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Facts
The assessee's applications for registration under Section 12A and Section 80G were rejected by the CIT(E) vide ex-parte orders. The assessee claims they were unaware due to administrative issues, lack of staff, and failure of previous consultants to update them.
Held
The Tribunal condoned the delay in filing the appeals, set aside the ex-parte orders of the CIT(E), and restored the matters for fresh decision after giving the assessee an opportunity of hearing.
Key Issues
Whether the ex-parte orders passed by the CIT(E) rejecting the registration applications were justified, and if the assessee should be granted an opportunity to present their case.
Sections Cited
12A, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA
Per Sanjay Garg, Judicial Member
The captioned appeals have been preferred by the assessee against separate orders passed by the Ld.Commissioner of Income- Tax (Exemption), Ahmedabad [hereinafter referred to as “ld.CIT(E)]. is against the order of the ld.CIT(E) dated 24.8.2023 rejecting the application of the assessee for final/regular registration under section 12A of the Income Tax Act, 1961 (for short “the Act”) whereas the ITAT No.858/Ahd/2025 is against the order of the ld.CIT(E) dated 28.8.2023 rejecting the application of the assessee for final/regular registration under section 80G of the Act. and 858/Ahd/2025 2 3. At the outset, the ld.counsel for the assessee, inviting our attention to the impugned orders of the ld.CIT(E) has submitted that both the impugned orders have been passed ex parte of the assessee. He submitted that the assessee was not aware about the rejection of applications for registration as it has not received any intimation from the CPC. He further submitted that assessee-trust is a non-profit organization engaged in welfare activities and depended upon voluntary contribution. That due to administrative constrains, financial limitations and lack of professional staff dedicated to the tax matters, it could not regularly monitor email communications and track e-proceedings through e-portal of the Department, due to which the show cause notice issued to the assessee remained non-complied which resulted into passing of the impugned ex parte order, rejecting the applications of the assessee for regular registration. Coupled with these facts, the consultants engaged by the assessee earlier, also did not appraise or update the pending income tax matters. It was only when the assessee-trust engaged a new consultant, it came to know about the pendency of the appeal and appraised about the necessity of taking immediate follow up action.
The ld.counsel for the assessee submitted that the assessee may be given an opportunity to present its case, since the assessee has a valid and strong case, as the assessee has already been granted provisional approval/registration, and there was no reason for non- granting of regular/final approval/registration.
The ld.DR, on the other hand, relied on the order of the ld.CIT(E).
Considering the above submissions of the assessee, in our view, interests of justice will be well served, if the assessee is given an opportunity to present its case before the ld.CIT(E). Accordingly, we and 858/Ahd/2025 3 condone the impugned delay in filing the appeal before the Tribunal, and set aside the orders of the ld.CIT(E) and restore to the file of the ld.CIT(E) for decision afresh on the applications of the assessee, after providing due opportunity of hearing to the assessee. The assessee is also directed cooperate with the proceedings and furnish necessary documents/evidences as may be required during the proceedings.
In the result, both the appeals of the assessee stand allowed for statistical. Order pronounced on 16th June, 2025.