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Facts
The assessee's application for registration under Section 12AB of the Income Tax Act in Form 10AB was rejected and its provisional registration cancelled by the CIT(E). The CIT(E) based its rejection on the non-production of documents without granting a proper opportunity of hearing. The assessee filed the appeal with a delay of 127 days, explaining that an accountant's negligence caused the delay.
Held
The tribunal condoned the 127-day delay, finding the reasons for the delay genuine. Recognizing that the CIT(E) had not provided an opportunity of hearing or time to file details, the tribunal decided to remand the matter back to the CIT(E). The CIT(E) is instructed to give the appellant a proper opportunity of hearing and allow the filing of necessary details before deciding on the registration application.
Key Issues
Whether the rejection of the Section 12AB registration application without providing an adequate opportunity of hearing was justified, and whether the delay in filing the appeal should be condoned.
Sections Cited
12AB, 12A, 80G
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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: MS. SUCHITRA R. KAMBLE & MAKARAND V.MAHADEOKARShri Urjit Shah, CA Shri Rignesh Das, CIT-DR
आदेश आदेश/O R D E R आदेश आदेश
PER MAKARAND V.MAHADEOKAR, AM:
This appeal has been preferred by the assessee against the order passed by the Commissioner of Income-tax (Exemptions), Ahmedabad [hereinafter referred to as “CIT(Exemption)”], dated 22.10.2024 whereby the learned CIT(Exemption) rejected the assessee’s application filed in Form No. 10AB under section 12AB(1)(ac)(iii) of the Income-Tax Act, 1961 [hereinafter referred to as “the Act”] for grant of registration under section 12AB and also cancelled the provisional registration earlier granted to the assessee under the said provision.
2. The ground raised by the assessee in appeal reads as under:
1. Learned CIT (Exemption) erred in law and facts by making the order by rejecting the application filed in form 10AB for registration u/s 12A(1)(AC)(iii) of the IT act for not producing documents required by the authority.
Due to non compliance by the side of Accountant, documents are pending to produce against the notice issued by the authority and not submitted appeal on time against rejection order, hence we will require permission for condonation of delay in filing appeal.
3. Appellant craves to add, alter or delete any grounds either before or in the course of hearing of the appeal.
The applicant/appellant filed application for registration of the trust in Form 10AB under Sub-clause (iii) of clause (ac) of sub-section 12A of Income Tax Act, 1961. The said application was rejected and provisional registration was also cancelled by the CIT(E) vide order dated 22.10.2024.
Being aggrieved by the said order, the applicant/appellant filed the present appeal belatedly by 127 days for the reason set out in application for condonation of delay and the affidavit of the trustee. The applicant/appellant stated that on receipt of the order dated 22.10.2024 passed by the CIT(E), the applicant not aware that the same has to be challenged that is why asked some friends who were tax practitioners, but the accountant instead of going to CA, made fresh application for Section 12A of Act. Thereafter I started follow up about status of approval under Section 12A and 80G of Income Tax Act, 1961, however that accountant was not responding and stopped picking up the phone calls. Later on upon constant follow up with the accountant cum clerk, he intimated us about the facts as mentioned in this affidavit and confessed that he had not visited any CA or Advocate for filing an appeal against the Section 12A and 80G rejection order and also apologize for his wrong attempts. Thus, there was delay which appears to be genuine hence, condoned.
As regards to the merits of the case, the CIT(E) has not given opportunity of hearing to the applicant /Appellant as well as not given time to file the details, therefore, it will be appropriate to remand back this