BANGIYA SAMSAD NAGAR ROAD,PUNE vs. CIT EXEMPTION, PUNE

This appeal filed by the assessee is directed against the order dated 27.03.2023 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.

There is delay of in filing of the present appeal. We are satisfied with the reasons mentioned in the application for condonation, duly supported by an affidavit 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 filed application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 06.09.2022. 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 21.12.2022 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. Not being satisfied with the explanation furnished by the assessee, Ld. CIT, Exemption, Pune rejected the application for registration u/s 12AB of the IT Act by observing as under :- “3. On verification of the details submitted by the assessee it is seen that the assessee has not furnished the copy of provisional registration under section 12AB of the Income Tax Act, 1961. The assessee has filed application under clause (ii) of section 12A(1)(ac) of the Act. The provisions of said clause are applicable to a trust or institution which is provisionally registered under clause (vi) of the said section. As per the provisions of Rule 17A(2)(e) of the Income Tax Rules, 1962. the Therefore, the copy of order of provisional registration under section 12AB of the Act in form No. 10AC issued under the provisions of clause (vi) of section 12A(1)(ac) of the Act was required to be submitted along with the application, itself. However, the copy of such provisional registration is neither submitted along with the application nor during the present proceedings. Therefore, the prerequisite for application under clause (iii) of section 12A(1)(ac) of the Act is not fulfilled. 3.1 It is also seen that the assessee has obtained regular registration under section 12AB of the Act read with clause (i) of section 12A(1)(ac) of the Act on 10/03/2022 but the assessee was not registered under section 12A/12AA of the Act prior to 01/04/2021 since the copy of such registration was neither attached with the original application while applying for such registration nor during the present proceedings. In fact, it is seen that the assessee submitted a paper through its submission wherein it is stated that it is applying for registration under section 12A for the first time so it does not have any previous registration documents. Therefore, the regular registration found to be invalid. The assessee was requested vide notice dated 09/03/2023 to show cause as to why the application should not be rejected and why the approval granted under section 12AB of the Income Tax Act, 1961 should not be cancelled. The assessee was also given opportunity of being heard vide the said notice. The assessee was specifically informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the registration shall also be liable to be cancelled. The compliance to the said notice was due on 16/03/2023. The notice was duly served on the assessee through e- portal and email. 3.2 However, the assessee neither submitted any explanation to the show cause notice till date nor availed the opportunity of being heard.