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Facts
The assessee's application for regular registration under Section 12A(1)(ac) of the Income Tax Act was dismissed by the CIT(E), and their provisional registration was cancelled. The assessee appealed this order.
Held
The tribunal observed that the assessee failed to make proper compliance in satisfying the CIT(E) about the genuineness of its activities and compliance with other laws. However, considering the larger interest of justice, the tribunal decided to provide one more opportunity to the assessee.
Key Issues
Whether the CIT(E) was justified in rejecting the application for regular registration and cancelling the provisional registration without providing adequate opportunity. Whether the assessee has established the genuineness of its activities.
Sections Cited
12A, 12A(1)(ac), 12AB, 12A(1)(ac)(vi), 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, B BENCH, PUNE
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : Shri Kimya Kudva Revenue by : Shri Ajay Kumar Keshari-CIT Date of hearing : 28.04.2025 Date of pronouncement : 06.05.2025 आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of the assessee is directed against the order u/s 12A r.w.s.12AB of the Income Tax Act, dated 10.12.2024 dismissing the assessee’s application for regular registration u/s 12A(1)(ac) of the Act and also cancelling the provisional registration granted to assessee on 27.05.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act.
Assessee has raised following grounds of appeal:-
1. erred in rejecting the appellant's application for registration u/s 124(1)(ac)(i) on grounds that he was not satisfied about the genuineness of the activities and compliance of requirements of law for time being in force as are material for the purpose of achieving its objects, when the appellant had provided adequate evidence of its of charitable objects and activities
2. failed to appreciate the submissions & evidence placed on record by the appellant to establish that the intent & genuineness of activities of the Trust were in accordance with the charitable objects of the Trust,
3. erred in cancelling the provisional registration granted under sec 12AB rws 12A(1)(ac)(vi) of the It Act, 1961.
4. The appellant pleads for directions cancelling the order of CIT Exemption and a direction to approve the appellant's application under section 12A of the Income Tax Act, 1961.
5. Without prejudice, the appellant prays that the matter be restored to the file of the CIT (Exemption), to be heard & decided in accordance with law after providing reasonable opportunity to satisfy the CIT(Exemption) with adequate evidence and explanations about the genuineness of the charitable activities carried out by the appellant.
The appellant pleads for directions allowing the appeal and craves leave to, add to, alter, amend, modify or withdraw any or all grounds of appeal.
With the assistance of both the parties we observe that the application of the assessee filed on 01.06.2024 for regular registration u/s 12A(1)(ac)(iii) of the Act dated 01.06.2024 was rejected since the assessee could not make proper compliance by satisfying the Ld. CIT(E) above the genuineness of activities and compliance of requirement of any other law.
We therefore considering the grounds of appeal raised by the assessee and also in the larger interest of justice deem it appropriate to provide one more opportunity to the assessee and remit back the issue of regular registration u/s 12A(1)(ac)(iii) of the Act back to the file of Ld. CIT(E) for afresh adjudication for which a reasonable opportunity of hearing shall be provided to the assessee for filing request details. Assessee is also directed not to take unnecessary adjournment unless otherwise required for reasonable cause. Grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 06th day of May, 2025.