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Facts
The assessee, Shri Shyam Dharmarth Trust, applied for registration under section 12A(1)(ac)(iii). The CIT(E) rejected the application ex-parte, alleging non-compliance with notices. The assessee contended that notices were sent to an incorrect email ID of a former accountant, rendering them unaware of the proceedings.
Held
The Tribunal noted that the notices were allegedly not effectively served on the assessee due to an incorrect email ID. In the interest of justice, the Tribunal decided to restore the matter to the CIT(E) for fresh adjudication, provided the assessee complies with all statutory notices.
Key Issues
Whether the rejection of registration application by CIT(E) was valid when notices were not effectively served due to technical/procedural lapse, violating principles of natural justice?
Sections Cited
12A(1)(ac)(iii), 282, 12A, 12AB
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Income Tax Appellate Tribunal, DELHI BENCH, ‘G’: NEW DELHI
Before: SHRI ANUBHAV SHARMA&
ORDER PER AMITABH SHUKLA, AM,
The captioned appeal has been preferred by the assessee against order dated 08.11.2024 of the Ld. Commissioner of Income Tax (Exemption), Chandigarh, [hereinafter referred to as ‘ld. CIT(E)’] passed u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 pertaining to Assessment Year 2024-25. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
The assessee has raised following grounds of appeal:-
1) That the Ld. CIT(E) erred in law by holding that sufficient opportunities were provided merely because 282 read with Rule 127, thereby rendering the order void 2) That the Ld. CIT(E) erred in rejecting the application solely for alleged non compliance, without examining OR adjudicating the genuineness of activities, nature of objects, OR supporting documents, which is contrary to statutory mandate under section 12A/12AB and settled judicial principles requiring adjudication on merits. 3) That the order suffers from violation of the principles of natural justice (audi alteram partem) and is liable to be quashed as appellant was never afforded proper service of notice and did not have any knowledge of the proceedings 4) That the order, being ex-parte and mechanical, deserves to be set aside and matter restored to the file of the Ld. CIT(E) for de novo consideration 5) That in view of above, the impugned order is illegal, arbitrary and unsustainable, and deserves to be quashed with directions for fresh adjudication. 6) The appellant craves leave to add, amend, modify OR withdraw any ground at the time of hearing. 7) That the Ld. CIT (Exemptions), Chandigarh has erred in law and on facts in passing the ex parte order dated 08.11.2024 in Form No. 10AD, rejecting the appellant's application for registration under section 12A(1)(ac)(iii), without granting a fair, meaningful, OR effective opportunity of hearing, thereby violating the principles of natural justice. 8) That the Ld. CIT(E) has failed to appreciate that the statutory notices dated 23.09.2024, 18.10.2024 and 29.10.2024 were never effectively served upon the appellant, as all communications were delivered only to an incorrect e mail ID inadvertently entered of the accountant in the profile, and the appellant had no knowledge that any proceedings were pending.
The Ld. DR relying upon the order of the lower authorities took us through the factual matrix of the case. It was submitted that due opportunities have been given to the appellant before dismissing its Page 2 of 5
We have heard rival submissions in the light of material available on records. We have noted from the impugned orders of Ld. CIT(E) that the appellant was required to file documents in support of its claims which were not provided. We have noted that the ld. CIT(E) had issued notices dated 23.09.2024, 18.10.2024 and 29.10.2024, which were not admittedly complied by the assessee. The Ld. CIT(E) proceeded to draw adverse conclusions and rejected the applications.
Brief facts of the case are that the appellant assessee is a trust engaged in charitable activities with the objective of running a Dharamshala for devotees of Shri Khatu Shyam Ji, Rajasthan and providing shelter and food for devotees and pilgrims coming to temple. The appellant is a charitable trust created since 2022 for religious/charitable purposes and applied for registration under section 12A(1)(ac)(ii) by filing Form 10AB on 10.05.2024. That the trustees are involved in the charitable activities through trust since long and is unaware of the procedural knowledge of Income Tax Portal. That also knowledge of computer is also very limited. The Ld. CIT(E) issued notices dated 23.09.2024, 18.10.2024 and 29.10.2024, calling for information. The trust could not respond because all e-mails from the e-filing system were sent to an e-mail ID which was of Accountant who left the job. The accountant never informed the Trust that Page 3 of 5 notices had been issued. Therefore, the Trust had no knowledge that any notices were issued. Hence, the ld. CIT(E) rejected the registration and passed the order ex-parte and dismissed the appeal of the assessee. Be that as it may be, in the interest of justice, we deem it appropriate to remit the issues back to the Ld. CIT(E) for re-adjudication of the matter after providing due opportunity of being heard to the assessee. It shall be bounden upon the assessee to comply with all the statutory notices issued by the Ld. CIT(E ) and any non-compliance shall be viewed adversely. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.
In the result, the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 01stApril, 2026.