SHRI PARSWACHANDRA GACHHA JAIN TRUST PALITANA,BHAVNAGAR vs. THE CIT(EXEMPTION), AHMEDABAD

This appeal by the assessee is directed against the order dated 18.09.2023 passed by the Commissioner of Income Tax (Exemptions), Ahmedabad [hereinafter referred to as "CIT(E)"], rejecting the assessee’s application for registration under section 12AB of the Income Tax Act, 1961[hereinafter referred to as "the Act"] and also cancelling the provisional registration granted earlier under section 12A(1)(ac)(vi) of the Act.

The learned Departmental Representative (DR) raised no serious objection to the condonation of delay.

Considering the submissions and the circumstances set out in the affidavit, we are satisfied that the delay in filing the appeal was due to bonafide and unavoidable circumstances. Accordingly, in the interest of justice, the delay of 313 days is hereby condoned.

Aggrieved by the order of CIT(E), the assessee is in appeal before us raising following grounds of appeal: “(1) That on facts, and in law, the learned CIT (Exemptions) Ahmedabad has grievously erred in not granting sufficient and reasonable opportunity to the appellant and in deciding the application u/s 12AB ex-parte. (2) That on facts, and in law, the learned CIT (Exemptions), Ahmedabad has grievously erred in rejecting the application for registration u/s. 12AB of the Act by ex-parte order. (4) The appellant craves leave to add, alter, amend any ground of appeal.”

During the hearing, the learned Authorised Representative (AR) submitted that the assessee had never received the notices issued by the CIT(Exemptions), nor was aware of the rejection order until April 2024. It was explained that the non-filing of responses was due to lack of communication and technical glitches on the portal. The AR also pointed out that a grievance was raised on the Income Tax portal on 14.06.2024, which remains unresolved. It was contended that the assessee was prevented by reasonable cause and that the matter be remanded for adjudication on merits.

The DR raised no objection is restoring the matter back to the file of CIT(E).

We have heard the rival submissions and perused the material available on record. Admittedly, the impugned order was passed ex-parte, and the assessee has asserted on oath that neither the order nor the show cause notices were received. The grievance submitted on the IT portal substantiates the assessee’s contention regarding technical issues in filing the required form or documents. Given these facts, we are of the view that the principles of natural justice have not been complied with in the present case.

Accordingly, the impugned order passed under section 12AB of the Act is set aside. The matter is restored to the file of the CIT(E) for fresh adjudication after providing adequate opportunity to the assessee.

In the result, the appeal is accordingly allowed for statistical purposes.