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Facts
The assessee filed an application for registration under section 12AA of the IT Act. The CIT rejected the application after issuing several notices, to which the assessee failed to fully comply, citing discrepancies. The assessee's appeal is against this rejection.
Held
The Tribunal set aside the order of the CIT and remanded the matter back for fresh consideration. The CIT was directed to decide the application afresh after providing the assessee with a reasonable opportunity to be heard and to comply with the notices.
Key Issues
Whether the CIT was justified in rejecting the application for registration without affording proper opportunity to the assessee, and if remanding the matter is appropriate.
Sections Cited
12AA, 12A(1)(ac), 10AB, 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 04.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AA of the IT Act.
When the appeal was called for hearing, neither anybody appeared on behalf of the appellant-assessee nor any adjournment application was filed despite due service of notice of hearing.
Therefore, we proceed to dispose of this appeal after hearing Ld. DR as well as on the basis of material available on record.
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) of section 12A(1)(ac) of the IT Act on 29.09.2023. 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 24.11.2023 requesting the assessee to upload certain information/clarification. However, the assessee failed to comply with the said notice. Thereafter, Ld. CIT, Exemption, Pune issued another notice on 09.01.2024. In reply to the said notice, the desired information was furnished by the assessee. On verification of the information furnished by the assessee, Ld. CIT, Exemption, Pune found various discrepancies, therefore, issued another notice on 15.02.2024. However, assessee could not respond to the said notice. Therefore, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 30.11.2022 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. 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. DR 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 except the last notice. It is the sole contention of the assessee in the grounds of appeal that if one opportunity is provided to the assessee to submit the reply in response to the notice issued by Ld. CIT, Exemption, Pune he will make proper compliance before Ld. CIT, Exemption, Pune. 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