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Facts
The assessee, a charitable organization, filed an application for regular registration under section 12A(1)(ac)(iii). The CIT(E) issued notices and a questionnaire, but the assessee failed to provide explanations or attend hearings, leading to the dismissal of the application. The assessee appealed, praying for an opportunity to explain its case.
Held
The Tribunal, noting the assessee's failure to comply with notices but also considering the interest of justice, decided to grant one more opportunity to the assessee. The issue of regular registration was remitted back to the CIT(E) for fresh adjudication with a reasonable opportunity of hearing.
Key Issues
Whether the assessee should be granted an additional opportunity to present its case before the CIT(E) for obtaining registration under section 12A(1)(ac)(iii) after failing to comply with previous notices.
Sections Cited
12AB, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE “B” BENCH : PUNE
Before: DR. MANISH BORAD & SHRI VINAY BHAMORE
Sindhukanya CIT (Exemption), Pune Loksanchalit Sadhan Kendra, Katta Post Katta Tal-Malvan, Malvan Sindhudurg, Maharashtra vs. PAN : AAIAS 0071 N (Appellant) (Respondent) For Assessee : None For Revenue : Shri Amit Bobde, CIT-DR Date of Hearing : 01.09.2025 Date of Pronouncement : 03.09.2025 ORDER PER DR. MANISH BORAD, AM:
This appeal at the instance of the assessee is directed against the order of Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] dated 04/08/2023 framed under section 12AB of the Income Tax Act, 1961 (“Act”).
When the case is called for, none appeared on behalf of the assessee. With the assistance of ld. DR and on perusal of the records, we notice that the application filed by the assessee for regular registration u/s. 12A(1)(ac)(iii) of the Act
2 ITA.No.1644/PUN./2025 (Sindhukanya Loksanchalit Sadhan Kendra) dated 28/02/2023 filed in Form No. 10AB has been dismissed for non-furnishing of explanation to the discrepancies communicated by the Ld.CIT(E). The ld. DR raised no objection, if the assessee is granted one more opportunity of hearing by the Ld.CIT(E).
We have heard ld.DR and perused the records placed before us. We observe that assessee is a charitable organization and filed application for regular registration u/s. 12A(1)(ac)(iii) on 28/02/2023. The Ld.CIT(E) issued a detailed questionnaire and requested it to submit compliance by 06/06/2023. Certain information was submitted, and again another notice was issued on 26/07/2023 mentioning about the discrepancies and the assessee was required to make compliance by 31/07/2023, but in spite of notice duly served to the assessee through email, assessee neither submitted explanation to the show-cause notice nor availed opportunity of being heard. The Ld.CIT(E) apart from observing about the non-compliance of the assessee has further referred in para 5 of the impugned order that the assessee is not having provisional registration u/s. 12AB of the Act as on the date of presentation of application.
Before us the assessee has raised the grounds of appeal
praying for an opportunity to explain its case. In the larger interest of justice and being fair both the parties, we deem it appropriate to afford one more opportunity to the assessee and 3. ITA.No.1644/PUN./2025 (Sindhukanya Loksanchalit Sadhan Kendra) accordingly remit back the issue of regular registration u/s. 12A(1)(ac)(iii) of the Act raised in the grounds of appeal in the instant appeal to the file of the Ld. CIT(E) for a fresh adjudication for which a reasonable opportunity of hearing shall be provided to the assessee. The assessee is also directed to remain vigilant and not to take adjournments unless otherwise required for reasonable cause. The effective grounds of appeal raised by the assessee stands allowed for statistical purposes.
In the result, appeal of the Assessee is allowed for statistical purposes.
Order pronounced in the open Court on 03.09.2025.