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Facts
The assessee filed applications for regular registration u/s.12A and approval u/s.80G. The CIT(E) rejected these applications after finding that the assessee failed to provide explanations for discrepancies, despite partial compliance.
Held
The Tribunal set aside the orders of the CIT(E) and remitted the issue back for denovo adjudication, directing the CIT(E) to afford a reasonable opportunity to the assessee to prove the genuineness of its activities.
Key Issues
Whether the CIT(E) correctly rejected the applications for registration and approval without affording sufficient opportunity to the assessee, and if the matter should be remitted for fresh consideration.
Sections Cited
12AB(1)(ac)(iii), 80G(5), 12A(1)(ac)(iii), 80G(5)(iii), 12A, 80G
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Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned two appeals at the instance of assessee are against the rejection of applications for regular registration u/s.12AB(1)(ac)(iii) and approval u/s.80G(5) of the Act respectively framed by ld.CIT(E) dated 17.03.2025 and 22.11.2024 respectively.
None appeared on behalf of the assessee despite due service of notice of hearing. With the assistance of Ld. Departmental Representation, we have perused the record and notice that the assessee filed an applications for registration u/s.12A(1)(ac)(iii)/80G(5)(iii) of the Act by filing Form 10AB on 17.03.-2025 and 22.11.2024 respectively. Thereafter, ld.CIT(E) called for various details mentioned in pages 3 to 7 of the impugned order. Though there was partial compliance but thereafter, ld.CIT(E) rejected the applications for registration u/s.12A of the Act as well as approval u/s.80G(5) stating that the assessee has not furnished any explanation to the discrepancies communicated to it. Therefore, it is presumed that assessee has nothing to say in the matter.
Having heard the ld. Departmental Representative, perusing the record placed before us and considering the facts and circumstances of the case, we deem it appropriate to remit the issue of regular registration u/s.12A of the Act as well as approval u/s.80G(5) of the Act to the file of ld.CIT(E) for denovo adjudication. Needless to say that ld.CIT(E) shall afford reasonable opportunity to the appellant to prove the genuineness of the activities. Assessee can make necessary submissions with regard to the grounds of appeal raised before us. After considering the submissions of the assessee, ld.CIT(E) shall decide the assessee’s applications in accordance with law by passing a speaking order. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Impugned orders are set aside and the effective grounds of appeal raised by the assessee in both the appeals are allowed for statistical purposes.
4. In the result, both the appeals of the appellant are allowed for statistical purposes. Order pronounced on this 16th day of May, 2025.