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Facts
The assessee filed an application for registration under Section 12AB of the IT Act, which was rejected by the Ld. CIT, Exemption, Pune due to a delay in filing and alleged discrepancies in information provided. The assessee contended that they were not given adequate opportunity to respond to the notice.
Held
The Tribunal condoned the delay in filing the appeal and set aside the order of the Ld. CIT, Exemption, Pune. The matter was remanded back to the Ld. CIT with a direction to decide the application afresh after providing a reasonable opportunity of hearing to the assessee.
Key Issues
Whether the CIT was justified in rejecting the registration application without providing sufficient opportunity to the assessee, and whether the delay in filing the application should be condoned.
Sections Cited
12AB, 12A(1)(ac), 12A(1)(ac)(vi)
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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 14.03.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.
There is delay of 30 days in filing of the present appeal. We are satisfied with the reasons mentioned in the affidavit for condonation that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay of 30 days and proceed to adjudicate the appeal.
3. Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 14.10.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 28.11.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 25.02.2025. Since the assessee has not furnished any reply in response to notice dated 25.02.2025, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 24.09.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act.
It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from side of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee and, therefore, the impugned order of Ld. CIT, Exemption, Pune is not justified. It was submitted that the last notice was issued on 25.02.2025 asking for various information and other details and the compliance was required to be made on or before 05.03.2025. It was submitted that lots of information was already furnished by the assessee and again various information was required through the above notice dated 25.02.2025 and only seven days were provided to the assessee to furnish the desired information. Ld. AR submitted before the Bench that Ld. CIT, Exemption, Pune ought to have provided one more opportunity to the assessee since the last date to decide the application was 30.04.2025. Accordingly, it was requested before the Bench to set- aside the impugned order passed by Ld. CIT, Exemption, Pune with a direction to provide at least one more opportunity to furnish the requisite documents/information as desired by Ld. CIT, Exemption, Pune.
Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record including the paper-book filed by the assessee. We find that admittedly the assessee made compliance to the initial notice issued by the Ld. CIT, Exemption, Pune. We also find that the trust was provisionally registered upto 31.03.2024 and the application for final registration was required to be filed prior to six months from the expiry of provisional registration i.e. upto 30.09.2023. Since the impugned application was filed on 14.10.2024 Ld. CIT, Exemption, Pune treated the same as filed belatedly and rejected it. In this regard, we find that CBDT vide its Circular No.7/2024 dated 25.04.2024 has extended the last date and provided further time upto 30.06.2024 for filing such an application. Accordingly, the assessee could have filed its application for final registration upto 30.06.2024, however the assessee filed the application belatedly i.e. on 14.10.2024. Admittedly, the application is delayed by 105 days and not by 375 days as observed by Ld. CIT, Exemption, Pune. It is the sole contention of the assessee trust that one more opportunity may kindly be provided to furnish reply before Ld. CIT, Exemption, Pune.
Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we set- aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to condone the delay and decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by