Loading judgment…
Facts
The assessee filed an application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(Exemptions) rejected the application due to the assessee's non-participation in proceedings and failure to furnish required documents. The assessee appealed this order.
Held
The Tribunal noted that the CIT(E) provided opportunities for hearing, which the assessee missed. However, to meet the ends of justice, the Tribunal set aside the CIT(E)'s order and remitted the matter back for fresh adjudication.
Key Issues
Whether the CIT(Exemptions) order rejecting the registration application was justified, and if a further opportunity should be granted to the assessee.
Sections Cited
10AB, 12A(1)(ac)(iii), 12AB, 147, 148, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S.R.RAGHUNATHA
आदेश / O R D E R
PER S.R.RAGHUNATHA, AM:
The present appeal is filed by the assessee against the order dated 03.06.2025 passed by the Commissioner of Income Tax(Exemptions)
:-2-: ITA 2366/Chny/2025 (hereinafter referred to as “ld.CIT(E)”), rejecting the registration sought u/s.10AB of the Income Tax Act ,1961 (hereinafter referred to as the “Act”).
The assessee is an institution and filed an application dated 12.11.2024 in Form 10AB u/s.12A(1)(ac)(iii) of the Act, seeking registration u/s.12AB of the Act. The ld.CIT(E) rejected the said application due to non- participation of the assessee in the proceedings and failing to furnish relevant documents/details and its clarification, as the limitation of time for disposal of the application expires by 30.06.2025. Aggrieved by the order passed by the Ld.CIT(E), the assessee is in appeal before us.
At the outset, we observed that ld.CIT(E) has provided two opportunities for the assessee to appear for hearings as detailed in paragraph 3.1 of the ld.CIT(E) order to support the appeal of the assessee.
However, the assessee chose to be silent and did not respond to any of the notices and hence, the ld.CIT(E), Chennai rejected the application as “not maintainable” by passing order dated 03.06.2025.
The Ld.AR for the assessee submitted that the assessee has failed to take note of hearing notices sent through e-mail, resulting in non- participation of assessee during the proceedings. It was prayed in the :-3-: ITA 2366/Chny/2025 interest of justice and equity, the issue may be restored to the files of the ld.CIT(E) as a last opportunity for proper representation of his case.
Per contra, the ld.DR submitted that the ld.CIT(E) provided sufficient opportunity to furnish relevant documents/details and its clarification either by uploading online in the e-filing portal or by post. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(E).
We have heard the rival parties and perused the material available on record and gone through the order of ld.CIT(E). We note that the ld.CIT(E) has passed order by considering the material available on record and the same has been rejected by the ld.CIT(E) due to non-submission of the relevant documents/details and its clarification either by uploading online in the e-filing portal or by post.
Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(E) and remit the matter back to the file to ld.CIT(E) to adjudicate the matter afresh in accordance to law, after providing reasonable opportunity
:-4-: ITA 2366/Chny/2025 to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the court on 20th November, 2025 at Chennai.