SRI VISWESWARA SWAMY TEMPLE,MACHILIPATNAM vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD
Facts
The assessee, Sri Visweswara Swamy Temple, filed an application for registration under section 12AB of the Income Tax Act, 1961. The CIT(E) rejected this application due to the assessee's repeated failure to comply with notices requesting information for verification. The assessee also filed the appeal with a 25-day delay, which was subsequently condoned by the Tribunal.
Held
The Tribunal, while acknowledging the CIT(E)'s justification in rejecting the application due to non-compliance, decided to grant the assessee one final opportunity in the interest of natural justice. The impugned order of the CIT(E) was set aside, and the matter was remanded back to the CIT(E) for fresh consideration, with directions for the assessee to cooperate and furnish all required documents.
Key Issues
Rejection of application for registration under section 12AB due to non-compliance with information requests; whether natural justice demands a final opportunity for compliance.
Sections Cited
12AB, 12AB(1)(a)
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Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM
Before: SHRI RAVISH SOOD, HONBLE & SHRI S BALAKRISHNAN, HONBLE
आदेश /O R D E R
PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER: 1. This appeal is filed by the assessee against rejection order of Learned Commissioner of Income Tax (Exemption), Hyderabad [hereinafter in short “Ld.CIT(E)”] vide DIN & Notice No. ITBA/EXM/F/EXM/45/2025- 26/1077191926(1) dated 18.06.2025 seeking registration under section 12AB of the Income Tax Act, 1961 (in short ‘Act’).
I.T.A.No.544/VIZ/2025 Sri Visweswara Swamy Temple 2. At the outset, it is noticed from the appeal record that there is a delay of 25 days in filing the appeal before the Tribunal. Explaining the reasons for belated filing of the appeal, the Ld. AR drew our attention to the affidavit filed by the assessee along with a petition seeking for condonation of delay and read out the contents of the petition which is as under:
“1. The petitioner is the Appellant in the appeal mentioned above, The Order in dispute i.e., the Rejection Order in Form. 10AD of the Commissioner of Income tax, (Exemptions) was passed and also served on your petitioner-appellant on 18.6.2025, 2. The petitioner-appellant is thus obliged to file an appeal against the said order before the Hon'ble Tribunal by 17.8.2025, But, the Appeal Memorandum is being presented in the office of the Hon'ble Tribunal on 11.9.2025, Le, with a delay of 25 days (estimated date of receipt in ITAT office: 11.9.2025 - by the time the Appeal Memorandum reaches the Hon'ble Tribunal's Office, the delay would be 25 days), 3. The temple premises were under major renovation and reconstruction work, which required the full attention of the Executive Officer and the office staff, The administrative office of the temple was also temporarily shifted and disrupted during this period, resulting in delay In collating documents and seeking professional advice for filing the present appeal. 4. It is prayed that the Hon'ble Tribunal be pleased to condone the delay and pray that the Appeal be admitted and taken on record, as otherwise great hardship and Insufferable Injustice will be caused to the petitioner herein. The Inconvenience caused in this regard to the Honourable Tribunal is sincerely regretted., The petitioner also hereby undertakes to ensure proper representation before the Honourable Tribunal in the above appeal on its admission and an opportunity of hearing is granted thereafter.”
On perusal of the contents of the affidavit filed by the assessee as well as the submission of the Ld. AR, we find that the assessee is prevented by a reasonable and sufficient cause in filing the appeal beyond the prescribed time limit with a delay of 25 days. Therefore, we hereby condone the delay of 25 days
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I.T.A.No.544/VIZ/2025 Sri Visweswara Swamy Temple in filing the appeal before the Tribunal and proceed to adjudicate the appeal on merits in the following paragraphs.
Briefly stated facts of the case are that the assessee has filed an e-application on 23.10.2024 in Form No.10AB seeking registration under section 12AB of the Act. The Ld.CIT(E) issued letter dated 27.03.2025 to the assessee in respect of proceedings under section 12AB of the Act for verification and to furnish a detailed reply on the specific information called for in the said notice. In response, assessee failed to response to the letter. Subsequently, Ld.CIT(E) issued other letters on 21.05.2025 and 07.06.2025 to submit the information as per the notices issued. In response, assessee failed to comply to the notices. As there is no compliance to the notices, the Ld.CIT(E) rejected the application filed in Form-10AB for registration under section 12AB of the Act.
Aggrieved by the rejection order, assessee filed an appeal before us and raised following grounds in its appeal: -.
“1. In the facts and circumstances of case, learned CIT (Exemptions)) ought to have considered the facts of the case before dismissal of the application ex parte. 2. The appellant couldn't respond to the Notices (with 60 questions) issued by the learned CIT (E), as they were sent to the personal email of the Executive Officer (it is fairly admitted that the same was given in the Application by the appellant itself, pending creation of official mail to the Temple). 3. Learned CIT (E) ought to have considered the fact that the appellant is a few-hundred-year-old Temple run by the State Govt Endowments Department and there would be nothing non-charitable in the objectives of the Trust and no noncompliance with other laws, which only disentitle
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I.T.A.No.544/VIZ/2025 Sri Visweswara Swamy Temple rejection of registration. (The Appellant prays for remit back of the application for fresh consideration). 4. As per the audited financial statements attached to the Application for Trust Registration in Form.10AB by the appellant, the net surplus of income over expenditure was less than Rs.1 lakh in each year. The appellant applied for Sec.12AB registration to comply with State Govt directives to all the Govt.-run Temples and its grant doesn't in any way impact incometax collection, but militates against the non-observance of State Govt instructions by the appellant. The appellant prays for a liberal view and direct the learned CIT(E) for reconsideration of the application.” 5. The appellant craves leave to add or amend any Ground of Appeal.”
The only issue contested by the assessee is with respect to rejection of the Registration under section 12AB of the Act by the Ld.CIT(E).
At the outset, Ld. Authorized Representative [hereinafter in short “Ld.AR”] submitted that the order of the Ld. CIT(E) is exparte and pleaded that one more final opportunity may be given to the assessee to substantiate and submit the documentary evidences before the Ld. CIT(E).
On the other hand, Ld. Departmental Representative [hereinafter in short “Ld. DR”] relied on the order of the Ld.CIT(E) and submitted that assessee has not utilized the opportunity provided by the Ld.CIT(E). Therefore, the order passed by Ld. CIT(E) is exparte order and he pleaded to confirm the order of the Ld.CIT(E).
We have heard both the sides and perused the material available on record. On a perusal of the rejection order, it is observed that even though Ld.CIT(E) has provided opportunity on several occasions, assessee could not appear nor
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I.T.A.No.544/VIZ/2025 Sri Visweswara Swamy Temple complied to the notices issued. Ld.CIT(E) in the absence of necessary documents to verify the genuineness of the activities of the Trust proceeded to reject the application for registration under section 12AB of the Act. Non-compliance to the statutory notice prevented the Ld.CIT(E) from verification of necessary documents rendered under provisions of section 12AB(1)(a) of the Act. Considering the above facts, the Ld.CIT(E) was justified in rejecting the registration under section 12AB of the Act. However, in the interest of natural justice, we find it appropriate to grant another one more opportunity to the assessee to submit the relevant documents including the evidences as detailed in the notices. Accordingly, we grant one more opportunity to the assessee and thereby set-aside the impugned order and restore the matter back to the file of Ld.CIT(E) with a direction to provide one more opportunity to the assessee to furnish required details. Assessee is also directed to fully cooperate and furnish necessary documents / information as required by the Ld.CIT(E).
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 05th December, 2025.
Sd/- Sd/- (रिीश सूद) (एसबालाकृष्णन) (RAVISH SOOD) (S. BALAKRISHNAN) न्याधयक सदस्य/JUDICIAL MEMBER लेखासदस्य/ACCOUNTANT MEMBER Dated: 05.12.2025 Giridhar, Sr.PS
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I.T.A.No.544/VIZ/2025 Sri Visweswara Swamy Temple
आदेशकी प्रतत तलतप अग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/ The Assessee : Sri Visweswara Swamy Temple Near Bypass Road Machavaram Machilipatnam – 521001 Andhra Pradesh 2. राजस्व/ The Revenue : Commissioner of Income Tax (Exemptions) 2nd Floor, Aayakar Bhawan Basheer Bagh, Hyderabad Telangana - 500004 3. The Principal Commissioner of Income Tax 4. तिभागीयप्रतततितर्, आयकरअपीलीयअतर्करण, तिशाखापटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गार्ाफ़ाईल / Guard file आदेशािुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
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