PAYAL SOCIAL AND CULTURAL ORGANISATION,KOLKATA vs. C.I.T.(EXEMPTION), KOLKATA

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ITA 2052/KOL/2024Status: DisposedITAT Kolkata07 May 2025Bench: Shri Pradip Kumar Choubey (Judicial Member), Shri Rakesh Mishra, Accountant Member] Ι.Τ.Α. No. 2052/Kol/2024 Assessment Year: NA | | | |---|---| | Payal Social and Cultural Organization | Vs. CIT(Exemption), Kolkata | | (PAN: AAAAP 5441 P) | | | Appellant / (अपीलार्थी) | Respondent / प्रत्यर्थी | | Date of Hearing / सुनवाई की तिथि | 24.04.2025 | |---|---| | Date of Pronouncement/ आदेश उद्घोषणा की तिथि | .05.2025 | | For the assessee / निर्धारिती की ओर से | Shri Miraj D Shah, AR | | For the 3 pages

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Facts

The assessee, a charitable organization, received provisional registration under Section 12A of the Income Tax Act. It subsequently applied for regular registration, but the CIT(Exemption) rejected the application *in limine* on the grounds that the assessee failed to submit a response.

Held

The Tribunal held that the assessee should have been given an opportunity to present its facts before the CIT(Exemption). Consequently, the appeal was restored to the Ld. CIT(Exemption) with a direction to consider the case afresh and pass an order in accordance with law.

Key Issues

Whether the rejection of an application for regular registration under Section 12A by the CIT(Exemption) without affording the assessee an opportunity to respond is legally valid.

Sections Cited

12A

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Income Tax Appellate Tribunal, “B” BENCH: KOLKATA

Before: Shri Pradip Kumar Choubey&Shri Rakesh Mishra]

ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Exemption)-Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 09.08.2024.

Brief facts of the case of the assessee is that the assessee being a charitable organization applied for registration under new regime of charitable trust mentioning Assessment Year: 00 Payal Social and Cultural Organization sub-clause (vi) of Clause (ac) of Section 12A(1) of the Act and were allowed registration u/s 12A in terms of “order for provisional registration” on 31/12/2021. The trust has submitted application in form no. 10AB on 07/02/2024 for regular registration but the Ld. CIT(E) rejected the application in limine as the assessee failed to submit response.

Being aggrieved and dissatisfied the assessee preferred an appeal before us.

The Ld. A.R has only submitted before us that the assessee has to be given an opportunity to place all the facts before the Ld. CIT(E ).

Contrary to that the Ld. D.R did not raise any objection.

Upon hearing the submission of the counsel of the respective parties and on perusal of the facts, it appears that the assessee is a charitable organization under the Society Registration Act, he granted provisional registration, his application for granting registration u/s 12A(1)(ac)(iii) has been rejected as there was no reply or any response from the assessee.

Going over the facts of the case as well as considering the submission of the assessee, we are inclined to restore the appeal of the assessee before the Ld. CIT(E ) with a direction to the Ld. CIT(E ) to consider the case of the assessee and pass a afresh order as per law.