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Facts
The assessee filed an application for registration under section 12A(1)(ac) of the IT Act. The CIT, Exemption, Pune issued two notices seeking information and clarifications. The assessee complied with the first notice but failed to respond to the second notice, leading to the rejection of the application.
Held
The Tribunal found merit in the assessee's argument that an opportunity for further compliance should have been given, especially since only five days were allowed for the second notice. The Tribunal set aside the CIT's order and remanded the matter for a fresh decision.
Key Issues
Whether the CIT was justified in rejecting the registration application without granting further opportunity when the assessee missed a deadline due to a missed notice.
Sections Cited
12AA, 12A(1)(ac)
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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 20.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AA 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 12A(1)(ac) of the IT Act on 30.09.2023. 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 04.12.2023 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 24.02.2024 requesting the assessee to furnish further details/information in this regard on or before 01.03.2024. Since the assessee has not complied with the notice dated 24.02.2024, Ld. CIT, Exemption, Pune rejected the application for registration. 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 the order passed by Ld. CIT, Exemption, Pune is not justified. It is further submitted that somehow the assessee trust missed the last notice & failed to submit any reply therefore Ld. CIT, Exemption, Pune rejected the application for registration. Accordingly, Ld. AR requested before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune & requested to remand the matter back to him with a direction to decide the application for registration afresh.
4. Ld. DR appearing from the side of the Revenue did not raise any serious objection to the request of the assessee.
We find that admittedly the assessee made compliance to the initial notice issued by Ld. CIT, Exemption, Pune, but the subsequent notice could not be answered by him. It is the sole contention of Ld. AR that if the assessee has not furnished requisite information/documents on the requisite date, one further opportunity should have been provided to him by Ld. CIT, Exemption, Pune, since only five days time was allowed to respond against the notice. We find some force in the arguments of Ld. AR & considering the totality of the facts of the case & in the interest of justice, without going into the merits of the case, deem it appropriate to 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 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