ANIMAL LOVERS CHARITABLE TRUST,JAMNAGAR vs. THE CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

During the course of argument, the Ld. AR submitted that the assessee is not having knowledge of online proceedings of the case. That the assessee could not comply with the notices. Therefore, the Ld. AR prayer for one more opportunity may kindly be given to the assessee and adjudicate on merit.

We have heard the submission made by the Ld. AR and the absence of the contrary fact material available on record. We noted that assessee has explained sufficient cause and therefore delay needs to be condoned. Considering the above facts and circumstances of the case, as narrated above, we are of the opinion that, in the interest of justice, the delay deserves to be condoned and to decide the appeal of assessee on merits in accordance with law. Accordingly, we condone the delay and admit the appeal of the assessee to adjudicate on merit.

Brief facts of the case that the appellant had filed an application for Provisional Registration u/s 12A of the Income Tax Act, 1961 as on 26- 12-2022, against which the appellant was granted Provisional Registration u/s 12A of the Income Tax Act, 1961 as on 02-01-2023. Later, the appellant had also filed application for the Final Registration u/s 12AB of the Income Tax Act, 1961 as on 06-02-2023, in respect of which notices dated 11.07.2023 and 04.08.2023 were Issued. However, as the appellant is not technically sound, the notices issued by the department via Income Tax Portal and e-mail, remained unattended and therefore no response was submitted against the same. Subsequently, the Rejection Order under Form No. 10AD under Section 12AB of the Act was passed on 21.08.2023, stating that the application for Final Registration is rejected and the Provisional Registration was also cancelled on the ground that the appellant had not filed any reply to the notice issued by the Department.

At the outset Ld. Counsel for the assessee submitted that during proceedings before Ld.CIT(E) the assessee could not submit certain details and documents because these details and documents were not available when the proceedings before Ld. CIT(E) was going-on. Therefore, assessee could not submit the required details and documents for registration. However, now the assessee has in its possession entire documents and details which are to be submitted before Ld.CIT(E). Therefore, the matter may be remitted back to the file of Ld.CIT(E) for de novo adjudication.

On the other hand, Ld. CIT-DR for the Revenue submitted that assessee was negligent in submitting the details and documents before Ld.CIT(E) despite giving lot of opportunities to the assessee. Alternatively Ld. CIT-DR also argued that if the matter is to be remitted back to the file of Ld.CIT(E) then in those circumstances, assessee should be instructed to file the amended objects of the trust and after taking into account, the amended objects of the trust. The Ld. CIT(E) may take the decision to grant registration in accordance with law.

We have heard both the parties and perused the materials available on record. We note that Ld.CIT(E) has denied the registration u/s 12AB of the Act mainly on the reason that assessee has failed to submit the relevant details and documents for verification of Ld.CIT(E). The Ld.CIT(E) has given ample opportunities to the assessee to submit the details and documents. However, the assessee-trust did not take care to Animal Lovers Charitable Trust submit the required details and document like activities of trust, objects of the trust and other details as required by the Ld.CIT(E). Since assessee-trust has failed to submit these details and documents before Ld.CIT(E), therefore, Ld.CIT(E) dismissed the application of assessee in Form-10AB for registration u/s 12AB of the Act stating that assessee- trust has failed to file documentary evidence to satisfy about the genuineness of the trust activities and to verify these activities whether they are in consonance with its objects.

The Ld. Counsel of the assessee submitted before us that the required details and documents were not available with the assessee readily when the proceedings were going on before Ld.CIT(E). However, now these details and documents are available with the assessee. The Ld. Counsel of the assessee contended that one more opportunity should be given to assessee to submit these details and documents before Ld.CIT(E). Therefore, the matter may be remitted back to the file of Ld.CIT(E) for fresh adjudication. We find that assessee could not submit the required details and documents before Ld.CIT(E) because these details and documents, which were required by the Ld.CIT(E), were not available with the assessee-trust at the time when the proceedings were going on. Now, before us Ld. Counsel stated that assessee has entire details and documents with it and which are to be submitted before Ld.CIT(E). Considering these facts we are of the view that on more opportunity should be given to assessee to plead its case before Ld.CIT(E) Therefore, we set aside the order passed by Ld.CIT(E) and remit the issue back to the file of Ld.CIT(E) for fresh adjudication in accordance with law. Needless to direct that before passing order afresh, the Ld.CIT(E) shall allow reasonable opportunity to the assessee, we also direct the assessee to be more vigilant and to make timely compliance

In the result, this appeal of the assessee is allowed for statistical purposes.