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Facts
The assessee filed an application for registration under section 12A(1)(ac) and for approval under section 80G(5). The CIT, Exemption, Pune rejected the application for registration and denied approval, citing non-compliance with notices and discrepancies. The assessee contended that they were not given a proper opportunity to explain the situation.
Held
The Tribunal found merit in the assessee's argument that a further opportunity should have been provided. Therefore, the Tribunal set aside the CIT's order and remanded the matter back for fresh adjudication, granting the assessee one more opportunity to submit required details and ensuring a reasonable opportunity of hearing.
Key Issues
Whether the CIT properly provided an opportunity of being heard to the assessee before rejecting the application for registration and approval under sections 12A and 80G.
Sections Cited
12A(1)(ac), 80G(5), 12AB, 12A(1)(ac)(vi)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 16.10.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 26.04.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 26.04.2024.
& 2400/PUN/2024 : 2. The appellant has raised the following grounds of appeal :-
1. The ld. CIT Exemption erred in law and on facts in rejection of application for registration u/s 12AB without considering the facts and circumstances of the case.
2. The appellant prays for opportunity so as to explain its case.
3. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing.”
3. 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 26.04.2024. 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 04.06.2024 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. However, Ld. CIT, Exemption, Pune found certain discrepancies in the explanation filed by the assessee and sought some further information & issued another notice on 04.10.2024. Since the assessee has not furnished any explanation in response to the said notice dated 04.10.2024, Ld. CIT, & 2400/PUN/2024 Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 04.10.2023 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act. It is this order against which the assessee is in appeal before this Tribunal.
4. 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, & therefore the order is not justified. It was submitted that Ld. CIT, Exemption, Pune ought to have provided one more opportunity of hearing to the assessee so the assessee can furnish the required information, but Ld. CIT, Exemption, Pune failed to do so, accordingly, it was requested before the Bench to set-aside the order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity to submit the documents in support of application for registration.
5. Ld. DR appearing from the side of the Revenue placed heavy reliance on the orders passed by the subordinate authorities 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 notice issued by Ld. CIT, & 2400/PUN/2024 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. It was further submitted that somehow the notice was missed & the assessee could not respond in time. We find some force in the arguments of Ld. AR & therefore considering the totality of the facts of the case & in the interest of justice and without going into the merits of the case, we 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 give one more opportunity to the assessee to file the requisite details and 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 & 2400/PUN/2024 appropriate order as per law. Thus, the grounds of appeal
raised by the assessee are partly allowed.
7. In the result, the appeal filed by the assessee in is allowed for statistical purposes. ITA No.2400/PUN/2024 :
8. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication.
9. In the result, the appeal filed by the assessee in is allowed for statistical purposes.