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Facts
The assessee's application for registration under Section 12AB of the Income Tax Act was rejected by the CIT(E) for failure to provide timely responses to notices, attributing this to the personal distress of their earlier representative due to the demise of his son. The assessee appealed this order.
Held
The Tribunal condoned the delay in filing the appeal and acknowledged the genuine personal tragedy faced by the assessee's representative, which hampered timely compliance. The Tribunal held that the assessee should have been granted a final reasonable opportunity to comply.
Key Issues
Whether the rejection of registration application without affording a reasonable opportunity, due to a genuine personal hardship of the representative, is justified?
Sections Cited
12A(1)(ac)(iii), 12AB
AI-generated summary — verify with the full judgment below
Order PER LALIET KUMAR, J.M: This appeal is preferred by the assessee against the order dated 28.11.2024 passed by the Ld. CIT (Exemptions), Chandigarh whereby the application of the assessee seeking registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 was rejected.
At the outset, the Registry has pointed out a delay of 03 days in filing the appeals. After considering the condonation application and finding sufficient cause demonstrated therein, we condone the delay and admit the appeal for adjudication.
The assessee had filed an application in Form No. 10AB on 26.06.2024 seeking registration under section 12AB. During the proceedings before the CIT(E), multiple notices were issued on 10.10.2024, 07.11.2024, and 19.11.2024 seeking detailed clarifications and documentary evidences to verify the genuineness of the activities and compliance with the objects of the trust.