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Facts
The assessee filed applications for registration under section 12AB and approval under section 80G of the Income Tax Act. The CIT(E) rejected the applications due to non-furnishing of required details. The appeals were filed with a significant delay, which was condoned by the Tribunal.
Held
The Tribunal condoned the delay in filing the appeals. While acknowledging the rejection by the CIT(E) for non-compliance, the Tribunal decided to remand the matter back to the CIT(E) to provide one more opportunity to the assessee to furnish the required details, subject to payment of costs.
Key Issues
Whether to provide another opportunity for furnishing details for registration u/s 12AB and approval u/s 80G after rejection by CIT(E) and condoning the delay in filing appeals.
Sections Cited
12A(1)(ac)(iii), 12AB, 80G, 80G(5)
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Before: Shri M. Balaganesh & Shri S.S. Viswanethra Ravi
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
Both the appeals filed by the assessee are directed against different orders dated 06.03.2024 passed by the ld. Commissioner of Income Tax (Exemption), Chennai rejecting the applications dated 28.09.2023 in Form No. 10AB under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 [“Act” in short] seeking registration under section 12AB of the Act as well as seeking approval under section 80G of the Act.
Since issues raised in both the appeals are similar based on the same identical facts, with the consent of both the parties, we proceed to 2 & 2269/Chny/25 hear the appeals together and pass consolidated order for the sake of convenience.
We find both the appeals are filed with a delay of 440 days. The assessee filed affidavits for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeals for adjudication.
We note that the assessee filed online application on 28.09.2023 in Form No. 10AB under section 12A(1)(ac)(iii) of the Act seeking registration under section 12AB of the Act. The assessee also filed online application on 28.09.2023 in Form No. 10AB under clause (iii) of first proviso to section 80G(5) of the Act seeking approval under section 80G of the Act. The ld. CIT(E), while processing the application, asked the assessee to furnish certain documents including Note on activities and annual accounts/financial statements of the Institution, certified copies of certain important documents, etc. mandatorily required for verification. Since the assessee could not furnish the details, the ld. CIT(E) rejected the application filed in Form 10AB seeking registration under section 12AB of the Act as well as seeking approval under section 80G of the Act.
The ld. AR Shri R. Vijayaragahavan, Advocate submits that the assessee did not receive any communication from the Department regarding the processing of the Applications and the status in the IT portal under the e-filed forms tab for Form 10AB showed no change in the application status, even as on date, there is no update regarding the rejection of the application. He further submits that notices by e-mail were issued to an incorrect email id siva.manilth@gmail.com as against the ID mentioned in the MCA website siva.malind@gmail.com. He further submits though the Application Form 10AB carried the e-mail id pharmzealcharitablefoundation@gmail.com, no communication was received by the assessee and moreover, no communication was sent to the registered email id that was appearing in the IT portal. Thus, the ld. AR prayed for affording one more opportunity for filing the details as called for.
The ld. DR Shri C.N. Bipin, CIT drew our attention to para 2.2, 3.1 & 3.2 of the impugned order and submits that the ld. CIT(E) afforded various opportunities to the assessee for furnishing the details, but, it was not availed. He vehemently argued that costs may be imposed, in case this Tribunal affords an opportunity by remanding the matter to the file of the ld. CIT(E) for fresh consideration.
Taking into consideration of the submissions of the ld. AR and the ld. DR, in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(E) to afford one more opportunity to the assessee for furnishing the details for verification for grant of registration under section 12AB of the Act as well as approval under section 80G of the Act subject to the condition of payments of ₹.25,000/- each in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the ld. CIT(E) shall satisfy the payment of cost and decide the issue afresh after considering the details for processing the applications as may be filed by the assessee. Thus, the grounds raised by the assessee in both the appeals are allowed for statistical purposes.