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Facts
The assessee's applications for registration under Section 12A and 80G of the Income Tax Act were rejected by the CIT(Exemption). The assessee failed to provide requested details due to a family medical emergency of the President's father-in-law, which prevented them from coordinating with their consultant.
Held
The Tribunal held that there was a sufficient cause for non-compliance due to the medical emergency. The impugned orders were set aside, and the case was remanded to the CIT(E) for fresh adjudication, providing an opportunity to the assessee to present their case.
Key Issues
Whether the assessee had a reasonable cause for non-compliance in providing details to the CIT(E), and whether the rejection of applications for registration under Section 12A and 80G was justified without granting further opportunity.
Sections Cited
12A, 80G, 12AB, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
ORDER PER DR. DIPAK P. RIPOTE, AM: These two appeals filed by the Assessee are against the separate orders of ld.Commissioner of Income Tax(Exemption)- Pune, both dated 29.04.2025 rejecting the Assessee’s application for registration u/s.12A of the Act and 80G of the Act. For the sake of convenience, these two appeals were heard together and are being disposed of by this common order. We treat the appeal in ITA & 2017/PUN/2025 [A] No.2017/PUN/2025 as lead case. The grounds of appeal
raised by the Assessee are as under :
1. On the facts and in the circumstances the case, CIT (Exemption) has eared in Law and on facts, in rejecting the application in form 10AB U/S 12AB and consequently rejected application for granting certificate under 80G of the Income-tax Act, 1961, without considering audited accounts filed as appellant had filed audited account and income Tax Return for last three years. Therefore based on principal of natural justice the matter be restore to the file CIT (Exemption) for fresh adjudication.
2. On the facts and in the circumstances of the case and also in law, that the appellant could not file proof of activity of trust due to circumstances beyond control as as the committee member who manage the activity was not attending matters due to ill health of his father in law, who expired on 16/06/2025. Due such family issue she could not take step to coordinate with consultant for filing details within short time allowed by CIT (Exemption) Therefore committee members of the appellant fail to provide details due ill health of his father in law and there is gross violation of principal of natural justice and opportunity should be given to represent fact before the CIT(E).
The appellant craves leave to add, to alter and to amend the above grounds of appeal.”
Findings and Analysis : 2. We have heard both the parties and perused the records. The is against the order of ld.Commissioner of Income Tax(Exemption)-Pune, dated 29.04.2025 rejecting the Assessee’s application for registration u/s.12A of the Act. & 2017/PUN/2025 [A] 3. It is observed that ld.CIT(E) rejected the Assessee’s application only on the ground that Assessee failed to file details in response to the notice dated 04.04.2025. Ld.AR for the Assessee submitted that Father-in-law of Ms.Bhike Kishor Chaudhari who is the President of the Assessee-Trust was critically ill and subsequently died on 16.06.2025. Ld.AR invited our attention to the Affidavit of the President of the Trust. Ld.AR therefore, requested that there was valid cause for non-compliance and hence, one more opportunity may kindly be provided.
We have perused the Affidavit. It is noted that Assessee was prevented from filing the details before ld.CIT(E) due to the Medical Emergency in her Family. Therefore, we are convinced that there was sufficient cause for non-compliance. In these facts and circumstances of the case, we set-aside the order of ld.CIT(E) to ld.CIT(E) for denovo adjudication. Ld.CIT(E) shall provide opportunity to the assessee. The Assessee shall file necessary documents before the ld.CIT(E). Accordingly, Grounds of appeal raised by the Assessee are allowed for statistical purpose.
In the result, appeal of the Assessee in is allowed for statistical purpose. 3 ITA Nos.2016 & 2017/PUN/2025 [A] 80G : 6. Assessee’s application for registration u/.s.80G(5) was rejected on identical grounds as mentioned in rejection order for registration u/s.12A of the Act. Since we have already set-aside the order u/s.12A to ld.CIT(E) for denovo adjudication above, we set-aside the order u/s.80G(5) for denovo adjudication. Ld.CIT(E) shall provide opportunity to the assessee. Assessee shall be provided opportunity of hearing. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the Assessee in is allowed for statistical purpose.