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Facts
The assessee, a trust, applied for registration under Section 12A(1)(ac)(iii) of the IT Act. The CIT, Exemption, Pune, rejected this application and cancelled its provisional registration under Section 12AB read with Section 12A(1)(ac)(vi) after not being satisfied with the information provided by the assessee, which led to the current appeal.
Held
The Tribunal observed that the assessee had complied with the notices and should have been given a further opportunity to explain its case. Consequently, the Tribunal set aside the CIT's order and remanded the matter back for a fresh decision after providing the assessee a reasonable opportunity of hearing, with a directive for the assessee to comply with future notices.
Key Issues
Whether the CIT, Exemption, was justified in rejecting the application for registration under Section 12AB without providing adequate opportunity to the assessee to explain its case, despite initial compliance.
Sections Cited
12AB, 12A(1)(ac), 12A(1)(ac)(iii), 12A(1)(ac)(vi)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, 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 26.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB 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.
3. 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 10.09.2023. With a view to verify the genuineness of the 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 06.11.2023 requesting the assessee to upload certain information/clarification. The desired information was furnished by the assessee. However, Ld. CIT, Exemption, Pune was not satisfied with the explanation furnished by the assessee trust and rejected the application for registration and also cancelled the provisional registration granted to the assessee on 27.05.2021 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. DR appearing from the side of the Revenue placed heavy reliance on the order passed by the subordinate authority and requested to confirm the same.
5. 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. 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, Pune and produce requisite/ desired documents/information in support of the application for registration, 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.