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Facts
The appeal was filed by the Assessee against the order of the CIT(E) rejecting its application for registration under section 12AB of the Income Tax Act. There was a delay of 97 days in filing the appeal which was condoned by the tribunal.
Held
The Tribunal condoned the delay in filing the appeal and admitted it for adjudication. It held that in the interest of justice, the assessee should be given one more opportunity to submit credible evidence to prove the genuineness of its charitable activities. The matter was restored to the file of the CIT(E) for a fresh decision.
Key Issues
Whether the assessee should be granted one more opportunity to furnish evidence regarding the genuineness of its charitable activities before the CIT(E) for registration under section 12AB.
Sections Cited
12AB, 12A(1)(ac), 12AA
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Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER DR. MANISH BORAD, AM:
This is an appeal filed by the Assessee directed against the order of ld.Commissioner of Income Tax-Exemption, Pune dated [A] 19.01.2024 passed u/sec.12AB(I)(b)(ii) of the Income tax Act 1961.
Registry has informed that there is a delay of 97 days in filing of the present appeal. Reasons for the delay in filing of the appeal has been mentioned in the application placed on record and perusal of the same, we notice that due to inadvertence, the assessee was not able to read the communication from the Department as the person who is looking after this work did not inform the management. Considering the reasonable cause, we condone the delay and admit the appeal for adjudication.
The Assessee has raised the following grounds of appeal : “1] The learned CTT (E) erred in rejecting the application made by the assessee under clause (iii) of section 12A(1)(ac) for registration of the trust. 2] The learned CIT (1) erred in holding that in the absence of credible evidences furnished by the assessee, he was not satisfied with the genuineness of the activities carried out by the assessee and [A]
hence, the application filed by the assessee was required to be rejected.
3] The assessee submits that there was a reasonable cause on its part in not responding to the notices issued by the learned CIT(E) and hence, request for one more opportunity to present its case before learned CIT(E).
4] The assessee submits that it had commenced its charitable activities and the said activities were carried out in accordance with the objects of the trust and hence, it is submitted that the application for approval u/s 12AA may kindly be granted.
5] The assessee requests for the addition of additional evidences in order to support its case regarding various charitable activities carried out by it and accordingly, submits that the activities carried out are genuine and the learned CIT (E) has erred in rejecting the application for approval under clause (iii) of section 12A(1)(ac).
6] The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal
.”
4. At the outset, the ld.Counsel for the assessee stated that necessary compliance could not be made before the ld.CIT(E) due to certain unavoidable circumstances, assessee could not furnish any reply to the discrepancies communicated to it. The ld.Counsel for the assessee submitted that in the interest of [A] justice, the assessee should be given an opportunity to submit necessary details including credible evidence to prove the genuineness of charitable activity carried out by the assessee to substantiate its case to the satisfaction of the Ld. CIT(E). He, accordingly, submitted that the matter may be restored to the file of ld.CIT(E).
And therefore prayed for one more opportunity to go before the ld.CIT(E) and also to submit necessary details including credible evidence to prove the genuineness of charitable activity carried out by the assessee.
On the other hand, ld.Departmental Representative(ld.DR) for the Revenue supported the order of ld.CIT(E).
We have heard rival contentions and perused the record placed before us. We observe that after the assessee filed certain details in response to the notice issued by ld.CIT(E), certain discrepancies were noticed by him for which he issued another [A] notice asking the assessee to make its submission clarifying the discrepancies a notice issued on ITBA Portal. Even various opportunities of being heard to assessee were given by ld.CIT(E).
However, in the interest of justice and being fair to both the parties and taking a liberal approach, we deem it appropriate to afford one more opportunity to the assessee association to file credible evidences and information to ld.CIT(E) in support of its application file on Form 10AB for getting registration under section 12AB of the Act. The ld.CIT(E) should provide reasonable opportunity of hearing to the assessee and then decide in accordance with law. The Assessee is directed to provide correct Email-Id to the Department for getting notices through ITBA portal. Assessee is also directed to remain vigilant and not to seek adjournment unless otherwise required. Accordingly, [A] grounds of appeals raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 21st February, 2025.
Sd/- Sd/- (VINAY BHAMORE) (DR. MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; �दनांक / Dated : 21st Feb, 2025/ SGR* आदेशक��ितिलिपअ�ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. िवभागीय�ितिनिध, आयकर अपीलीय अिधकरण, “ए” ब�च, पुणे / 5. DR, ITAT, “A” Bench, Pune. गाड�फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary
ITA No.1400/PUN/2024 [A]
आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.