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Facts
The assessee, a Trust running Shri Balaji Mandir, applied for regular registration under Section 12A(1)(ac)(iii) for AY 2018-19 after obtaining provisional registration. The CIT(Exemption) denied the regular registration citing non-compliance with notices, while the assessee contended partial compliance and technical issues with the ITBA portal.
Held
The Tribunal observed that the assessee's submissions were not adequately considered, and a proper opportunity to be heard was not provided. Therefore, the Tribunal set aside the CIT(Exemption)'s order and remitted the matter back for de novo adjudication, directing the CIT(Exemption) to consider all submissions before passing a fresh order.
Key Issues
Whether the CIT(Exemption) was justified in denying regular registration under Section 12A(1)(ac)(iii) without adequately considering the assessee's submissions and providing a proper opportunity of being heard.
Sections Cited
12A, 12A(1)(ac)(iii), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal pertaining to the Assessment Year 2018-19 at the instant of assessee is directed against the order dated 22.08.2024 passed by CIT(Exemption), Pune denying grant of registration u/s.12A of the Income-tax Act, 1961 (in short ‘the Act’).
When the appeal was called for, none appeared on behalf of the assessee despite due service of notice of hearing. We therefore proceed to dispose of the appeal exparte qua the assessee with the able assistance from the ld. Departmental Representative.
Facts of the case emanating from the record are that the assessee is stated to be a Trust running Shri Balaji Mandir. It is Shri Balaji Mandir filing regular returns under the Income-tax Act. The activities of the trust were commenced on 30.03.1965. provisional registration was granted on 16.01.2022 and is valid till 31.03.2024. Application for grant of regular registration u/s.12A(1)(ac)(iii) was filed by the assessee in Form No.10AB on 20.02.2024. The ld.CIT(E) issued notice through ITBA portal on 30.04.2024 calling upon the assessee to upload certain information to which the assessee complied with. Thereafter, ld.CIT(E) issued another notice dated 01.08.2024 pointing out certain discrepancies in the details so filed. In the absence of any compliance from the side of assessee, ld. CIT(E) rejected the provisional registration granted to the assessee on 16.01.2022.
Aggrieved thereby, the assessee is in appeal before the Tribunal.
We have heard the ld. Departmental Representative and perused the record placed before us. We have gone through the impugned order as well as the statement of facts filed before the Tribunal. In the statement of facts filed before us, it is stated that the assessee has made partial compliance to the notices issued and sought time for making compliance to the notices issued thereafter. It is further stated that the response window was not functioning at the relevant point of time. The assessee made submissions however the same were not considered before rejection of application for grant of regular registration and without granting any opportunity. Considering the totality of the facts of the case and the submissions made by the assessee, we in the interest of justice deem it proper to give an opportunity to the assessee. In view thereof, without dwelling into merits of the issue, the issues on merits for the year under appeal are being Shri Balaji Mandir remitted to the file of ld.CIT(Exemption) for denovo adjudication. In such proceedings, ld.CIT(Exemption) shall consider all the submissions of the assessee and pass the order as per the provision of section 250(6) of the Act. Assessee is directed to provide proper email id to the department for receiving the hearing notices from the ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(Exemption) shall be free to proceed in accordance with law. Findings of the ld.CIT(Exemption) are set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 12th day of February, 2025.