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Facts
The assessee filed an application for registration under Section 12A(1)(ac) and approval under Section 80G. The CIT rejected the application due to non-compliance with notices and failure to provide sufficient details, despite the assessee citing unavoidable circumstances.
Held
The Tribunal found that the assessee had complied with initial notices but faced difficulties responding to the final notice. The Tribunal set aside the CIT's order, remanding the matter for fresh consideration after providing the assessee with a reasonable opportunity of hearing.
Key Issues
Whether the CIT was justified in rejecting the registration and approval application without providing sufficient opportunity to the assessee, especially when the assessee cited unavoidable circumstances.
Sections Cited
12A(1)(ac), 12AB, 80G(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
आदेश / ORDER
PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 27.11.2024 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.
ITA No.202/PUN/2025 :
The appellant has raised the following grounds of appeal :-
“1) The Lo CIT Exemption erred in passing the order for rejection of application for registration 12AA of the Income tax Act without considering the adjournment request filed by the appellant. 2) The Ld CIT Exemption erred in not allowing sufficient time to submit detalls which were required to be compiled from outside sources when the concerned parties were out of station and travelling. Order for cancellation of registration has been passed without allowing sufficient tirse to the appellant and hence needs to be set aside. 3) Without prejudice to the above, the matter/issue of registration may kindly be restored to the Ld. CIT Exemption, Pune, for fresh consideration. 4) The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal and/or to lay the additional evidences at the time of hearing.”
Facts of the case, in brief, are, that the assessee 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 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 by Ld. CIT, Exemption, Pune through ITBA portal on 05.08.2024 requesting the assessee to upload certain information/clarification. Since assessee failed to comply with the above notice, another notice was issued on 04.10.2024. The desired information was furnished by the assessee. However, Ld. CIT, Exemption, Pune was not satisfied with the explanation furnished by the assessee trust and sought some further information. The assessee trust could not respond to the final notice & consequently Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 27.05.2021 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.
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 due to unavoidable circumstances the assessee trust could not appear/ respond to the final notice issued by Ld. CIT, Exemption, Pune. 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 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 the initial notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that if the assessee trust has not appeared/ responded on the date fixed for hearing, Ld. CIT, Exemption, Pune should have had provided at-least one more opportunity to the assessee to explain his case. Considering the totality of the facts of the case and in the interest of justice 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.
In the result, the appeal filed by the assessee in is allowed for statistical purposes.
ITA No.203/PUN/2025 :
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 well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication.
In the result, the appeal filed by the assessee in is allowed for statistical purposes.
To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purpose.
Order pronounced on this 29th day of April, 2025.