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Facts
The assessee filed applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5) of the IT Act. Notices were issued by the CIT, Exemption, seeking information, but the assessee failed to comply, leading to the rejection of the applications.
Held
The Tribunal found that the assessee's delay in filing the application was a bona fide and unintentional error. Therefore, the Tribunal set aside the order of the CIT and remanded the matter back for fresh adjudication, directing the assessee to comply with the notices.
Key Issues
Whether the rejection of the application for registration and approval due to non-compliance with notices, despite a bona fide error in filing, warrants a remand for fresh consideration?
Sections Cited
12A(1)(ac), 80G(5), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 28.02.2025 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 28.09.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 28.09.2024.
and 1107/PUN/2025 : 2. 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 28.09.2024. 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, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 06.11.2024 requesting the assessee to upload certain information/clarification. The assessee did not comply to this notice. Last and final notice was issued on 29.01.2025 to furnish desired information & the assessee was specifically asked to show cause why the application for registration should not be rejected. Since the assessee did not comply to this notice also and sought for adjournment, Ld. CIT, Exemption, Pune rejected the application filed by the assessee.
It is the above order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is and 1107/PUN/2025 unjustified. Ld. AR submitted that since no reply was furnished before Ld. CIT, Exemption, Pune the application for approval u/s 12AB of the IT Act was rejected. Ld. AR submitted that the desired information is very well available with the assessee & if one opportunity is provided to him he will be able to produce all such desired information before Ld. CIT, Exemption, Pune. Accordingly, Ld. AR requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune, involving the issue of registration u/s 12AB of the IT Act & requested to remand the matter back to him with a direction to decide the application for registration u/s 12AB of the IT Act afresh.
Ld. DR appearing from side of the Revenue supported the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. Counsels from both the sides & perused the material available on record including the written submission furnished by the counsel of the assessee. In this regard, we find that admittedly two notices were issued by Ld. CIT, Exemption, Pune & both the above notices were not complied by the assessee. It is the sole contention of Ld. Counsel of the assessee that if the and 1107/PUN/2025 assessee has not furnished requisite information/documents on the requisite date, one further opportunity should have been provided to him by Ld. CIT, Exemption, Pune. Apart from above, it was also submitted that the provisional registration was valid upto assessment year 2024-25 and the assessee was under impression that the application for final registration can be filed upto 30.09.2024 which also falls within six months before 31.03.2025. Accordingly, it was contended that instead of last day of financial year, the last day of assessment year was considered for the purpose of calculation of six months period, & accordingly the application was filed on 30-09-2024, which is a bona-fide and unintentional error. It was the sole prayer of Ld. AR that the delay may kindly be condoned & one more opportunity may kindly be provided to the assessee, so that he can furnish all the desired documents/evidences and supporting evidences before Ld. CIT, Exemption, Pune in support of application for registration u/s 12AB of the IT Act.
We find force in the above arguments of Ld. Counsel of the assessee that the error was bona-fide & unintentional and therefore considering the totality of the facts of the case & in the interest of and 1107/PUN/2025 justice and without going into the 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 treat the application as filed in time 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 Ld. CIT, Exemption, Pune and produce requisite documents/information 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 partly allowed.
8. In the result, the appeal filed by the assessee in is allowed for statistical purposes.
9. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo and 1107/PUN/2025 adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication.
In the result, the appeal filed by the assessee in