Loading judgment…
Facts
The assessee filed an application for registration under section 12A(1)(ac)(iii) of the IT Act. The CIT rejected the application after issuing multiple notices and finding discrepancies, stating the assessee did not provide sufficient proof of its charitable nature and activities.
Held
The Tribunal held that the assessee had made compliance to the notices, but the CIT should have provided at least one more opportunity to explain. Therefore, the Tribunal set aside the CIT's order and remanded the matter back.
Key Issues
Whether the CIT provided adequate opportunity to the assessee to explain its case before rejecting the registration application.
Sections Cited
12A(1)(ac), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the order dated 20.03.2024 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 23.09.2023.
2. Facts of the case, in brief, are, that the assessee is a trust filed its application for registration in Form No.10AB under clause (iii)
& 1069/PUN/2024 of section 12A(1)(ac) of the IT Act on 23.09.2023. 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 10.11.2023 requesting the assessee to upload certain information/clarification. The assessee failed to comply with the said notice. Therefore, another notice was issued on 12.12.2023 which was complied by the assessee but the same was not accessible hence another notice was issued on 14.02.2024. After verifying the submissions of the assessee, various discrepancies were noticed by Ld. CIT, Exemption, Pune and accordingly another notice was issued to the assessee on 29.02.2024 for which the compliance was due on 06.03.2024. The assessee responded to above notice and furnished written submissions before Ld. CIT, Exemption, Pune. After considering the reply of the assessee, Ld. CIT, Exemption, Pune was not satisfied about the charitable nature and the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving of its objects.
& 1069/PUN/2024 Accordingly, the application for registration filed by the assessee is rejected and provisional registration granted to the assessee on 26.11.2021 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the IT Act is also cancelled. 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 Ld. CIT, Exemption, Pune has not provided proper opportunity to the assessee, & therefore the order is not justified. It was submitted that the last notice was issued on 29.02.2024 asking for various information and details and the compliance was required to be made on or before 06.03.2024. It was submitted that lots of information was already furnished by the assessee and again various information was required by the above notice and only five days were provided to the assessee to furnish huge information. It was also submitted that the desired information was furnished by the assessee in a short period of time and if Ld. CIT, Exemption, Pune was not satisfied, he should have had provided one more opportunity to the assessee to explain his case. 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 & 1069/PUN/2024 to submit the documents/explanations/evidences in support of application for registration.
Ld. DR appearing from the side of the Revenue placed heavy reliance on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. On perusal of the impugned order passed by Ld. CIT, Exemption, Pune, we find that admittedly the assessee made compliance to the notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee in the grounds of appeal that if Ld. CIT, Exemption, Pune was not satisfied with the compliance made by the assessee trust he should have had provided at-least one further opportunity to the assessee to explain his case. Considering the totality of the facts of the case and in the interest of justice without going into the 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, & 1069/PUN/2024 Pune and produce requisite/ desired 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 partly allowed.
6. In the result, the appeal filed by the assessee in is allowed for statistical purposes.
: 7. The assessee has filed this appeal against the order dated 20.03.2024 passed by Ld. CIT, Exemption, Pune, which is also the subject matter of appeal in . As we have already adjudicated and set-aside the same order in the appeal of the assessee in the above appeal in ITA No.1069/PUN/2024 becomes infructuous hence dismissed.
In the result, the appeal filed by the assessee in is dismissed.
To sum up, the appeal of the assessee in is allowed for statistical purposes and the