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Facts
The assessee filed an application for registration under Section 80G of the Income Tax Act, 1961. The CIT(Exemption) rejected the application due to non-prosecution after issuing multiple notices and opportunities to the assessee.
Held
The Tribunal noted that the CIT(Exemption) had provided several opportunities to the assessee, but the assessee failed to comply. However, in the interest of justice, the Tribunal set aside the order and remitted the issue back to the CIT(Exemption) for fresh adjudication.
Key Issues
Whether the CIT(Exemption) was justified in rejecting the application for registration under Section 80G due to non-prosecution.
Sections Cited
80G, 80G(5)(ii), 12AB
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Income Tax Appellate Tribunal, KOLKATA-CUTTACK ‘e-COURT’, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Rajesh Kumar
Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Exemption), Hyderabad dated 11th December, 2024 passed for Assessment Year 2024-25 on the application of the assessee for registration filed in (A.Y. 2024-2025) Dhrupad Music Foundation Form 10AB under section 80G of the Income Tax Act, 1961. In other words, the ld. CIT(Exemption) has rejected the application of the assessee for grant of registration under section 80G on account of non-prosecution of the application. .
Brief facts of the case are that the assessee filed an e- application in Form No. 10AB seeking registration under section 80G of the Income Tax Act, 1961. Notices were issued in respect of proceedings under section 80G(5)(ii) to the address mentioned in the Form 10AB 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, the assessee submitted partial information only. Thereafter notice dated 21.11.2024 was issued to the assessee as a final opportunity to submit the other information also along with the reply to the above notice including relevant documentary evidences i.e. copy of latest three months GST returns, list of donors in respect of 80G claim, furnishing the documentary evidences with regard to expenditure incurred for the objectives as per Trust Deed/Memorandum of Association., but there was no compliance to the notices.
The ld. CIT(Exemption) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed the written submission nor represented the case before the ld. CIT(Exemption). The ld. CIT(Exemption) passed the order dated 11.12.2024 dismissing the appeal of the assessee.
(A.Y. 2024-2025) Dhrupad Music Foundation 4. Dissatisfied with the decision of the ld. CIT(Exemption), the assessee preferred an appeal before the Tribunal.
At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Exemption) for deciding it afresh.
The ld. D.R., on the other hand, submitted that the assessee should be more vigilant about its obligation towards prosecuting income tax proceedings. He argued to uphold the order passed by the ld. CIT(Exemption).
We have duly considered the rival contentions and gone through the record carefully. In the impugned order, the application of the assessee for grant of registration under section 12AB has been rejected for want of prosecution. In the interest of justice, we deem it appropriate to set aside the order and remit the issue to the ld. CIT(Exemption) for fresh adjudication.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 25/08/2025.