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Facts
The assessee's application for permanent registration under Section 12A(1)(ac)(iii) was rejected by the Ld. CIT(E) due to partially submitted details and a lack of clarification regarding a water supply activity deemed inconsistent with the trust's objectives. The assessee alleged that sufficient opportunity of hearing was not provided before the rejection.
Held
The Tribunal observed that the assessee was not given adequate opportunity of being heard. Consequently, the Tribunal set aside the order of the Ld. CIT(E) and remitted the matter back for fresh adjudication, instructing the CIT(E) to provide proper opportunity to the assessee and directing the assessee to be vigilant.
Key Issues
Whether the Ld. CIT(E) was justified in rejecting the application for permanent registration under Section 12A(1)(ac)(iii) without providing sufficient opportunity of hearing to the assessee.
Sections Cited
12AB, 12A(1)(ac)(iii)
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 : 23.04.2025 आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of the assessee is directed against the order of Ld. CIT(E) dated 26.09.2024 framed u/s 12AB of the Income Tax Act 1961.
Assessee has raised following grounds of appeal:-
1. On the facts and in the circumstances of the case and in law Ld. CIT Exemption has erred in not granting registration u/s 12AB without appreciating the facts of the case, and without affording an appropriate opportunity of hearing, or giving any show cause to submit the additional say, your appellant prays for and opportunity for submitting the documents and explain the reasons for non-submission and also for granting the registration u/s 12AB of IT Act. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice.
3. When the case was called for none appeared on behalf of the assessee in spite of proper notice through RPAD sent to the assessee. Perusal of the grounds indicates that the assessee is aggrieved with the impugned order having been passed without affording proper opportunity of hearing.
We have heard Ld. DR and perused the record placed before us. The assessee filed an application for permanent registration u/s 12A(1)(ac)(iii) of the Act on Form 10AB on 20.03.2024. The details called for Ld. CIT(E) were partly submitted and for want of certain clarification about the second activity relating to water supply which was not found in line with the objectives of the trust, Ld. CIT(E) rejected the application. We notice that sufficient opportunity of being heard was not provided to the assessee. We therefore in the larger interest of justice and being fair to both the parties remit the issue of permanent registration u/s 12(A)(1)(ac)(iii) of the Act to the file of Ld. CIT(E) for afresh adjudication for which proper opportunity shall be granted to the assessee. We also direct the assessee to remain vigilant and not to take unnecessary adjournment. The impugned order of the Ld. CIT(E) is set aside and 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 23rd day of April, 2025.