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Facts
The assessee filed an application for registration under Section 12AB of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption) rejected the application due to non-compliance with notices and failure to provide required documents.
Held
The Tribunal condoned the delay in filing the appeal and, considering that the assessee was ready to submit the required information, set aside the CIT(E)'s order.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration solely on the grounds of non-compliance without affording adequate opportunity to the assessee.
Sections Cited
12AB, 12(1)(ac)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee arises out of the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 10.12.2024 in rejecting application for registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”).
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There is a delay of 186 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The only ground of appeal in this appeal of the assessee is against the rejection of application filed in Form 10AB u/s. 12(1)(ac)(ii)
1. of the Act, seeking registration u/s. 12AB of the Act. The assessee has filed online application on 14.06.2024 seeking registration u/s. 12AB of the Act. The Ld. CIT(E) issued a notice calling for relevant documents and clarifications regarding objects of the trust. However, the assessee failed to comply with the notice/s, inspite of reasonable opportunity afforded. Consequently, the Ld. CIT(E) rejected the application as not maintainable for non-submission of the required information.
The Ld. Authorized Representative (A.R.) for the assessee that the Ld. CIT(E) has rejected the application solely on the ground that certain documents had not furnished. The Ld. AR, therefore contended that the assessee was not afforded adequate opportunity to comply Crescent Star Trust :- 3 -: with the requirements, and therefore prayed that one more opportunity may be provided to substantiate its case before Ld CIT(E) .
On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
We have heard both the parties and gone through the order of the Ld. CIT(E). It is evident that the application filed by the assessee was rejected by the Ld. CIT(E) due to non-compliance with the notices issued. However, the Ld. AR has now explained the reasons for such non-compliance and has assured that the assessee is ready to submit all the required information. Considering the submissions and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case. Accordingly, we set aside the impugned order and remit the matter back to the file of the Ld. CIT(E) for fresh consideration of the application, after affording the assessee a reasonable opportunity of being heard. The assessee is also directed to comply with the notices issued by the Ld. CIT(E) and furnish all relevant details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
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In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 25th day of November, 2025 at Chennai.