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Facts
The assessee, Rakesh Law Foundation, applied for registration under Section 12AB of the Income Tax Act, 1961, by filing Form 10AB under Section 12(1)(ac)(iii). The Ld. Commissioner of Income Tax (Exemption) rejected this application due to the assessee's alleged non-compliance in furnishing details in response to a show-cause notice. The assessee contended that no notice was served on its registered email ID.
Held
The Tribunal acknowledged the assessee's claim of non-receipt of the show-cause notice, concluding that the assessee was not afforded a proper opportunity of being heard. Therefore, the Tribunal deemed it appropriate to remand the matter back to the file of the Ld. CIT(E) for fresh consideration after providing due opportunity to the assessee.
Key Issues
Whether the Ld. CIT(E) was justified in rejecting the application for registration under Section 12AB without ensuring proper service of a show-cause notice and granting an adequate opportunity of hearing to the assessee.
Sections Cited
12(1)(ac)(iii), 12AB
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:
This appeal filed by the assessee is directed against the order dated 15.06.2023 passed by the ld. Commissioner of Income Tax (Exemption), Chennai in rejecting the application filed in Form 10AB under section 12(1)(ac)(iii) seeking registration under section 12AB of the Income Tax Act, 1961 [“Act” in short].
We find that this appeal is filed with a delay of 446 days. The assessee filed an affidavit 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 appeal for adjudication.
The assessee raised 3 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(E) is justified in rejecting the application filed in Form 10AB under section 12(1)(ac)(iii) seeking registration under section 12AB of the Act.
We note that the assessee filed online application on 21.12.2022 in Form No. 10AB under section 12(1)(ac)(iii) seeking registration under section 12AB of the. The ld. CIT(E), while processing the application, asked the assessee to show-cause as to why its application should not be rejected on account of reasons mentioned in para 2 & 3 of the impugned order. For having no such details, the ld. CIT(E) rejected the application of the assessee.
The ld. AR Shri B. Ramakrishnan, F.C.A. submits that no notice was served on the registered email ID ‘dsdinesh2619@gmail.com’ and thus, non-attendance of the hearings on the part of the assessee was not wilful and was caused by factors beyond its control. He further submits that the assessee is ready to file all relevant details in response to the show-cause notice issued by the ld. CIT(E) and prayed that one more opportunity may be afforded to the assessee to pursue its case before the ld. CIT(E).
The ld. DR Shri R. Clement Ramesh Kumar, CIT opposed the same.
On perusal of para 3 and 4 of the impugned order, we note that the ld. CIT(E) proceeded to reject the application Form No. 10AB under section 12(1)(ac)(iii) seeking registration under section 12AB of the Act for non-compliance of furnishing details in response to the show-cause notice, thereby, clearly establishes that the assessee has no opportunity before the ld. CIT(E). The contention of the ld. AR is that no notice of hearing was served on the assessee on the registered email ID dsdinesh2619@gmail.com or to the email ID as provided while filing an application in Form 10AB. Taking into consideration the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to remand the matter back to the file of the ld. CIT(E) for fresh consideration. Thus, the ground raised by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 23rd January, 2025 at Chennai.