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Facts
The assessee applied for registration under Section 12AB of the IT Act. The CIT rejected the application and cancelled the provisional registration due to the assessee's failure to furnish information in response to a notice, alleging it was an ex-parte order.
Held
The Tribunal held that the CIT's order was passed ex-parte due to an inadvertent error by the assessee in missing the last notice. The Tribunal set aside the ex-parte order and remanded the matter back to the CIT to decide the application afresh after providing a reasonable opportunity of hearing.
Key Issues
Whether the rejection of registration application by CIT without affording proper opportunity and based on ex-parte assessment is justified?
Sections Cited
12AB, 12A(1)(ac), 12A
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Income Tax Appellate Tribunal, PUNE BENCH “A”, 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 03.02.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.
Facts of the case, in brief, are, that the assessee has applied for registration in Form 10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 30.09.2024. 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, notice was issued. In reply to the said notice, the desired information was furnished by the assessee. On verification of the information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies, therefore, issued another notice on 15.01.2025 and asked the assessee to furnish various other details. Since the assessee has not furnished any explanation in reply to above notice, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 30.11.2023 under Item (A) of sub-clause (vi) of clause (ac) of sub- section (1) of section 12A 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 passed by Ld. CIT, Exemption, Pune is not justified. Ld. AR submitted that most of the information desired by Ld. CIT, Exemption, Pune were furnished before him. Ld. AR further submitted that somehow last notice was missed by the assessee and could not be replied which resulted in ex-parte order passed by Ld. CIT, Exemption, Pune. Ld. AR also furnished certain documents which were desired by Ld. CIT, Exemption, Pune and requested the bench to admit the same as additional evidences. Accordingly, Ld. AR requested before the Bench to set-aside the impugned ex-parte order passed by Ld. CIT, Exemption, Pune and further requested to grant registration u/s 12AB of the IT Act.
Ld. DR appearing from 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. We find that admittedly the assessee has complied with initial notice, however, due to inadvertent error the last notice could not be seen by the assessee which resulted in unfortunate ex-parte order passed by Ld. CIT, Exemption, Pune. Ld. AR also contented that most of the documents desired by Ld. CIT, Exemption, Pune were furnished before him and remaining documents are produced before the bench as additional evidences which may kindly be admitted and registration be granted u/s 12AB of the IT Act. On the other hand, Ld. DR submitted that since the assessee has furnished additional evidences, the matter needs to be remanded back to the file of Ld. CIT, Exemption, Pune to consider the application for registration afresh in the light of additional evidences.
Considering the totality of the facts of the case, & also in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the ex-parte order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law and also in the light of additional evidences furnished before this Bench and after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information/ submissions and additional evidences, if any, in support of the application for registration without taking any adjournment under any pretext, otherwise, Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.