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Facts
The assessee, a charitable society, applied for registration under Section 12AB of the Income Tax Act. The CIT (Exemption) rejected the application because the assessee failed to provide complete details of donations received during the last three financial years despite multiple notices.
Held
The Tribunal observed that the assessee did not comply with the notices issued by the CIT (Exemption) and thus the genuineness of funds could not be verified. The Tribunal, however, conceded that a last opportunity should be given to the assessee.
Key Issues
Whether the CIT (Exemption) was justified in rejecting the application for registration under Section 12AB without providing a reasonable opportunity of being heard, and if the case should be remanded for fresh adjudication.
Sections Cited
253, 1961, 12AB, 12AB(I)(b)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश / O R D E R
Per Paresh M Joshi, J.M.:
This is an appeal filed by the Assessee Under Section 253 of the Income Tax Act, 1961 (hereinafter referred to as the Act for sake of convenience and ease) before this Tribunal. The assessee is aggrieved by order bearing Number ITBA/EXM/F/ EXM45/2024-25/1066659815(1) dated 12.07.2024 passed by CIT, Exemption, Bhopal Under Section 12AB(I)(b)(ii) of the Act
Sadguru Kabir Samajsevi Sanstha Samiti which is hereinafter referred to as the “Impugned order”.
Delay of 25 days is pointed out by the Registry. No representative of the assessee was present when the case was called for.
However the case was taken up for hearing with the help of Ld. DR and grounds of appeal raised by the assessee. The Ld. DR has fair enough not to object for condonation of delay. Delay condoned. Appeal taken for hearing.
FACTUAL MATRIX 2.1 That the assessee is a charitable society applied in Form 11AB for registration u/s 12AB under the provisions of Income Tax Act, 1961. Assessee has been served with notices dated 17.05.2024 and 21.06.2024 vide which various documents were called from the assessee to process and verify the eligibility of the assessee for registration u/s 12AB of the Act. No response to these notices received from the assessee. Thereafter a final notice dated 01.07.2024 was served to the assessee and the assessee duly replied to it during the proceedings. It was observed by the Department during the proceedings that the assessee did not submit the complete details of donation received during last three
Sadguru Kabir Samajsevi Sanstha Samiti financial year accordingly the same was requisitioned from the assessee vide notices dated 17.05.2024 and 21.06.2024. In the absence of any reply the genuiness of the funds of the assessee could not be verified. In view of the above reasons and compulsory provisions of the Act the registration u/s 12AB was rejected.
2.2 That the assessee being aggrieved by the impugned order has filed an appeal before this Tribunal and has raised following grounds of appeal against the impugned order in Form 36 which are as under:-
“1. The application for permanent registration u/s 12AB is denied by Hon CIT Exemptions by mentioning that genuineness of donation received could not be verified and order for rejection u/s 12AB has been issued without giving reasonable opportunity of being heard which is not justified.”
Record of Hearing 3.1 The hearing in the matter took place before this Tribunal on 10.03.2025 nobody on behalf f the assessee appeared before us.
However the case was heard with the help of Ld. DR and on the basis of grounds of appeal.
Sadguru Kabir Samajsevi Sanstha Samiti 3.2 Per contra Ld. DR fairly conceded that a last opportunity be given to the assessee to submit requisite details to the Department and the matter may be remanded to Ld. CIT Exemption for adjudication afresh.
Observations,findings & conclusions.
4.1 We now examine the legality, validity and the proprietary of the “Impugned Order” basis records of the case.
4.2 We have carefully perused records of the case and have heard contention of Ld.DR.
4.3 We observe that the application of the assessee for registration U/s 12AB of the Act was rejected by Ld. CIT Exemption. The assessee prayed in the grounds of appeal for giving reasonable opportunity of being heard for presenting the case. We observe that prior to the passing of the “Impugned Assessment Order” the Ld. CIT Exemption had followed due process as required under rules. The assessee despite of opportunities have remained non complaint for reasons best known to him. The Ld. CIT Exemption finally rejected the application for registration u/s 12AB.
Sadguru Kabir Samajsevi Sanstha Samiti 4.4 We basis records of the case before us are of the considered view that the matter may be remanded to Ld. CIT Exemption for considering the application afresh and reasonable opportunity of being heard may be given to the assessee for presenting the requisite records. The assessee should comply to the notices of Ld. CIT Exemption promptly and should not seek unnecessary adjournment until and unless warranted.
Order 5.1 In the premises set out herein above the impugned order is set aside as and by way of Remand on Denovo basis.
5.2 In result appeal of assessee is allowed for statistical purpose.
Order pronounced in open court on 11.03.2025.