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Facts
The assessee's application for registration under Section 12AB of the Income Tax Act was rejected by the CIT(Exemption) for failing to furnish requisite details and appear before the authority. The assessee's representative argued that the Managing Trustee was out of station and requested another opportunity.
Held
The Tribunal restored the appeal to the CIT(E) for reconsideration on merits, directing the CIT(E) to afford a reasonable opportunity of being heard. The assessee was directed to cooperate and not seek unnecessary adjournments.
Key Issues
Whether the CIT was justified in rejecting the application for registration without affording a proper opportunity of hearing to the assessee, despite reasons for non-appearance.
Sections Cited
12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
Set India Foundation, CIT (Exemption), 2/29, Brahmin Street, Vs. Chennai. Osur Village, Vandavasi TK Osur B.O, Osur – 604 405. Tiruvannamalai. PAN: AALTS-5280-R (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Mr. N.Arjun Raj, Advocate ��यथ� क� ओर से/Respondent by : Ms. T.M.Suganthamala, CIT सुनवाई क� तारीख/Date of Hearing : 25.02.2025 घोषणा क� तारीख/Date of Pronouncement : 26.02.2025 आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against order of the CIT(Exemption), Chennai dated 18.10.2024 rejecting application for registration u/s.12AB of the Income Tax Act, 1961 (hereinafter called ‘the Act’).
At the very outset, we notice that CIT(E) has rejected the assessee’s application for registration u/s 12AB of the Act stating that assessee did not file requisite details required to be furnished in pursuance to the hearing notice dated 15.05.2024 and subsequent show cause notice dated 20.06.2024 issued from the Office of the CIT(Exemption). The Ld.AR submitted that Managing Trustee of the assessee trust was out of station and thus, he was unable to appear before the CIT(E) and to furnish necessary details sought for in the show cause notice dated 20.06.2024. Therefore, the Ld. AR pleaded for one more opportunity of hearing, in the interest of justice and equity, before the CIT(E) to represent this appeal by remitting the matter back to the CIT(E) for reconsidering the application u/s.12AB of the Income Tax Act, 1961.
The Ld. DR supported the order of the CIT(E).
We have heard rival submissions and perused material on record. The Office of the CIT(E) vide hearing notice dated 15.05.2024 and show cause notice dated 20.06.2024 had directed the assessee trust to furnish relevant documents / evidences in support of its claim for registration u/s.12AB of the Act. However, the Managing Trust of the assessee trust failed to appear before the CIT(E). Consequently, proceedings before CIT(E) remained ex-parte. Therefore, CIT(E) has rejected the application of the assessee for registration u/s.12AB of the Act vide impugned order dated 18.10.2024. In the interest of justice and equity, we restore this appeal to the files of CIT(E). We direct the CIT(E) to reconsider the application for registration u/s.12AB of the Act, on merits, after affording reasonable opportunity of being heard to the assessee. The assessee trust is directed to co-operate with the Revenue and shall not seek unnecessary adjournment in the matter.
In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 26th February, 2025.