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Income Tax Appellate Tribunal, “B” BENCH, PUNE
Before: SHRI R.K. PANDA & MS. ASTHA CHANDRA
आदेश / ORDER
PER ASTHA CHANDRA, JM :
The two appeals filed by the assessee are directed against the two separate orders dated 08.07.2024 and 13.09.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune (“CIT(E)”) rejecting the application(s) for grant of registration u/s 12A and approval u/s 80G of the Income Tax Act, 1961 (the “Act”). For the sake of convenience, both these appeals were heard together and are being disposed of by this common order.
There is a delay of 118 days in filing of this appeal before the Tribunal for which the assessee has filed an affidavit explaining the reasons for such delay. On perusal of the same, we are satisfied that the delay in filing of appeal is not intentional or deliberate but has occurred for the reasons mentioned in the affidavit. After hearing both the sides, we are of the view that the delay is attributable to the sufficient cause. We, therefore, in light of the decisions of the Hon'ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 167 ITR 471 (SC) and in the case of Inder Singh Vs. The State of Madhya Pradesh reported in 2025 LiveLaw (SC) 339, condone the said delay and proceed to decide the appeal.
Ld. CIT(E) in rejecting the application for registration u/s 12A of the Act while relates to the order of the Ld. CIT(E) in denying the approval u/s 80G of the Act.
Form No.10AB on 27.02.2024 for registration of the trust under clause (iii) of section 12A(1)(ac) of the Act. With a view to verify the genuineness of the 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 through ITBA portal on 02.05.2024 requesting the assessee to upload certain information/clarification contained therein under the provisions of section 12AB(1)(b)(i) of the Act seeking compliance by 17.05.2024. As the assessee failed to respond, another show cause notice was issued on 14.06.2024 requesting it to show cause as to why the application should not be rejected and why the registration granted under section 12AB of the Act should not be cancelled in the event of failure to comply with the said notice. However, the assessee neither submitted the above mentioned compliance nor availed the opportunity of being heard by due date of 21.06.2024. Having being not satisfied about the genuineness of the activities of the trust as well as compliance to the requirements of any other law for the time being in force, the Ld. CIT(E) rejected the application of the assessee for grant of registration u/s 12A of the Act and also cancelled the provisional registration granted earlier u/s 12AB of the Act by observing as under: “5. The information / details were called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. These are the basic details required to ascertain the overall nature of the activities of the assessee and are directly relevant to the present proceedings. However, the assessee has failed to comply despite giving sufficient opportunities as discussed above including an opportunity of being heard. 5.1 Thus, the assessee has failed to furnish the details called for under the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961 to verify the genuineness of activities of the trust / institution and to verify the 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. 5.2 In absence of the compliance to the above requirement, it is not possible to arrive at any conclusion about the genuineness of activities of the assessee and the compliance to the 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. 5.3 It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not complied to the same. It seems that the assessee is not having any supporting documents / evidence to submit. The assessee has failed to comply with the provisions of section 12AB(1)(b)(i) of the Income Tax Act, 1961. Hence, the undersigned is unable to draw any satisfactory conclusion about genuineness of activities of the assessee and the compliance to the 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. Therefore, the undersigned has left no alternative but to reject the application.
In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 14/10/2021 under section 12AB read with section 12A(1)(ac)(vi) of the Income Tax Act, 1961 is hereby cancelled.”
Aggrieved with such order of the Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds:
“On facts and in law, without prejudice to each other, 1. The Ld. CIT Exemption erred in not granting the Registration u/s 12A of the Income Tax Act. 2. The appellant craves its right to add to or alter the Grounds of Appeal at any time before or during the course of hearing of the case.”
“On facts and in law, without prejudice to each other, 1. The Ld. CIT Exemption erred in not granting the Registration u/s 80G of the Income Tax Act. 2. The appellant craves its right to add to or alter the Grounds of Appeal at any time before or during the course of hearing of the case.”
It is the submission of the Ld. AR that since the Ld. CIT(E) has rejected the grant of registration u/s 12A of the Act and cancelled the provisional registration granted earlier and failure on the part of the assessee to furnish any response to the discrepancies pointed out by him, he refused to grant approval u/s 80G of the Act.
The Ld. AR at the outset submitted that the Ld. CIT(E) has rejected the assessee’s application for registration under section 12A of the Act due to non compliance of the notices issued by the Ld. CIT(E). He submitted that such non-compliance was not intentional but it happened due to non- receipt of notices by the assessee as the notices seem to have been issued to the email id of the erstwhile consultant of the assessee who did not inform the assessee regarding the same.
The Ld. DR, on the other hand, supported the order of the Ld CIT(E) and submitted that the assessee chose to remain non-compliant inspite of adequate opportunity granted by the Ld. CIT(E) and therefore his order should be upheld.
We have heard Ld. Representatives of the parties, perused the material available on record. It is an admitted fact that the assessee failed to respond to the notice(s) issued by the Ld. CIT(E) due to which the Ld. CIT(E) rejected the application of the assessee u/s 12A of the Act. The assessee’s application for grant of approval u/s 80G has also been rejected by the Ld. CIT(E) on the similar grounds. Further, since the application for grant of registration u/s 12A of the Act was rejected and the provisional registration granted earlier was cancelled, he also rejected the application for grant of approval u/s 80G of the Act.
Considering the totality of the facts and in the circumstances of the case enumerated above and in the interest of justice, we deem it proper, to set aside the impugned order(s) of the Ld. CIT(E) and restore the issue(s) to his file with a direction to grant one final opportunity to the assessee to explain and substantiate its case to his satisfaction by filing the requisite details as may be required/ called upon and decide both the applications of the assessee under section 12A and 80G of the Act afresh as per fact and law. The assessee is also hereby directed to remain vigilant and make his submissions on the appointed date without seeking any adjournment under any pretext unless required for the sufficient cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order(s) as per law. We hold and direct accordingly. The grounds raised by the assessee in both the appeals are accordingly allowed for statistical purposes.
In the result, both the appeals in & 709/PUN/2025 filed by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 26th August, 2025.