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Facts
The assessee filed an application for registration under section 12A(1)(ac) of the IT Act and for approval under section 80G(5) of the IT Act. The CIT, Exemption, Pune rejected the application for registration ex-parte without providing a proper opportunity of hearing to the assessee, despite the assessee requesting an adjournment.
Held
The Tribunal noted that the assessee had complied with the initial notices and that the CIT should have provided at least one more opportunity for the assessee to explain their case. Therefore, the Tribunal set aside the order of the CIT and remanded the matter back for a fresh decision after providing a reasonable opportunity of hearing to the assessee.
Key Issues
Whether the CIT erred in rejecting the assessee's application for registration and approval ex-parte without providing adequate opportunity for hearing.
Sections Cited
12A(1)(ac), 80G(5), 12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 21.10.2024 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 24.05.2024 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 30.05.2024.
& 2452/PUN/2024 : 2. The appellant has raised the following grounds of appeal :-
1. Notice was issued by Commissioner of Income Tax (Exemption) on 26th June 2024, as per notice I (Vitthal Nawandhar, appellant) have provided all the documents in response through E- proceeding of Income tax portal on 9th July 2024, i.e. before due date.
2. Further notice were issued by the Commissioner of Income Tax (Exemption) after their observation, I did not responded through IT portal as due to busy schedule of ITR filing , I require more time for preparation of documents and requested for the extension for more period. Screenshot of mail is attached herewith.
3. As per further notice It is been asked to provide detail about notes on activity, Copies of invoices/bills in respect of expenditure and registration certificate i.e. 12A and 80G of trusts to whom donation paid.”
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 24.05.2024. 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, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 26.06.2024 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 requested through ITBA portal to adjourn the case to & 2452/PUN/2024 some other date but Ld. CIT, Exemption, Pune without considering the adjournment request proceeded to decide the application for registration ex-parte and in the absence of any reply from the side of the assessee trust rejected the application for registration and also cancelled the provisional registration granted to the assessee on 31.08.2021 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 without considering the adjournment request of the assessee trust the application for registration was decided ex-parte 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 & 2452/PUN/2024 assessee made compliance to the initial notices issued by the Ld. 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. ITA No.2451/PUN/2024 :
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 Act. Since we have remanded the issue of grant of registration u/s