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Facts
The assessee, a charitable society, applied for registration under section 80G and 12A of the Income Tax Act. The Commissioner of Income Tax (Exemption) rejected the application ex-parte due to non-prosecution, as the assessee failed to respond to multiple hearing notices or file submissions.
Held
The Tribunal noted that the CIT(Exemption)'s orders were ex-parte and based on the assessee's non-prosecution. In the interest of justice, the Tribunal set aside these orders and remitted the matter back to the ld. CIT(Exemption) for fresh adjudication.
Key Issues
Whether the CIT(Exemption) was justified in rejecting an application for registration under Section 80G and 12A ex-parte due to the assessee's non-prosecution.
Sections Cited
80G, 12A, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH, KOLKATA
Per Duvvuru RL Reddy, Vice-President (KZ):- Both the appeals are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Exemption), Kolkata both dated 30th November, 2024 passed on the application of the assessee filed in Form No. 10AB for registration under clause (iii) of second proviso to sub-section (5) of section 80G and 12A of 1 & 2659/KOL/2024 Rotary Calcutta Mahanagar Trust the Income Tax Act. In other words, the ld. CIT(Exemption) has rejected the application of the assessee for grant of registration under section 12A(1)(ac)(iii) on account of non-prosecution of the application.
Brief facts of the case are that the assessee is a Charitable Society and engaged in various charitable activities. Notice dated 23.10.2024 was issued to the assessee through ITBA fixing the hearing on 29.10.2024, but there was no compliance to the notice. Again, notice was issued to the assessee on 13.11.2024 fixing the date of hearing on 18.11.2024, but again no reply was received from the assessee.
The ld. CIT(Exemption) has given several opportunities to the assessee to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Exemption). Thereafter the ld. CIT(Exemption) dismissed both the appeals ex-parte on 30.11.2024
Dissatisfied with the decision of the ld. CIT(Exemption), the assessee preferred appeals before the Tribunal.
At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned orders be set aside and remitted back to the file of ld. CIT(Exemption) for deciding it afresh.
The ld. D.R., on the other hand, submitted that the assessee should be more vigilant about its obligation towards prosecuting & 2659/KOL/2024 Rotary Calcutta Mahanagar Trust income tax proceedings. He argued to uphold the orders passed by the ld. CIT(Exemption).
We have duly considered the rival contentions and gone through the record carefully. The impugned orders are ex-parte orders wherein application of the assessee for grant of registration under section 12A has been rejected for want of prosecution. In the interest of justice, we deem it appropriate to set aside these orders and remit the issue to the ld. CIT(Exemption) for fresh adjudication.
In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 24/04/2025.
Sd/- Sd/- (Rakesh Mishra) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 24th day of April, 2025 Copies to :(1) Rotary Calcutta Mahanagar Trust, C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite–213, 2nd Floor, Kolkata-700069 (2) Commissioner of Income Tax (Exemption), Kolkata, Income Tax Office, 10B, Middleton Road, Kolkata-700071 (3) CIT - ; 3