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Facts
The assessee filed applications for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5) of the IT Act. The CIT(E) rejected the applications, citing non-compliance and lack of proper opportunity for the assessee to respond to notices.
Held
The Tribunal set aside the orders of the CIT(E) and remanded the matter back for de novo adjudication. The assessee was directed to provide necessary documents and information, and the CIT(E) was instructed to grant a reasonable opportunity of hearing.
Key Issues
Whether the CIT(E) erred in rejecting the registration and approval applications without providing proper opportunity to the assessee to present their case, and if the matter should be remanded for fresh consideration.
Sections Cited
12A(1)(ac), 80G(5), 12AB, 12(1)(ac)
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: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 31.08.2024 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 14.03.2024 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 15.03.2024.
2. The appellant has raised the following grounds of appeal :-
1. The learned CIT(E) erred in rejecting application filed by the appellant in Form 10AB for approval under sub clause (iii) of 12A(1)(ac) without appreciating that the said action was not justified on facts and in law.
2. Without prejudice to the above ground the assessee submits that the learned CIT(E) failed to appreciate that there was a reasonable cause due to which proper compliance was not made to the notices of hearing and hence, it is prayed that the matter may please be set aside to the file of the ld. CIT(E) to adjudicate the same on merits after affording one more opportunity of being heard to the appellant.
3. The appellant craves leave to add/ alter/ amend any of the grounds of appeal.”
3. 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 14.03.2024. 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 16.05.2024 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 sought some further information. The assessee trust could not & 2274/PUN/2024 respond to the final notice & consequently Ld. CIT, Exemption, Pune 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. 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 due to unavoidable circumstances the assessee trust could not appear/ respond to the final notice issued by Ld. CIT, Exemption, Pune. 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 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. & 2274/PUN/2024 CIT, Exemption, Pune. It is the sole contention of the assessee that if the assessee trust has not appeared/ responded on the date fixed for hearing, Ld. CIT, Exemption, Pune should have had provided at-least one more 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 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.
7. In the result, the appeal filed by the assessee in is allowed for statistical purposes.
: 8. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT