Loading judgment…
Facts
The assessee applied for registration under Section 12AB and approval under Section 80G of the Income Tax Act, which were cancelled/rejected by the CIT(E) citing non-responsiveness. The assessee contended that it had submitted the required documents on December 3, 2024, the same day the rejection order was passed, and was denied a proper opportunity to be heard.
Held
The Tribunal observed that the CIT(E) passed the cancellation order without considering the assessee's submissions made on the same date. Consequently, the Tribunal remitted both matters back to the CIT(E) for fresh consideration, directing that the assessee be granted a reasonable opportunity of being heard and asked to provide all necessary details.
Key Issues
Whether the CIT(E) erred in cancelling the assessee's registration/approval without considering the submitted documents and denying a fair opportunity of hearing.
Sections Cited
12AB, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A’’BENCH: BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI KESHAV DUBEY
PER KESHAV DUBEY, JUDICIAL MEMBER:
These appeals at the instance of the assessee are directed against the order of the ld. CIT(Exemptions) Bangalore both dated 3.12.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1070851625(1) cancelling the registration u/s 12AB of the Income Tax Act, 1961 (in short “The Act”) and vide DIN & Notice No. ITBA/EXM/F/F/EXM45/2024-25/1070851784(1) cancelling the approval u/s 80G of the Act. Since the issue in both these appeals of the same assessee trust is common in nature, these are clubbed together, heard together and disposed of by this common order for the sake of convenience. for adjudication. In this appeal, the assessee has raised the following grounds of appeal:-
Brief facts of the case are that on receipt of application in form 10AB dated 29.6.2024 for the registration u/s 12AB of the Act, the ld. CIT(E) assigned the case to the JAO for verification. The JAO issued several letters/notices through official mail/post calling for the details/documents. However, the assessee was non- responsive. The ld. CIT(E) also observed that the assessee has not responded even before her till the date of passing of the order. Further the ld. CIT(E) observed that the assessee trust is required to submit the necessary documents to prove the genuineness of the activity of the trust and also the compliance of such requirement of any other law as are material for the purpose of achieving its object. The ld. CIT(E) is of the opinion that as the assessee has not responded to any of the notices issued and failed to appear and submit all the necessary documents/details as required for registration u/s 12AB of the Act and accordingly application in form & 191/Bang/2025 Kodavaame, Bangalore Page 3 of 5 no.10AB dated 29.6.2024 filed for registration u/s 12AB of the Act was rejected and registration was cancelled.
Aggrieved by the order of ld. CIT(E) the assessee filed the present appeal before this Tribunal.
Before us, the ld. A.R. of the assessee submitted that the allegation as made by the ld. CIT(E) that the assessee had not responded at all is not true. The AR of the assessee further vehemently submitted that in fact the auditor of the assessee visited the office of the ld. CIT(E) and sought time till 3rd of December, 2024 to submit the required documents. It is also submitted that the assessee had in fact furnished/uploaded the required documents in parts thrice by way of partial response on 3rd of December, 2024 but surprisingly on the very same day the ld. CIT(E) passed the order cancelling the registration without considering the documents/details submitted by the assessee and accordingly prayed to grant one more opportunity before the ld. CIT(E).
Ld. D.R. on the other hand relied on the order of ld. CIT(E) but could not controvert the fact that the assessee had filed the response on 03/12/2024 before the ld. CIT(E).
We have heard the rival submissions and perused the materials available on record. Before us, the ld. A.R. of the assessee submitted that the assessee had furnished the required documents on 3rd of December, 2024, however, the ld. CIT(E) passed the order cancelling the registration without considering the documents/details submitted by the assessee trust. Further, before us, the ld. A.R. of the assessee submitted that one more opportunity may be granted to the assessee trust to represent its & 191/Bang/2025 Kodavaame, Bangalore Page 4 of 5 case and remand the both the matters back to the file of the ld. CIT(E) for fresh consideration. This being so, in the interest of justice and fair play and as requested by the ld. A.R. of the assessee, we deem it fit and proper to remit the entire issue in dispute to the file of ld. CIT(E) to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. We also direct the assessee to produce/submit all the necessary details/documents/record/ financials/reports in support of its claim and should not take unnecessary adjournments. It is ordered accordingly.
In the result, appeal of the assessee is partly allowed for statistical purposes.
Now we take up , wherein the assessee has raised following grounds of appeal:
Since we have remitted the entire issue of registration u/s 12AB of the Act to the file of ld. CIT(E), we deem it fit and proper to & 191/Bang/2025 Kodavaame, Bangalore Page 5 of 5 remit this issue of approval u/s 80G of the Act to the file of ld. CIT(E) to decide afresh in accordance with law as the the ld. CIT(E) had passed the order without considering the submissions made by the assessee. It is ordered accordingly.
In the combined result, both the appeals filed by the assessee are partly allowed for statistical purposes.