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Facts
The assessee's application for final registration u/s 12AB was rejected and its provisional registration cancelled by the CIT(E). The assessee appealed this order.
Held
The tribunal restored the matter to the CIT(E) for fresh adjudication after examining the assessee's evidences and granting an opportunity of hearing.
Key Issues
Whether the CIT(E) should be directed to reconsider the assessee's application for registration u/s 12AB after providing a fair opportunity of hearing and examining the submitted evidences.
Sections Cited
12AB
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order bearing DIN: ITBA/EXM/F/EXM45/2024- 25/1071559359(1) dated 25.12.2024 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of final registration u/s 12AB of Income-tax Act, 1961 has been rejected and the provisional registration u/s 12AB granted earlier has also been cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
Khajan Sita Parmakthik Trust ITA No. 58/Ind/2025
Ld. AR for assessee carried us to Para 3 & 4 of the impugned order and demonstrated that the Ld. CIT(E) has rejected assessee’s application for the reasons that (i) no details had been provided in respect of charitable activities done by assessee during last 3 financial years with supporting evidences, and (ii) the assessee has not filed bank accounts of last 3 financial years required for verification of application of income. Ld. AR next submitted that the assessee has filed an Application under Rule 29 of Income-tax (Appellate Tribunal) Rules, 1963 accompanied by a separate paper-book containing pages from 62 to 87 containing the evidences required by Ld. CIT(E). Therefore, in the interest of justice one more opportunity may be given to assessee represent its case before CIT(E).
Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before CIT(E) and do not seek unnecessary adjournments.
Considering above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of CIT(E), we remand this matter back to the file of CIT(E) for adjudication afresh after examining of assessee’s evidences. We, however, make it clear that CIT(E) may raise any other query also as considered necessary. The CIT(E) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by Page 2 of 3
Khajan Sita Parmakthik Trust CIT(E) and do not seek unnecessary adjournments failing which the CIT(E) shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 28/08/2025