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Facts
The assessee, Shri Saibaba Bhakt Mandal, applied for registration under Section 12AB of the IT Act. The CIT, Exemption, Pune rejected the application and cancelled its provisional registration because the assessee failed to furnish further information requested in a notice, citing paucity of time (7 days given for compliance).
Held
The Tribunal set aside the CIT, Exemption's order, concluding that the assessee deserved another opportunity to provide the requested details. The matter was remanded back to the CIT, Exemption for fresh consideration of the application after providing a reasonable opportunity of hearing to the assessee, who is directed to comply without seeking adjournments.
Key Issues
Whether the CIT, Exemption was justified in rejecting the application for registration under Section 12AB without providing adequate opportunity to the assessee to comply with the notice and furnish the required details, especially when only seven days were provided for compliance.
Sections Cited
12AB, 12(1)(ac), 12A(1)(ac)(vi)
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
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 24.10.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.
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 23.05.2024. With a view to verify the genuineness of 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 24.06.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. On verification of said information, Ld. CIT, Exemption, Pune found certain discrepancies and issued another notice on 08.10.2024 requesting the assessee to furnish further details/information in this regard on or before 15.10.2024. Since the assessee has not complied with the notice dated 08.10.2024, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted on 19.03.2022 u/s 12AB read with section 12A(1)(ac)(vi) of the IT Ac. 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 and, therefore, the impugned order of Ld. CIT, Exemption, Pune is not justified. It was submitted that the last notice was issued on 08.10.2024 asking for various information and other details and the compliance was required to be made on or before 15.10.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required through the above notice dated 08.10.2024 and only seven days were provided to the assessee to furnish the desired information. Due to paucity of time, the assessee could not comply with the above notice. Accordingly, it was requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune with a direction to provide at least one more opportunity to furnish the requisite documents/information as desired by Ld. CIT, Exemption, Pune.
Ld. DR appearing from the side of the Revenue relied on the order of Ld. CIT, Exemption, Pune 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 trust that one more opportunity may kindly be provided to furnish reply before Ld. CIT, Exemption, Pune. In this regard, it was contended before the Bench that due to paucity of time the reply could not be filed by the assessee trust & in such kind of situation, Ld. CIT, Exemption, Pune ought to have provided at-least one more opportunity to the assessee to substantiate his case. Considering the totality of the facts of the case, & also in the interest of justice and without going into 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/ submissions in support of the application for registration without taking any adjournment under any pretext, 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 allowed for statistical purposes.