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Facts
The assessee trust filed two appeals against the orders of the CIT(E) rejecting their applications for registration under section 12AB and approval under section 80G. The orders were passed ex-parte due to the assessee's failure to respond to notices.
Held
The Tribunal condoned the 72-day delay in filing the appeals. While deprecating the assessee's non-response, the Tribunal granted one more opportunity in the interest of justice and equity, restoring the issues to the CIT(E).
Key Issues
Whether the assessee should be given another opportunity to represent their case after failing to respond to notices, leading to ex-parte orders from the CIT(E)?
Sections Cited
12AB, 80G
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & SHRI HON’BLE S.R. RAGHUNATHA
आदेश / O R D E R
PER MANU KUMAR GIRI (Judicial Member): These two appeals at the instance of the assessee are directed against two separate orders of CIT(E) both dated 18.10.2024, rejecting Form No.10AB filed for seeking registration u/s.12AB and approval u/s.80G of the Income Tax Act, 1961 (hereinafter the ‘Act’).
& 753/Chny/2025 Aruvi Educational and Charitable Trust :- 2 -: 2. There is a delay of 72 days in filing these appeals. The assessee has filed petition along with affidavit for condonation of delay stating therein the reasons for belated filing of these appeals. On perusal of the aforesaid reasons in the condonation application, we are of the view that there is sufficient cause for belated filing of these appeals and no latches as such can be attributed to the assessee. Hence, we condone the delay in filing these appeals and proceed to dispose of the appeals on merits.
At the very outset, we notice that the Ld. CIT(E) has passed ex- parte orders. The reason for deciding the appeals ex-parte was that the assessee did not reply to the notices / show cause notices issued from the office of the CIT(E). The Ld. AR submitted that in the interest of justice and equity, one more opportunity may be provided to assessee trust to represent its cases before the Ld. CIT(E).
The Ld. DR supported the orders of Ld. CIT(E).
We have heard rival submissions and perused the material on record. The Office of the CIT(E) had issued notices / show cause notices by e-mail directing the assessee to file certain details / documents. Since there was no response by the assessee to the & 753/Chny/2025 Aruvi Educational and Charitable Trust :- 3 -: notices issued, the Ld. CIT(E) passed ex-parte orders. It is the claim of the assessee that the notices issued through e-mail have been not seen by the assessee as the assessee is not well versed with computer and depended upon the auditor. We strongly deprecate the nonchalant attitude of the assessee in not responding to various notices issued from the Office of the Ld. CIT(E). However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its cases and accordingly, the issues are restored to the files of the Ld. CIT(E). The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.
In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 10th day of June, 2025 at Chennai.