Loading judgment…
Facts
The assessee filed an application for registration under Section 80G. The CIT(E) rejected the application due to non-compliance with notices and failure to appear. The assessee cited a delay in receiving notices and a misunderstanding of the requirements.
Held
The Tribunal condoned the delay in filing the appeal. Finding merit in the assessee's explanation for non-compliance, the Tribunal set aside the CIT(E)'s order and restored the issue for reconsideration.
Key Issues
Whether the CIT(E) was justified in rejecting the application for Section 80G registration without considering the merits, and if the assessee should be granted another opportunity to furnish information.
Sections Cited
80G, 12A, 12AA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, HYDERABAD “B” BENCH : HYDERABAD
Before: SHRI MANJUNATHA G & SHRI K. NARASIMHA CHARY
ORDER PER MANJUNATHA G, A.M. : This appeal has been filed by the assessee against the order dated 13.02.2024 of the learned CIT(E), Hyderabad, in rejecting the application filed by the assessee in Form No.10AB for registration u/sec.80G of the Income Tax Act, 1961 [in short “the Act”].
At the very outset, there is a delay of 176 days in filing the appeal before the Tribunal. The assessee has filed
2 ITA.No.1099/Hyd./2024 an affidavit explaining the reasons for the delay. We are satisfied with the delay reasons explained by the assessee in filing the appeal before the Tribunal and accordingly, the delay of 176 days in filing the appeal before the Tribunal is condoned and proceed the decide the appeal on merits.
The brief facts of the case are that the assessee has filed an application in Form No.10AB seeking for registration u/sec.80G of the Act. During the proceedings before the learned CIT(E), notice dated 27.10.2023 was issued to produce copy of Memorandum of Association /Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response to the said notice, the assessee has submitted certain details. The learned CIT(E) issued show cause notice dated 17.01.2024 and called upon the assessee to submit other information as per earlier notice dated 27.10.2023. The assessee neither appeared nor filed any details. Therefore, the learned CIT(E) dismissed the application filed by the assessee in Form No.10AB and rejected the registration u/sec.80G of the Act.
3 ITA.No.1099/Hyd./2024 4. Learned Counsel for the Assessee submitted that the subsequent notice issued by the learned CIT(E) dated 17.01.2024 was mislead the attention of the assessee and the assessee was under bonafide belief that whatever information submitted in response to notice dated 27.10.2023 is sufficient and the learned CIT(A) will consider the application filed by the assessee in Form No.10AB for registration u/sec.80G of the Act. The assessee came to know the rejection of application filed by the assessee when the Chartered Accountant who logged into the ITBA portal for filing return of income for the assessment year 2024- 2025 and finds that the application filed by the assessee has been rejected by the learned CIT(E). Therefore, he submitted that the assessee could not file other information called for by the learned CIT(E) since the notice issued by the learned CIT(E) was not reached to the assessee. Therefore, he submitted that giving a chance to file relevant details called for by the learned CIT(E), the assessee will be able to file all the details in support of application filed in 4 ITA.No.1099/Hyd./2024 Form No.10AB and, therefore, the matter may be remitted back to the learned CIT(E) for consideration of the issue.
The Learned DR, on the other hand, supported the order of the learned CIT(E) and submitted that the assessee could not file relevant evidences called for by the learned CIT(E) in support of it’s application filed in Form No.10AB seeking for registration u/sec.80G of the Act. In absence of relevant details, the learned CIT(E) rightly rejected the application filed by the assessee and, therefore, the order of the learned CIT(E) should be upheld.
We have heard both the parties, considered the arguments of either side. We find that the assessee is registered u/sec.12AA of the Act has filed an application in Form No.10AB of the Act seeking for registration u/sec.80G of the Act. The learned CIT(E) rejected the application filed by the assessee for want of information. The assessee has explained the reasons for not appearing before the learned CIT(E) and argued that if one more opportunity has been given, the relevant details in support of it’s application filed in Form No.10AB will be furnished to the satisfaction to the 5 ITA.No.1099/Hyd./2024 learned CIT(E). In our view, when the assessee is a Trust or Society registered u/sec.12A of the Act, the application filed for grant of exemption u/sec.80G of the Act needs to be considered on merits. In the present case, the learned CIT(E) rejected the application filed by the assessee for want of information. Since the assessee has explained the reasons for not filing the details as called for, in our considered view, one more opportunity of hearing needs to be given to the assessee to justify it’s application filed in Form No.10AB. Thus, we set aside the order of the learned CIT(E) and restore the issue back to the file of learned CIT(E) for re-consideration of the issue. The assessee is directed to file relevant information in support of it’s application filed in Form No.10AB seeking for registration u/sec.80G of the Act without seeking any adjournment under any pretext. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
6 ITA.No.1099/Hyd./2024 Order pronounced in the open Court on 03.03.2025.