JAMA MASJID TRUST TALOJA,PANVEL, RAIGAD vs. CIT EXEMPTION, PUNE

This appeal filed by the assessee is directed against the order dated 08.10.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 12AB of the IT Act.

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 12(1)(ac) of the IT Act on 31.05.2024. 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, notices were issued by Ld. CIT, Exemption, Pune through ITBA portal on 25.06.2024, 15.09.2024 and 26.09.2024 requesting the assessee to upload certain information/clarification as mentioned in the notices. The assessee failed to comply with the above notices. Therefore, Ld. CIT, Exemption, Pune rejected the application for registration and also cancelled the provisional registration granted to the assessee on 06.04.2023 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 the notices were issued through ITBA portal and also through email and no physical notice was served on the assessee. It was submitted that the office bearers of the trust were not well versed with technology and therefore could not check the email regularly which resulted in ex-parte order by Ld. CIT, Exemption, Pune. The assessee trust came to know about the ex-parte order only while filing the income tax return for assessment year 2024-25 on ITBA portal. It was accordingly requested before the Bench to set-aside the ex-parte order passed by Ld. CIT, Exemption, Pune and further requested to provide one opportunity to submit desired/required documents in support of application for registration u/s 12A before Ld. CIT, Exemption, Pune.

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 three opportunities were given to the assessee and on all the three occasions, the assessee failed to respond since notices of hearing were sent on email and due to lack of technical knowledge the office bearers could not check the email hence could not file any reply to any of the notices. 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