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Facts
The assessee applied for registration under section 12AB of the Income Tax Act, which was rejected by the CIT(E) due to lack of evidence and non-compliance. The appeal was filed after a delay of 375 days, with the assessee claiming non-service of notices and the order. The tribunal condoned the delay.
Held
The tribunal noted that the assessee did not file any submissions or evidence before the CIT(E) despite multiple opportunities. However, considering the principles of natural justice and the circumstances, the tribunal restored the issue to the file of the CIT(E) to grant one final opportunity to the assessee to substantiate its claim.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration due to non-compliance and lack of evidence, and whether the appeal filed after a significant delay should be admitted.
Sections Cited
12AB, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “F”, DELHI
Before: SH.S. RIFAUR RAHMAN & SH. SUDHIR KUMAR
Date of hearing: 12/01/2026 Date of Pronouncement: 12/01/2026 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Exemption), Chandigarh [hereinafter referred to as “CIT(E)”] vide order dated 17.11.2022.
This appeal is time barred by 375 days. As, per the assessee no copy of the order was served on the assessee, so the appeal could not be filed within time. No benefit could have accrued to assessee by not filing the appeal within time therefore, we condoned the delay in filing the appeal and admit the appeal for adjudication.
The assessee has raised the following grounds in appeal:
1. No service of notices and no copy of the impugned order has been served and the appellant was unknown to the proceedings.
2. The impugned order has been passed against the appellant is in contradiction with principle of Natural justice.
3. No opportunity to be heard has been given to the appellant 4.The brief facts of the case are that assessee submits the application for registration u/s 12AB of the Act on 03-05-2022. A questionnaire was issued to the assesse on 06-09-2022 requesting the appellant to furnish the documents. The assessee did not file any submission before the Ld. CIT(E ). The Ld. CIT(E) rejected the applications of the applicant for registration as well as for provisional registration obtain by the applicant. The Ld. CIT(E) rejecting the registration application observed as under :- “5. In view of the above, discussion the present application of the assessee filed in Form 10 AB u/s 12A(1) (ac)(iii) of the Act is disposed of as being deficient in factual evidence in the absence of the requisite submissions and appearances of the assessee. This is despite the granting of at least three opportunities as above. It is pertinent to mention here that it is mandated by the provisions of section 12A(1) (ac) (iii) of the Act that where the trust or institution has been provisionally registered u/s 12AB it has to make an application for registration u/s 12AB within six months of commencement of activities. In the absence of any submission from the applicant it is not possible to ascertain the objects and activities carried out by the applicant. Accordingly the application filed by the applicant for registration u/s 12AB of the Act is hereby rejected, which rejection and consequent lack of registration will apply from this A.Y.2022-23 on wards and also supersede any registration granted u/s 12AB or 12AA of the Act by ant authority at any earlier time.”
The Ld. DR has submitted that the Ld. AR has failed to provide the relevant documents before the Ld. CIT(E), the application was rightly rejected.
We have heard the Ld. DR and perused the material available on record. None is present for assessee. The assessee did not file any evidence to establish the activities of the trust, by which, the Ld. CIT(E) rejected the registration application. Since in the instant case the Ld. CIT(E) has dismissed the appeal for non-compliance therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate, its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. CIT(E) and co-operate in the proceedings. The grounds raised
by the assessee are accordingly allowed for statistical purposes.
7. In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 12.01.2026.