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Facts
The assessee applied for registration under Section 12AA/12(1)(ac) and subsequently provisional registration under Section 12AB. The CIT (Exemption) rejected the application and cancelled the provisional registration, citing the assessee's failure to respond to a final clarification notice after initial compliance.
Held
The Tribunal set aside the CIT (Exemption)'s order, concluding that the assessee was not afforded a proper opportunity to reply to the final notice. The case was remanded back to the CIT (Exemption) for a fresh decision after providing the assessee a reasonable opportunity of hearing and compliance.
Key Issues
Whether the CIT (Exemption) erred in rejecting the assessee's registration application and cancelling provisional registration without providing adequate opportunity to respond to all notices.
Sections Cited
12AA, 10AB, 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 VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 20.08.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AA of the IT Act.
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 26.02.2024. 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 27.04.2024 requesting the assessee to upload certain information/clarification. The assessee failed to comply with the said notice. Therefore, Ld. CIT, Exemption, Pune issued another noticed on 12.06.2024. The desired information was furnished by the assessee. On verification of said information furnished by the assessee, Ld. CIT, Exemption, Pune found certain discrepancies in the information furnished by the assessee and issued another notice on 30.07.2024. However, the assessee could not reply to the said notice and Ld. CIT, Exemption, Pune in the absence of any reply rejected the application for registration and also cancelled the provisional registration granted to the assessee on 18.10.2021 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.
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 further submitted that somehow the last notice was missed by the assessee and the reply could not be filed to the above said notice. Accordingly, it was prayed 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.
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 notices issued by the Ld. CIT, Exemption, Pune. It is the sole contention of the assessee that only the last notice could not be complied by the assessee and it was the prayer of Ld. AR that one more opportunity may kindly be granted 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