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Facts
The assessee, an association of persons and a club, applied for permanent registration under section 12A(1)(ac)(iii) of the Income-tax Act, 1961. The CIT(E) rejected the application and cancelled the provisional registration granted earlier. The assessee appealed this order.
Held
The Tribunal observed that the assessee was not granted a reasonable opportunity of being heard by the CIT(E). Therefore, the Tribunal set aside the impugned order and restored the matter to the file of the CIT(E) for a fresh decision after providing a reasonable opportunity of hearing.
Key Issues
Whether the CIT(E) erred in rejecting the application for permanent registration without providing a reasonable opportunity of hearing, and whether the cancellation of provisional registration was justified.
Sections Cited
12A(1)(ac)(iii), 12A(ac), 12AB, 12AC, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : None Revenue by : Shri Ajay Kumar Keshari- CIT Date of hearing : 01.04.2025 Date of : .04.2025 pronouncement आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal by the assessee is directed against the order dated 02.12.2024 passed by the Commissioner of Income Tax, Exemptions, [CIT(E)] u/s 12A(1)(ac)(iii) of the Income-tax Act, 1961.
The Assessee has raised following grounds of appeal:-
1. On the facts and in the prevailing circumstances of the case and in law, the learned CIT-Exemption, Pune has erred in rejecting the application in form no 10AB under clause (iii) of section 12A(ac) for permanent registration without giving reasonable opportunity of being heard. The order of the CIT Exemption, Pune may kindly be set aside and permanent registration u/s 12AB may kindly be granted with the restoration of provisional registration granted on 09-02-2022 u/s 12AC r.w.s. 12A(1)(ac)(vi).
2. On the facts and in the prevailing circumstances of the case and in law, the learned CIT-Exemption, Pune has erred in rejecting the application in form no 10AB under clause (iii) of section 12A(ac) for permanent registration in a summary manner, without considering the information and documents available on record viz., Income tax returns for AY 2022-23,2023-24,2024-25 and other mandatory required documents viz., Incorporation certificate and financial Statements filed along with application for permanent registration. The order of the CIT Exemption, Pune may kindly be set aside and permanent registration u/s 12AB may kindly be granted with the restoration of provisional registration granted on 09-02-2022 u/s 12AC r.w.s. 12A(1)(ac)(vi).
3. The Appellate craves the right to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.
A valid notice of hearing has been issued and served upon the assessee on their e-mail ID mentioned on Form No. 36. When the case was called for none appeared on behalf of the assessee. However, considering the fact that impugned order has been passed ex parte we proceed to adjudicate the appeal with the assistance of Ld. DR who also fairly accepted that the issue needs to be restored to the file of Ld. CIT(E).
We have heard Ld. DR and perused the record placed before us. The assessee is an association of persons and is a club and had filed Form No. 10AB for permanent registration u/s 12A(1)(AC)(iii) on 26.06.2024. The assessee has been issued provisional registration granted on 09.02.2022 u/s 12ACRWS12A(1)(AC)(vi). The assessee filed application on Form No. 10AB on 29.06.2024 for getting permanent registration, however few opportunities of hearing were granted by Ld. CIT(E) and on 27.11.2024 i.e. date of hearing, assessee seeked adjournment but Ld. CIT(E) rejected the adjournment application, rejected the application given on Form 10AB filed for permanent registration u/s 12A and also cancelled the provisional registration granted on 09.02.2022.
We observe that reasonable opportunity has not been granted to the assessee and in the larger interest of justice and being fair to both the parties, we deem it fit to restore the matter raised on merits back to the file of Ld. CIT(E) and set aside the impugned order and direct Ld. CIT(E) to provide reasonable opportunity of hearing to the assessee and then decide in accordance with law. However till Ld. CIT(E) decides the application of the assessee filed on Form 10AB for permanent registration u/s 12A of the Act, the provisional registration granted on 09.02.2022 shall be restored to its original place. Assessee is directed to remain vigilant and not to take adjournment. 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 day of April, 2025.