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Facts
The assessee's application for grant of final registration u/s 12AB of the Income-tax Act, 1961 was rejected by the CIT(E), and its provisional registration was cancelled. The assessee appealed this order.
Held
The Tribunal, considering the principle of natural justice and that no prejudice would be caused to the revenue, remanded the matter back to the CIT(E) for a fresh adjudication after examining the assessee's evidences.
Key Issues
Whether the CIT(E) correctly rejected the assessee's application for registration u/s 12AB without affording proper opportunity and considering all evidence.
Sections Cited
12AB
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order bearing DIN: ITBA/EXM/F/EXM45/2024- 25/1071559931(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
AIC- Prestige Inspire Foundation has also been cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
Ld. AR for assessee carried us to Para 3, 4 & 5 of the impugned order and demonstrated that the Ld. CIT(E) has rejected assessee’s application for some misunderstanding of the activities of assessee and also for the reason of non-supply of rent agreement and bank statements by assessee. 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 having pages from 102 to 126 containing the evidences required by Ld. CIT(E). Further, the assessee is willing to file any detail/ explanation/information as the CIT(E) needs. 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
AIC- Prestige Inspire Foundation 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 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