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Facts
The assessee's application for registration under Section 12AB of the Income-tax Act, 1961 was rejected by the CIT(E) for non-furnishing of required documents/information after a show cause notice was issued. The assessee contended that it was not provided with a proper opportunity to present its case.
Held
The Tribunal found that the assessee was not afforded sufficient opportunity to furnish the required details. Therefore, the Tribunal set aside the order of the CIT(E) and restored the matter back for fresh adjudication with a reasonable opportunity to the assessee.
Key Issues
Whether the assessee was provided with a reasonable opportunity of being heard before rejection of its application for registration under Section 12AB of the Income-tax Act, 1961?
Sections Cited
12AB, 12A(1)(ac)(vi)(B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee arises out of the orders of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 24.06.2025 in rejecting application for registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”).
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When this appeal was taken up for hearing, none appeared on behalf of the assessee and accordingly, the hearing was proceeded with the able assistance of Ld. Departmental Representative (DR), Mr. Bipin C.N, CIT.
The Ld. CIT(E) has rejected the application filed by the assessee in Form 10AB u/s. 12A(1)(ac)(vi)(B) of the Act on 18.12.2024, seeking registration u/s. 12AB of the Act for the reason that the Ld. CIT(E)
1. called for information vide show cause notice dated 10.05.2025, but the assessee had not provided any evidence or clarification sought.
The Ld. CIT(E) therefore, rejected the application for registration u/s. 12AB of the Act.
The assessee, in the statement of facts, has submitted that the show cause was issued on 10.05.2025, fixing date of compliance on 16.05.2025, and that the Ld. CIT(E) has rejected the application solely on the ground that certain documents had not furnished. The assessee, therefore contended in the grounds of appeal that proper opportunity was not provided, and therefore prayed that one more opportunity may be provided before Ld CIT(E) to substantiate its case.
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On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
We have gone through the order of the Ld. CIT(E). The Ld.
CIT(E) has issued a show cause notice on 10.05.2015 fixing compliance date on 16.05.2015. As the assessed did not comply with the show cause notice, the Ld. CIT(E) had rejected the application in the absence of certain documents/information required under Rule 17A of the Income Tax Rules, 1972. In our considered view, the assessee was not afforded sufficient opportunity to furnish the requisite details. In the interest of justice, we are of the opinion that one more opportunity ought to be given to the assessee to present its case. Accordingly, we set aside the impugned order and restore the matter back to the file of the Ld. CIT(E) for fresh adjudication of the application, after providing the assessee a reasonable opportunity of being heard. The assessee is also directed to comply with all notices issued by the Ld. CIT(E) and furnish all relevant documents/information for its 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 only.
Order pronounced on 14th day of November, 2025 at Chennai.