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Facts
The assessee, a Charitable Trust, applied for registration under section 12AB of the Income Tax Act. Despite multiple notices and opportunities, the assessee failed to provide complete information and documentation to the CIT(Exemption). Consequently, the CIT(Exemption) rejected the application and dismissed the assessee's appeals.
Held
The Tribunal observed that the impugned orders were ex-parte and the assessee's application was rejected for want of prosecution. In the interest of justice, the Tribunal decided to set aside the orders and remit the issue back to the CIT(Exemption) for fresh adjudication.
Key Issues
Whether the rejection of the assessee's application for registration under section 12AB by the CIT(Exemption) due to non-compliance was justified. Whether the appeals should be set aside and remitted for fresh adjudication.
Sections Cited
12AB, 12A(1)(ac)(ii), 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA-CUTTACK ‘e-COURT’, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Rakesh Mishra
(A.Y. 2023-2024) Prajna Foundation orders of ld. Commissioner of Income Tax (Exemption), Hyderabad dated 7th December, 2024 and 11th December, 2024 respectively passed for Assessment Year 2023-24 on the application of the assessee filed in Form No. 10AB for registration under section 12AB of the Income Tax Act. In other words, the ld. CIT(Exemption) has rejected the application of the assessee for grant of registration under section 12AB on account of non-prosecution of the application. .
Brief facts of the case are that the assessee is a Charitable Trust and engaged in various charitable activities. Notices were issued in respect of proceedings under section 12A(1)(ac)(ii) of the Act to the address of the assessee mentioned in the Form No. 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 notices. In response to the notices, the assessee-Trust submitted partial information only. Thereafter notice dated 05.11.2024 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.
(A.Y. 2023-2024) Prajna Foundation 3. 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 ex-parte orders dated 07.12.2024 and 11.12.2024 dismissing the appeals of the assessee.
Dissatisfied with the decision of the ld. CIT(Exemption), the assessee preferred appeals before the Tribunal.
At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned orders 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 orders passed by the ld. CIT(Exemption).
We have duly considered the rival contentions and gone through the record carefully. The impugned orders are ex-parte order wherein application of the assessee for grant of registration under section 12AB have been rejected for want of prosecution. In the interest of justice, we deem it appropriate to set aside the orders and remit the issue to the ld. CIT(Exemption) for fresh adjudication.
(A.Y. 2023-2024) Prajna Foundation 8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 26/05/2025.