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Facts
The assessee, a Trust operating in a rural area, applied for permanent registration u/s 12A. Despite partial compliance and requesting more time, the CIT(E) rejected the application and cancelled provisional registration without providing sufficient opportunity, passing an ex-parte order.
Held
The Tribunal held that the CIT(E) did not provide adequate opportunity to the assessee before passing an ex-parte order. The order of CIT(E) was set aside, and the issue was remitted back for fresh adjudication, with a direction for a speaking order and proper opportunity to be given.
Key Issues
Whether the CIT(E) provided adequate opportunity of being heard to the assessee before rejecting the 12A application and cancelling the provisional registration.
Sections Cited
12AA, 12A, 12AB, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, B BENCH, PUNE
Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : None Revenue by : Shri Ajay Kumar Keshari- CIT Date of hearing : 08.04.2025 Date of pronouncement : 22.04.2025 आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of the assessee is directed against the order of Ld. CIT Exemption u/s 12AA of the Income- tax Act, 1961 dated 02.12.2024.
Assessee has raised following grounds of appeal along with mentioning statement of facts:-
1. The Appellant Shri Vaishnav Parivar Bahuudeeshiy Sevabhavi Sanstha is a Trust and had applied for 12A. This trust is operates in rural area of Jalna and its trustees are hardly educated.
2. Subsequently, AO sent a questionnaire on 5th Aug. 24 with last date of reply 20 Aug. 24 1.e. 15 days which was duly replied by the assessee. As the part of the proceedings AO sent next questionnaire on 21 Nov. 24 with last date 27th Nov, 24 1.e. only 6 days were given.
3. Before giving any other opportunity to trustee AD passed the 12A rejection order whereas proceeding limitation date is 31 Dec. 24
4. The trustees are not very familiar with such proceedings and hardly understands the importance. 6 days period was not enough for them to reply. AO did not provide any other opportunity of being heard though he had around 28 days remaining for proceeding limitation.
5. In addition, mother of their Authorized Representative (AR) was admitted in the hospital. She was installed a pacemaker in her heart. AR was unable to reply that time.
When the case was called for none appeared. On the previous date of hearing on 27.02.2025 communicated to the assessee through RPAD, none appeared. Today also there is no representative from assessee’s side. However with the assistance of Ld. DR and perusal of records we note that the impugned order rejecting the assessee’s application for registration u/s 12A of the Act is ex-parte and the issue on merits needs to be restored to the file of Ld. CIT(E) for afresh adjudication. Ld. DR raised no objection.
We have heard the Ld. DR and perused the record placed before us.
Assessee’s application for permanent registration u/s 12A(1)(ac)(iii) of the Act filed on Form 10AB on 26.092024 has been rejected and the provisional registration granted on 06.09.2023 u/s 12AB has also been cancelled. We find that the assessee made partial compliance but Ld. CIT(E) gave little time for the compliance of notice on 27.11.2024. The impugned order has been passed, before the assessee could furnish the details.
We therefore considering the facts and circumstances and in the larger interest of justice and being fair to both the parties deem it appropriate to remit the issue of permanent registration u/s 12A of the Act back to the file of Ld. CIT(E) for afresh adjudication. Needless to mention proper opportunity of hearing shall be granted to the assessee. Impugned order is set aside and the issue on merits are remitted to the file of Ld. CIT(E) for passing a speaking order as contemplated u/s 250(6) of the Act. Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless required for reasonable cause. Effective Grounds of appeal
raised by the assessee are allowed for statistical purposes.
7. In the result appeal of the assessee is allowed for statistical purposes. Order pronounced on this 22nd day of April, 2025.