UNICO CHARITABLE TRUST,CHENNAI vs. CIT, EXEMPTIONS,, CHENNAI

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) 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.

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.

In the result, the appeal filed by the assessee is allowed for statistical purposes only.