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Facts
The assessee's application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act was rejected by the CIT(E) for non-submission of required documents and a provisional registration certificate. The CIT(E) also found the assessee's existing regular registration invalid.
Held
The Tribunal restored the matter to the file of the CIT(E) to provide the assessee with another opportunity to present its case and submit necessary documents for adjudication afresh.
Key Issues
Whether the CIT(E) was justified in rejecting the registration application without granting a further opportunity for the assessee to submit pending documents.
Sections Cited
12A(1)(ac), 12AB, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, PUNE
Before: SHRI R.K. PANDA & MS. ASTHA CHANDRA
The appeal filed by the assessee is directed against the order dated 31.07.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application of the assessee filed before him on 17.02.2024 in Form No. 10AB under clause (iii) of section 12A(1)(ac) of the Income Tax Act, 1961 (the “Act”).
The assessee has raised the following solitary ground of appeal :- “1. On the facts and in the circumstances of the case and in law Ld. CIT Exemption has erred in not granting registration u/s 12AB without appreciating the facts of the case, and without considering the genuine circumstances which restricted the appellant in sending the reply in time, your appellant prays for and opportunity for submitting the documents and explain the reasons for non-submission and also for granting the registration u/s 12AB of IT Act.”
Briefly stated, the facts of the case are that the assessee filed an application for registration in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act on 17.02.2024 along with annexures. The Ld. CIT(E) pursuant to the said application called for certain information/clarification under the provisions of section 12AB of the Act. 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 through ITBA portal on 01.05.2024 requesting the assessee to upload certain information / clarification viz. date of commencement of activity, date of expiry of provisional registration, details of any other Law applicable for achievement of objectives and the proof of compliance of said Law, proof of identity of main trustees / directors, year-wise list of donations received, list of donors, note on activities along with supporting credible evidence, details of business undertakings etc. The assessee was requested to submit compliance by 17.05.2024. The notice was duly served on the assessee through e-portal and email. However, the assessee did not respond to the said notice. Hence, another notice was issued on 14.06.2024. The compliance to the said notice was due on 21.06.2024. The notice was duly served on the assessee through e-portal. On verification of the details / documents submitted by the assessee in response to the said notice, few discrepancies were observed which were intimated to the assessee by issuing another notice. The discrepancies cited by the Ld. CIT(E) are reproduced below : “On verification of records and details furnished by you, it is seen that you have not furnished the copy of provisional registration under present proceedings. Therefore, the prerequisite for application under clause (iii) of section 12A(1)(ac) of the Act is not fulfilled. 3.1 It is also seen that the assessee has obtained regular registration under section 12AB of the Act read with clause (i) of section 12A(1)(ac) of the Act on 24/09/2021 but the assessee was not registered under section 12A/12AA of the Act prior to 01/04/2021 since the copy of such registration was neither attached with the original application while applying for such registration nor during the present proceedings. Therefore, the regular registration found to be invalid.
It is clear from the above that the assessee was given sufficient opportunity to comply, but it has not submitted any compliance. It seems that the assessee is not having any supporting documents / evidence to submit. 4.1 The assessee has not furnished the copy of provisional registration under section 12AB of the Act hence the prerequisite for the present application under clause (iii) of section 12A(1) (ac) of the Act is not fulfilled in this case. Further, the regular registration obtained by the assessee is also found to be invalid.”
3.1 In view of the above, the Ld. CIT(E) rejected the application filed by the assessee and cancelled the regular registration granted on 28.05.2021 u/s 12AB r.w.s. 12A(1)(ac)(i) of the Act.
4. Dissatisfied, the assessee is in appeal before the Tribunal.
The Ld. AR submitted that all the requisite details/documents were duly filed by the assessee before the lower authorities and the same are available on the portal. He filed a paper book before this Tribunal containing copies of the relevant documents i.e. Form No. 10A dated 21.05.2021 u/s 12A(1)(ac((i) of the Act, Registration Certificate u/s 12A dated 21.09.1973, Form No. 10AB dated 17.02.2024 and Form No. 10AC dated 28.05.2021 (Provisional Registration Certificate) (page 1 to 7 of the paper book refers). Referring to the Bye laws of the assessee trust placed on page 15 to 17 of the paper book, the Ld. AR submitted that the assessee is a very old trust registered since 1973. He, therefore, prayed that the matter may be set aside to the file of the Ld. CIT(E) to adjudicate the same afresh.
The Ld. DR had no objection to the above request of the Ld. AR.
We have heard the Ld. Representative of the parties and perused the records and paper book filed on behalf of the assessee. On the facts and in the circumstances of the assessee’s case enumerated above, we are of the view that it would be judicially expedient and in the interest of justice and fair play if the matter is restored back to the file of Ld. CIT(E) to grant one more opportunity to the assessee to substantiate its case before him and consider the assessee’s application for registration u/s 12A(1)(ac)(iii) afresh in light of the documents/details already available on record and such other supporting documents/evidence as may be called upon during the fresh proceedings and decide the matter on merits, in accordance with facts and law after allowing due opportunity of being heard to the assessee and present its case. The assessee shall provide the requisite support in terms of submitting the relevant details/documentary evidence as may be required/ called upon on the appointed date, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We order accordingly.
In the result, the appeal of assessee is treated as allowed for statistical purposes.
Order pronounced in the open court on 30th January, 2025.