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Facts
The assessee, Shree Shyam Pariwar, applied for registration under Section 80G(5)(iii) and Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) rejected both applications and cancelled provisional certificates due to the assessee's failure to comply with notices, as the secretary, Mangal Lal Agarwal, was suffering from illness during the compliance period.
Held
The Tribunal, considering the affidavit explaining the non-compliance due to illness and the lack of objection from the Ld. DR, restored both appeals to the file of the CIT(E). The CIT(E) is directed to provide a fresh opportunity to the assessee to be heard and consider all documentary evidence.
Key Issues
Whether the rejection of applications for registration under Section 80G and 12A due to non-compliance caused by the assessee's illness should be remitted for fresh consideration.
Sections Cited
80G, 80G(5)(iii), 12A, 12A(1)(ac)(iii), 2(15), 13(3), 12AB(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH: KOLKATA
Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]
ORDER / आदेश Per Pradip Kumar Choubey, JM: Both these appeals are preferred by the assessee against the order of Commissioner of Income Tax (Exemption), Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 21.03.2025.
In the above case, the assessee filed an application on 26.09.2024 for registration u/s 80G(5)(iii) of the Act in form no. 10AB. Notice has been issued asking the assessee to furnish the reply in response to the notice the assessee submitted various details along with supporting documents. The Ld. CIT(E) perused the submission made by the assessee and thereafter requested the assessee to submit amended trust deed Affidavit which duly notarized but the assessee failed to submit any compliance, as a result of which, the application filed by the assessee treated as non-maintainable and provisional certificate has also been cancelled.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The Ld. AR has only prayed by filing Affidavit that the Ld. CIT(E ) passed an order only because of non-compliance. He fairely submitted that indeed assessee was ill, as a result of which the assessee could not make any compliance before the Ld. CIT(E). His prayer is that for the interest of justice the assessee should be afforded an opportunity to cure the procedural delay.
The Ld. D.R did not raise any objection in remitting the appeal of the assessee to the file of Ld. CIT( E) for fresh consideration.
Upon hearing the submission of the counsel of the respective parties, We have perused the Affidavit filed by the assessee which is as under:
1126/Kol/2025 Assessment Year: (Tulsidham)Shree Shyam Pariwar We have also gone through the order of Ld. CIT(E ), and there is no denying to this fact that the order has been passed when the assessee failed to submit / furnish reply to the quarry made by the Ld. CIT(E ). Keeping in view the Affidavit filed by the assessee and for the interest of justice, we are inclined to restore the appeal of the assessee before the Ld. CIT(E ) with a direction to hear the assessee and then pass afresh order after considering the documentary evidence as per law.
Now we shall adjudicate in ITA NO. 1126/Kol/2025.
Brief facts of the case of the assessee is that the assessee filed an application for registration u/s 12A(1)(ac)(iii) in Form 10AB a notice was issued and in response to the notice the assessee submitted various details with supporting documents which was carefully perused by the Ld. CIT( E) and thereafter asked the assessee to furnish the details of the donation undertaking for Section 2(15), 13(3) and 12AB(ii)and details of IDs of trustees etc. The assessee failed to submit any compliance and reply as a result of which the application of the assessee has been rejected and provisional certificate issued to the assessee has also been cancelled.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The LD. A.R has only prayed that the appeal be remitted back to the file of Ld. CIT(E ) for fresh consideration as during the period the assessee was suffering from illness and he could not be able to furnish the reply from the quarry made by the Ld. CIT(E ).
The ld. DR did not raise any objection in remitting the appeal of the assessee back to the file of Ld. CIT(E ).
Upon hearing the submission of the counsel of the respective parties, We have perused the Affidavit filed by the assessee which is as under:
We have also gone through the order of Ld. CIT(E ), and there is no denying to this fact that the order has been passed when the assessee failed to submit / furnish reply in the quarry made by the Ld. CIT(E ). Keeping in view the 1126/Kol/2025 Assessment Year: (Tulsidham)Shree Shyam Pariwar Affidavit filed by the assessee and for the interest of justice, we are inclined to restore the appeal of the assessee before the Ld. CIT(E ) with a direction to hear the assessee and then pass an afresh order after considering the documentary evidence as per law.
In the result, both the appeals of the assessee are allowed for statistical purposes.
Order is pronounced in the open court on 25th August, 2025