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Facts
The assessee's applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5)(iii) were rejected by the CIT(E) for failure to furnish required documents. The assessee contended that the hearing notices were not effectively served as per Section 282, leading to the non-furnishing of details. The appeals to the Tribunal were filed with a delay of 32 days.
Held
The Tribunal condoned the delay in filing the appeals, accepting the assessee's bona fide reasons. Acknowledging the assessee's argument regarding non-effective service of notice, the Tribunal remanded the matter to the CIT(E) to provide another opportunity to the assessee to furnish the necessary details for verification for fresh consideration of registration and approval.
Key Issues
The key issues were the justification of the CIT(E)'s rejection of applications for registration under Section 12AB and approval under Section 80G due to non-furnishing of documents, and the assessee's claim of non-effective service of hearing notices under Section 282 of the Act.
Sections Cited
12A(1)(ac)(iii), 12AB, 80G(5)(iii), 80G, 282
AI-generated summary — verify with the full judgment below
Before: 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 separate orders both dated 20.01.2025 passed by the ld. Commissioner of Income Tax (Exemptions), Chennai in rejecting Form 10AB in respect of seeking registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 [“Act” in short] as well as seeking approval under section 80G(5)(iii) 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 hear the appeals together and pass consolidated order for the sake of convenience.
We find both the appeals are filed with a delay of 32 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 09.07.2024 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 11.07.2024 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 J. Saravanan, Advocate submits that the hearing notices of the ld. CIT(E) were uploaded on the e-portal of the assessee and there was no effective service of hearing notice as per the provisions of section 282 of the Act. Non furnishing of details is neither wilful nor wanton and prayed for affording one more opportunity for filing the details as called for.
The ld. DR Ms. E. Pavuna Sundari, CIT supported the orders passed by the ld. CIT(E).
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) for fresh consideration by affording one 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 and thereafter pass orders in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 17th July, 2025 at Chennai.