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Facts
The assessee filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The Ld. CIT(E) rejected the application citing non-compliance with notices and insufficient documents to verify the genuineness of the trust's activities and objects, despite the assessee claiming documents were uploaded online. The assessee filed an appeal with a three-day delay, for which condonation was sought.
Held
The Tribunal condoned the three-day delay in filing the appeal. It observed that the Ld. CIT(E) rejected the registration application without making findings on the merits. Consequently, the Tribunal remanded the matter back to the Ld. CIT(E) to decide the application for registration under Section 12A afresh, after providing the assessee a due opportunity of hearing and considering all relevant documents.
Key Issues
Condonation of delay in filing appeal; Rejection of application for registration under Section 12A/12AB without merits consideration.
Sections Cited
12A, 12A(1)(ac)(iii), 12AB, 253(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 26.11.2024 passed by the Ld. Commissioner of Income Tax (Exemptions), Chandigarh [ herein referred to as ‘CIT(E)’].
Registry has pointed out that there is a delay of three days in filing of this appeal. The ld. Counsel for the 175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 2 Assessee has filed an application for condonation of delay which is reproduced as under:
175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 3
We have considered the reasoning given in the application dated 14.02.2025 and we are inclined to condone the delay.
The ld. DR did not have any objection for this condonation of delay.
Brief facts of the case as per the order of the ld. CIT(E) are that an application for registration u/s 12A(1)(ac)(iii) of the Act was filed by the applicant on 14.06.2024. On scrutiny of the above, it was found that the documents provided by the applicant are not sufficient for assessing the genuineness of the activities of the trust. It also could not be verified from the available documents whether the applicant is complying with the objects mentioned in the trust deed or not.
In order to examine and verify whether the activities of the trust or the institution are in accordance with its objects, the genuineness of its activities and compliance with such requirements of any other law for the time being in force as are material for the purpose of achieving its objects, a questionnaire was issued electronically on 175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 4 07.10.2024. Further, ld. CIT(E) has given a finding as under: - “3.1 On the stipulated date i.e. 22.10.2024 in response to the notice, the applicant has neither furnished any reply nor sought any adjournment. Another letter granting necessary opportunity was issued to the applicant on 05.11.2024 and the matter was fixed for reply by 12.11.2024. In response to the above notice, the applicant has neither furnished any reply nor sought any adjournment. Another letter granting final opportunity was issued to the applicant on 14.11.2024 and the matter was fixed for reply by 20.11.2024. In response to the above notices, again the applicant has neither furnished any reply nor sought any adjournment.
Accordingly, as there was no compliance made by the Assessee, the Ld. CIT(E) rejected the application filed by the applicant for registration u/s 12AB of the Income Tax Act, 1961 (in short 'the Act'). During proceedings before us, ld. Counsel for the Assessee submitted that although the Assessee did not comply with the various notices issued by the CIT(E) but as a matter of fact all relevant documents were already uploaded on the e-portal of the Income Tax Department. The Counsel further requested
175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 5 the Bench that the ld. CIT(E) has rejected the application for registration u/s 12AB of the Act without giving any finding on merit, therefore, the case may be remanded back to the CIT(E) for deciding the matter afresh taking into consideration all the relevant documents.
Per Contra, the Ld. DR argued that although the Assessee did not comply with the various notices issued by the CIT(E) still then he had no objection if the Bench remands back this matter to the CIT(E)
We have considered the arguments of the ld. Counsel for the Assessee as well as that of the ld. DR. We have also gone through the order passed by the ld. CIT(E). we find that the Ld. CIT(E) has not given any findings on merit, therefore, keeping in view the element of natural justice, we are of the view that the matter should be remanded back for deciding the application for registration of the Assessee u/s 12A afresh, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(E). All pleas
175-Chd-2054 Geeta Niketan Vidya Mandir Samiti, Kurukshetra 6 available under the law shall remain so available to the assessee. Ordered accordingly.
In the result, for statistical purposes, the appeal is treated as allowed.