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Facts
The assessee, Sri Bala Foundation, applied for registration under Section 12AB and Section 80G of the Income Tax Act. The CIT(E) rejected both applications citing non-compliance with notices requiring information and documentation like the Memorandum of Association/Trust Deed. The assessee contended that previous submissions were made, but the final notice allowed insufficient time for compliance.
Held
The Tribunal noted that the CIT(E) orders were passed without a speaking order and the assessee faced short compliance time. It set aside the rejection orders, remitting the matters to the CIT(E) for fresh consideration after granting the assessee another opportunity to be heard. The Tribunal also cautioned the assessee to cooperate promptly.
Key Issues
Whether the CIT(E)'s rejection of the assessee's applications for registration under Section 12AB and Section 80G, based on alleged non-compliance and insufficient time to respond to notices, violated the principles of natural justice.
Sections Cited
12AB, 12A(1)(ac)(iv), 80G, 80G(5), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
PER DUVVURU RL REDDY, Vice President:
The captioned two appeals are filed by the assessee directed against the rejection orders passed by the learned CIT (E)-Hyderabad (hereinafter in short “Ld CIT(E)” vide DIN & Notice No as detailed below: Sl DIN & Notice No. Order date No 1. ITBA/EXEM/F/EXM45/2024- 22/10/2024 25/1069847350(1) 2. ITBA/EXEM/F/EXM45/2023- 14/03/2024 24/1062647616(1)
(AY: 2023-24) 2. Briefly stated facts of the case are, assessee has filed an e- application in Form No.10AB seeking registration u/s 12AB of the I.T. Act, 1961 (in short “Act”). Learned CIT (E) issued notice dated 08/06/2024 to the assessee in respect of proceedings u/s 12A(1)(ac)(iv) of the Act to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response, assessee has submitted the information. Subsequently, another notice dated 01/10/2024 was issued to the assessee to submit the other information including the relevant documentary evidences. However, there is no compliance from the assessee to the notice issued by the learned CIT (E). Therefore, the Ld. CIT(E) in the absence of mandatory information, rejected the assessee’s application filed in Form-10AB for registration u/s 12AB of the Act.
Aggrieved by the rejection order passed by the Ld. CIT(E), the assessee filed an appeal before us by raising following grounds of appeal:
Before us, at the time of hearing none-appeared on behalf of the assessee. However, considering the issue involved in the appeal, we proceed to adjudicate the matter based on the material available on & 238/Viz/2025 Sri Bala Foundation, Hyderabad record. The Ld. DR relied on the order of the Ld. CIT(E) and argued in support of the same.
The only issue contested by the assessee is rejection of the Registration u/s 12AB of the Act by the learned CIT (E). On this issue, we observed that assessee’s application filed in Form No.10AB seeking registration u/s 12AB of the Act was rejected by the learned CIT (E) without any speaking order. We further observed that as per the submissions of the assessee, the assessee had responded to the earlier notices dated 08/06/2024 and 16/08/2024 issued by the Ld. CIT(E) and furnished the substantial information and the documentary evidence including the Memorandum of Association / Trust Deed. However, with regard to the notice issued on 01/10/2024, the assessee could not comply because of short time to comply with the notice. Therefore, in view of the facts and circumstances of the case, the impugned order of the learned CIT (E) is liable to be set aside, and the matter is remitted back to the file of the learned CIT (E) to decide the case afresh in accordance with law after affording one more opportunity to the assessee of being heard following the principles of natural justice. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (E) in the proceedings failing which the Ld. CIT (E) shall be at liberty to pass appropriate order in accordance with law and
In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.
(AY: 2023-24) 7. Briefly stated facts of the case are, assessee has filed an e- application in Form No.10AB seeking registration u/s 80G of the I.T. Act, 1961 (in short “Act”). Learned CIT (E) issued notice to the assessee in respect of proceedings u/s 80G(5)(iii) of the Act to produce the copy of Memorandum of Association/Trust Deed for verification and to furnish a detailed reply on the specific information called for in the said notice. In response, assessee has submitted some partial information only. Subsequently, a show cause notice dated 04/03/2024 was issued to the assessee to the assessee to submit the full information as per the notice dated 28/10/2023. However, there is no compliance from the assessee to the notice issued by the learned CIT (E). Therefore, the Ld. CIT(E) in the absence of mandatory information, the assessee’s application filed in Form-10AB for registration U/s. 80G of the Act.
Before us, at the time of hearing none-appeared on behalf of the assessee. However, considering the issue involved in the appeal, we & 238/Viz/2025 Sri Bala Foundation, Hyderabad proceed to adjudicate the matter based on the material available on record. The Ld. DR relied on the order of the Ld. CIT(E) and argued in support of the same.
The only issue contested by the assessee is rejection of the Registration u/s 80G, by the learned CIT (E). On this issue, we observed that assessee’s application filed in Form No.10AB seeking registration u/s 80G(5) of the Act was rejected by the learned CIT (E) without any speaking order. We further observed that as per the submissions of the assessee, the assessee had responded to the earlier notices issued by the Ld. CIT(E) and furnished partial information. However, with regard to the show cause notice issued on 04/03/2024, the assessee could not comply because of lack of sufficient time to comply with the notice. Therefore, in view of the facts and circumstances of the case, the impugned order of the learned CIT (E) is liable to be set aside, and the matter is remitted back to the file of the learned CIT (E) to decide the case afresh in accordance with law after affording one more opportunity to the assessee of being heard following the principles of natural justice. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (E) in the proceedings failing which the Ld. CIT (E) shall be at liberty to pass appropriate order in accordance with law and & 238/Viz/2025 Sri Bala Foundation, Hyderabad on merits based on the materials on the record. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.
Ex-consequenti, both the appeals filed by the assessee are allowed for statistical purposes.