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Facts
The assessee, Hare Rama Hare Krishna Fighter Club, a charitable organization registered u/s 12A, applied for fresh registration u/s 12AB as mandated by the Finance Act 2020. Due to a counsel's error, the application was mistakenly filed under section 12A(1)(ac)(iii) instead of 12A(1)(ac)(i), leading the CIT(E) to cancel it, citing a lack of provisional registration without considering the merits. There was also a 147-day delay in filing the appeal, for which condonation was sought and granted by the Tribunal.
Held
The Tribunal found that the CIT(E) rejected the application for registration in a casual manner without proper consideration of the material on record or providing an opportunity of being heard. Consequently, the Tribunal set aside the CIT(E)'s order and remanded the matter back for fresh adjudication on merits, directing the CIT(E) to provide the assessee with a proper opportunity to present its case.
Key Issues
Whether the CIT(E) was justified in rejecting the application for registration u/s 12A(1)(ac)(iii) without considering merits; Condonation of delay in filing the appeal.
Sections Cited
Section 12A, Section 12AB, Section 12A(1)(ac)(iii), Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
आदेश/Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the appellant - Assessee against the order dated 8.8.2024 passed by the Ld. Commissioner of Income Tax, Exemptions [‘(CIT(E)’]
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Grounds of appeal, as raised by the Assessee are reproduced as under:
1. 1. 1. 1. That, the learned CIT(E), Chandigarh has erred in law and on facts in rejecting the application for registration u/s 12A(1)(ac) (III) filed by assessee.
2. That the learned CIT(E), Chandigarh has erred in law and on facts in rejecting the application for registration u/s 124(1)(ac) (ill) filed by the assessee without providing opportunity of being heard.
That the appellant craves leave to add, alter, amend or to substitute the above grounds of appeal either before or at the time of hearing of case.
3. The Registry has pointed out that there is a delay of 147 days in filing of the appeal before the Tribunal. The Counsel of the Assessee has filed an application along with Affidavit on behalf of the Assessee, making prayer for condonation of delay. The affidavit of the Assessee is as under: - 460-Chd-2025 3 460-Chd-2025 4 460-Chd-2025 5
We have considered the reasons given in the Application / Affidavit and keeping in view the facts and circumstances mentioned therein, we are inclined to condone the delay.
The ld. DR did not have any objection for condonation of delay. Accordingly, the delay in filing of the appeal is hereby condoned and we proceed to decide the appeal on merit.
At the very outset, it has been submitted before the Bench by the ld. Counsel for the Assessee that the Ld. Commissioner of Income Tax Exemptions, Chandigarh has rejected the application for registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (in short 'the Act') filed by the Assessee electronically on 28.5.2024 in form 10AB finding that the Assessee did not have provisional registration.
Per contra, the ld. DR relied on the orders of the authorities below.
We have considered the findings given by the Ld. CIT Exemptions and the arguments made by the ld. Counsel for the Assessee as well as the ld. DR.
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We find that in the present case the Ld. Commissioner of Income Tax Exemptions, Chandigarh has rejected the application of the applicant for registration u/s 12A(1)(ac)(iii) in a very casual manner simply stating that the application does not have provision registration and in the absence of that, he cancelled the applicant’s application being non-maintainable without considering the material available on record and deciding the issue on merit.
We find that the Ld. CIT Exemptions has not passed the order on merits on the basis of material available on record. Therefore, keeping in view the element of natural justice, we are inclined to remand it back to the file of the CIT(E) to re-adjudicate the case on merit on the basis of material available on record. In view of this, the impugned order of the CIT(E) is set aside and the matter is restored to the file of the CIT(E) for decision afresh. Needless to say, that the ld. CIT(E) will give proper opportunity to the Assessee to present its case and to furnish necessary evidences and details. The applicant is also directed to present its case before the Ld. CIT(E) as and when called for and will not contribute in unnecessary delay in the hearing of the appeal.
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In the result, the appeal of the Assessee stands allowed for statistical purposes. Order Pronounced on 11.2.2026. Sd/- Sd/-