts of the case, we accept the affidavit submitted by the assessee and condone the delay of 478 days. Accordingly, the appeal is admitted for adjudication.
The Ld.AR placed that the assessee was granted provisional registration in Form 10AC under section 12A(1)(ac)(iv) and under section 80G(5) of the Act on 24/05/2022 and 22/06/2022. Subsequently, the assessee had filed Form 10AB seeking registration under section 12A(1)(ac)(ii) of the Act. However, the said application for registration under section 12AB following n Form 10AB was rejected on the ground that the assessee had not submitted the provisional registration certificate in Form 10AC issued by the CPC, Bengaluru, before the Ld.
3 ITA 1206/Mum/2024 Sajjan Jain Support Trust CIT(E). The Ld.CIT(e) rejected the application of the assessee with the following observations:_ “5. No compliance has been made to the reminder also. In view of the same, I am constrained to reject the application in Form 10AB filed by the assessee for want of compliance. The applicant is at liberty to refile Form 10AB on the portal seeking registration / approval alongwith required enclosures including Form 10AC.”
The Ld.DR argued and relied on the order of the revenue authorities.
We heard the rival submission and examined the documents availablein the record.The assessee, through an affidavit, explained that the email address used for communication was that of a staff member who had resigned on 30/07/2022. Since the email account was no longer being accessed by anyone, the notice went unnoticed, resulting in non-compliance and no corrective measures could be taken within the prescribed time. Consequently, all notices remained unaddressed before the Ld.CIT(E). The Ld.CIT(E), however, rejected the application solely on the ground of non-submission of the provisional registration certificate in Form 10AC. The Ld.AR contended that the said certificate was, in fact, available on the Income Tax portal. Moreover, the Ld.CIT(E) opined that while the application was rejected, the assesse retained the liberty to reapply for final approval of registration. In our considered view, the matter warrants reconsideration. Accordingly, we remit the case back to the file of the Ld.CIT(E) for fresh adjudication, after granting the assessee an opportunity to submit the necessary documents. A reasonable opportunity should be provided to the assessee to present its case. On the other hand, the assessee is expected to act diligently and cooperate fully with the Ld.CIT(E) to ensure expeditious disposal of the remanded proceedings.