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Facts
Keshab Uma Charitable Trust's application for provisional income tax exemption under Section 12A(i)(ac)(iii) was rejected in limine by the CIT(E) for failure to furnish replies to queries. The appellant contended that due to a change in email and office addresses, they did not receive communications, leading to a violation of natural justice principles.
Held
The Tribunal, noting the in limine rejection and the assessee's submission of provisional approval (Form 10AC) and undertaking to furnish documents, restored the appeal to the CIT(E) for fresh adjudication. The assessee is to be given a reasonable opportunity of hearing to place all relevant documents.
Key Issues
Whether the rejection of an application for registration under Section 12A without proper communication and opportunity of hearing violates principles of natural justice, requiring remand for fresh adjudication.
Sections Cited
12AA, 12A(i)(ac)(iii), 12A(1)(ac)(vi)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH KOLKATA
Before: SHRI DUVVURU RL REDDY & SHRI RAKESH MISHRA
O R D E R
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of CIT (Exemption) (hereinafter referred to as “the Ld. CIT(E)”) dated 25.09.2024.
The grounds of appeal raised by the assessee are reproduced as un- der:
The CIT (Exemptions) issued a Rejection Order of the provisional income tax exemption of the appellant Keshab Uma Charitable Trust under Section 12AA as the appellant failed to furnish reply to queries mentioned in the hearing notice. The appellant seeks leave to appeal against the Rejection Order on the grounds that the appellant was not granted sufficient time to comply with the queries and was not given any further opportunity of being heard before pass- ing the Rejection Order violating the Principles of Natural Justice.
The brief facts of the case of the assessee are that the assessee had filed the application in Form No.10AB for registration u/s 12A(i)(ac)(iii) of the Income-tax Act, 1961 (the Act). A notice was issued by the Ld. CIT(E)
Being aggrieved with the order of Ld. CIT(E), the assessee has pre- ferred the appeal before us.
The Ld. AR has prayed that assessee may be given opportunity to place all the documents required for the registration before the ld. CIT (E) as the Ld. CIT(E) has passed the order not on merits but in limine and adequate opportunity of being heard had not been provided to the as- sessee.
The ld. DR did not raise any objection to this request.
Upon hearing the submissions of the respected parties, and after going through the order passed by the ld. CIT (E) we find that application for registration u/s 12A(1)(ac)(iii) of the Act was rejected in limine by the Ld. CIT (E) when the assessee failed to produce relevant documents and evidence. Before us the assessee has filed copy of Form No. 10AC dated 27.05.2021 granting provisional approval u/s 12A(1)(ac)(vi) and also un- dertakes that it will place all the relevant documents necessary for regis- tration before the Ld. CIT (E). It has been argued by the AR that the as- sessee had changed its e-mail address and the office address so the com- munications must have gone to the earlier e-mail which were not func- tional, hence no communications was received.
Keeping in view the submission made by the assessee and consid- ering the order passed by the Ld. CIT (E), we are inclined to restore the appeal of the assessee before the Ld. CIT (E) for fresh adjudication after
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 17th July, 2025.