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Facts
The assessee filed applications for registration under section 12A(1)(ac) and approval under section 80G(5). The CIT, Exemption, rejected the applications, citing non-compliance with notices and failure to provide explanations, after cancelling provisional registration. The assessee contended that they were not given a proper opportunity to explain.
Held
The Tribunal set aside the order of the CIT and remanded the matter back for fresh adjudication. The CIT was directed to provide a reasonable opportunity of hearing to the assessee for deciding both the registration and approval applications.
Key Issues
Whether the CIT properly afforded an opportunity to the assessee before rejecting the registration and approval applications, and whether the matter should be remanded for fresh consideration.
Sections Cited
12A(1)(ac), 80G(5), 12AB, 17A(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 07.12.2024 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 29.06.2024 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 29.06.2024.
& 293/PUN/2025 : 2. Facts of the case, in brief, are, that the assessee has filed application for registration in Form No.10AB under clause (iii) of section 12(1)(ac) of the IT Act on 29.06.2024. 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 on 09.08.2024 by Ld. CIT, Exemption, Pune through ITBA portal requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 27.11.2024. Since the assessee has not furnished any explanation in reply to above said notice, Ld. CIT, Exemption, Pune was of the opinion that the assessee has not complied with the provisions of section 12AB(1)(b)(i) of the IT Act as well as the provisions of Rule 17A(2) of the IT Rules and therefore 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.
& 293/PUN/2025 3. Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee, & therefore the order is not justified. It was submitted that somehow the last notice was missed by the office bearers & in the absence of knowledge of any such notice the compliance could not be made before Ld. CIT(E). It was submitted that Ld. CIT, Exemption, Pune should have had provided another opportunity to the assessee to explain his case. Accordingly, it was requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity to submit the documents/explanation in support of application for registration.
Ld. DR appearing from the side of the Revenue placed heavy reliance on the orders passed by the subordinate authorities and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. We find that admittedly the assessee made compliance to first notice issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that if the assessee failed to submit reply on the specified date Ld. CIT, Exemption, Pune ought to have provided at-least one more opportunity to the assessee to explain his case. Considering the & 293/PUN/2025 totality of the facts of the case & in the interest of justice and without going into the merits of the case, we 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 documents/information in support of the application for registration, 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.
6. In the result, the appeal filed by the assessee in is partly allowed for statistical purposes. ITA No.292/PUN/2025 :
7. 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 adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as