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Facts
The assessee applied for registration under Section 12A of the Income Tax Act. The CIT(E) rejected the application because the assessee failed to respond to a show-cause notice issued regarding the application.
Held
The Tribunal found that the CIT(E)'s order was ex parte and denied the assessee a proper opportunity to file objections. In the interest of justice and fair play, the Tribunal set aside the CIT(E)'s order and remanded the matter back for a fresh examination after providing a reasonable opportunity of being heard to the assessee.
Key Issues
Whether the rejection of an application for registration under Section 12A by the CIT(E) without granting a proper opportunity of being heard to the assessee is valid.
Sections Cited
12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Sonjoy Sarma
Pension Kendra, Capital Towers, Shoranur Road, Patturaikkal. PAN : AABAC7568B. (Appellant) (Respondent) Appellant by : None Respondent by : Smt. Leena Lal, Snr AR Date of Hearing : 02.06.2025 Date of Pronouncement : 12.06.2025 O R D E R Per Sonjoy Sarma: This appeal filed by the assessee is directed against the order of the CIT(Exemption, Kochi [CIT(E)] dated 26.12.2024 rejecting an application for registration u/s 12A which was filed by the assessee in Form 10AB of the Act by observing as under:
“Based on the above subject, the applicant was requested show cause as to why its application in Form 10B filed for registration u/s 12A should not be rejected, on or before 12.11.2024 vide SCN dated 04.12.2024. However, no reply/objection has been filed by the applicant so far.
Based on the above discussion, Form 10AB filed for registration u/s 12A of the Act is rejected.”
Central Government Pensioners Association Kerala 2. At the time of hearing, no one has appeared on behalf of the assessee despite serving notice. We proceed to adjudicate the case after hearing the ld. DR and perusing the materials on record.
We have heard the ld. DR and perused the material available on record. We find that the instant appeal filed by the assessee only on the issue of rejection of application for registration u/s 12A of the Act. We notice that while passing the impugned order, the ld. CIT(E) issued a show-cause notice to the assessee however no reply/objection has been filed by the assessee, therefore, the appeal of the assessee was dismissed by the ld. CIT(E) without granting registration u/s 12A of the Act. Since the order of the ld. CIT(E) is ex parte and the assessee did not get any opportunity to file any objection, therefore, in the interests of justice and fair play, we set aside the order of the ld. CIT(E) and remand the matter back to the file of the ld. CIT(E) to re-examine the issue afresh after giving reasonable opportunity of being heard to the assessee.
In terms of the above, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 12.06.2025.