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Facts
The assessee, Feed National Foundation, filed an online application for registration under Section 12AB of the Income Tax Act, 1961, in Form 10AB. The Commissioner of Income Tax (Exemption) rejected the application due to non-compliance with notices, despite the assessee claiming to have submitted the required documents.
Held
The Tribunal, considering the principles of natural justice, held that the assessee should be given another opportunity to present its case. The impugned order was set aside, and the matter was remitted back to the CIT(E) for fresh adjudication.
Key Issues
Whether the CIT(E) correctly rejected the registration application without considering the assessee's submissions and if principles of natural justice warrant a second opportunity for adjudication.
Sections Cited
12AB, 80G(5)
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2024-25 arises out of the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 23.12.2024 in rejecting the application for registration filed in Form 10AB seeking registration u/s. 12AB of the Income Tax Act, 1961 (hereinafter “the Act”).
The assessee is a Trust and filed online application on 04.06.2024 in Form-10AB under sub-clause(iii) of first proviso to Section 80G(5) of the Act. The Ld. CIT(E) has rejected the application for the reason that the assessee had failed to comply with the notices issued in spite of reasonable opportunities afforded.
The Ld. Authorized Representative (A.R) of the assessee has submitted that the assessee has uploaded the statement on 13.12.2024, in response to notice on 13.12.2024 though the due date was 17.12.2024, but the Hon’ble CIT(E) has not considered the same and held that the assessee has failed to comply with the notices.
Hence, he prayed that one more opportunity may be granted in the interests of justice to substantiate its claim.
On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
We have heard the rival submissions, and perused the materials available on record. On perusal of the order of Ld. CIT(E), it is evident that the application in Form 10AB was rejected on the ground of non- compliance of the notices issued. The Ld. A.R has argued that the Ld. CIT(E) has rejected the application without considering the submission made within the stipulated date and therefore, requested that the case may be remitted back to the Ld. CIT(E) for fresh adjudication.
Considering the principles of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to present its case before the Ld. CIT(E). Accordingly, we set aside the impugned order and remit the matter back to the file of the Ld. CIT(E) for fresh adjudication in accordance with law. We also direct the assessee to appear before the Ld. CIT(E) on the date of hearing without fail and furnish all relevant documents and information for 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.
Order pronounced on 17th April, 2025.