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Facts
The assessee filed an application for registration under section 12AA of the Income Tax Act. The CIT rejected the application, stating that the assessee did not provide satisfactory information and also cancelled the provisional registration granted earlier. The assessee appealed this decision.
Held
The Tribunal found that the assessee had made compliance to initial notices but contended that the CIT did not provide adequate opportunity to substantiate its case. The Tribunal set aside the CIT's order and remanded the matter back for a fresh decision after providing a reasonable opportunity to the assessee.
Key Issues
Whether the CIT erred in rejecting the registration application without providing sufficient opportunity to the assessee to furnish information and demonstrate compliance.
Sections Cited
12AA, 12(1)(ac), 12AB, 12A(1)(ac)(vi)
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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER MANISH BORAD, AM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 04.03.2024 passed by Ld. CIT, Exemption, Pune.
2. This appeal is directed against the order passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AA of the Act. 3. Facts of the case, in brief, are that the assessee filed application for registration in Form No.10AB under clause (iii) of and 912/PUN/2024 section 12(1)(ac) of the IT Act on 21.09.2023. 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 13.11.2023 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 about the registration of application and issued another notice on 15.02.2024 requesting the assessee to furnish further details/information in this regard. After perusal of information, as submitted by the assessee on 01.03.2024 in reply to notice dated 15.02.2024, Ld. CIT, Exemption, Pune was not satisfied with the same and rejected the application for registration. Ld. CIT, Exemption, Pune also cancelled the provisional registration granted to the assessee on 11.03.2022 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act.
Aggrieved the assessee is in appeal before this Tribunal.
Ld. AR of the assessee submitted before us that Ld. CIT, Exemption, Pune has not provided proper opportunity to the and 912/PUN/2024 assessee and, therefore, the impugned order of Ld. CIT, Exemption, Pune is not justified. It was submitted that the last notice was issued on 15.02.2024 asking for various information and details and the compliance was required to be made on or before 21.02.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required through the above notice dated 15.02.2024 and only six days were provided to the assessee to furnish the desired information. 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.
On the other hand, Ld. Departmental Representative supporting the orders of the lower authorities requested before the Bench to confirm the impugned order of Ld. CIT, Exemption, Pune.
We have heard rival submissions and perused the record placed before us. 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 that if the reply of the assessee was not satisfactory Ld. CIT, Exemption, Pune ought to and 912/PUN/2024 have provided at-least one more opportunity to the assessee to substantiate his case. Considering the totality of the facts of the case, 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 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.
8. In the result, the appeal filed by the assessee in is allowed for statistical purposes.
: 9. The assessee has filed this appeal against the order dated 04.03.2024 passed by Ld. CIT, Exemption, Pune, which is also the subject matter of appeal in . As we have