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Facts
The assessee applied for registration under Section 12AB of the IT Act. The CIT, Exemption, Pune rejected the application and cancelled the provisional registration due to discrepancies and non-furnishing of details. There was a delay in filing the appeal before the tribunal, which was condoned.
Held
The tribunal condoned the delay in filing the appeal. Considering the medical reasons cited by the assessee for not responding to notices and the interest of justice, the tribunal set aside the CIT's order and remanded the matter back for fresh adjudication.
Key Issues
Whether the CIT was justified in rejecting the application for registration and cancelling the provisional registration without affording adequate opportunity, considering the circumstances for non-compliance.
Sections Cited
12AB, 12A(1)(ac), 12A(1)(ac)(vi)
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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 11.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.
There is delay 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 and proceed to adjudicate the appeal.
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 30.09.2023. 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 26.02.2024 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 03.08.2022 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.
When the appeal was called for hearing neither appeared on behalf of the appellant-assessee nor any adjournment application was filed despite due service of notice of hearing, therefore, we proceed to decide the appeal on the basis of material available on record as well as after hearing Ld. DR.
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. DR and perused the material available on record. We find that admittedly the assessee has complied with initial notice, however, due to medical reasons, the secretary of the institution could not reply to the subsequent notices which resulted in unfortunate ex-parte order passed by Ld. CIT, Exemption, Pune. The sole request of the assessee is that if one opportunity is provided he will submit all the desired information before Ld. CIT, Exemption, Pune in support of application for registration u/s 12AB of the IT Act.
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 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 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