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Facts
The appellant, a charitable society registered under Section 12A of the Income Tax Act since 2003, sought renewal of registration by filing Form 10AB. The CIT(E) rejected this application, citing the assessee's alleged non-compliance with notices for furnishing details, despite the assessee's claim of having submitted replies and documents and a prior technical glitch causing a mistaken attempt at Section 10(23C) registration.
Held
The Tribunal observed that the CIT(E)'s order did not acknowledge the replies and documentary evidence submitted by the assessee. Consequently, the Tribunal decided that the assessee should be granted another opportunity to be heard, restoring the matter to the CIT(E) for fresh consideration of the Form 10AB application and registration under law.
Key Issues
Whether the rejection of the Form 10AB application for renewal of registration was justified given the assessee's submissions and alleged non-consideration by CIT(E).
Sections Cited
Income Tax Act, 1961, Section 10AB, Section 12A, Section 10(23C), Section 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI
Assessee by Ms. Rano Jain, Adv. & Shri Venktesh Choursia, Adv. Respondent by Shri Sujit Kumar, CIT-DR Date of Hearing 08/08/2024 Date of Pronouncement 28/08/2024 O R D E R
PER VIMAL KUMAR, JM:
The appeal of the Assessee arises out of order of the Learned Commissioner of Income Tax (Exemptions), Chandigarh, [hereinafter referred to as ‘Ld. CIT(E)’] dated 15/02/2024, in form of 10AB of the Income Tax Act, 1961 (hereinafter the ‘the Act’) vide application to CIT (Exemption), Chandigarh 2023-24/12AA/11406 was rejected.
Brief facts of the case are that appellant/assessee is a Charitable Society registered under Societies Registration Act, 1982 on 16/02/1967. The assessee society was registered u/s 12A of the Income Tax Act through orders dated 30/04/2003 vide order No.DIT(E)02-03/S-3377/02/162. There is no change in the aims and objects of the Assessee Society. The assessee/appellant was required to file for renewal application was filed. The assessee was filed renewal application in absence of any registration on account of some technical glitch as while filing for registration inadvertently the section 10 (23C) button got clicked. The assessee society had the registration under section 12A for the last many years and reply dated 29/11/2023 was submitted along with copies of documents. The appellant/assessee filed Form 10AB on 7th August, 2023 vide e- filing acknowledgement no.168407470070823. Assessee was issued questionnaire on 12/10/2023 with the request to furnish details of documents. Letters dated 2/11/2023, 19/12/2023 and 05/02/2024 were issued. The appellant/assessee failed to comply the notices. The application for registration in Form 10AB was rejected.
Being aggrieved appellant/assessee preferred appeal with following grounds:- “
1. On the facts and circumstances of the case, the order passed by the Ld. CIT(Exemption) is bad both in the eye of law and on facts.
2. On the facts and circumstances of the fact Ld. CIT(Exemption) has erred both on facts and in law in rejecting the application for registration under section 12A(1)(ac)(iii) of the Act.
3. On the facts and circumstances of the fact that Ld. CIT(Exemption) has erred both on facts and in law in rejecting the application holding that the assessee did not participate in the proceedings despite that fact that the assessee had filed various replies with documentary evidences before the Ld. CIT(Exemption).
4. That Ld. CIT(Exemption) has erred both on facts and in law in rejecting the application without giving any finding on the merits of the case.
That the appellant craves leave to add, amend or alter any of the grounds of appeal
.”
4. Learned Counsel for appellant/assessee submitted that the Ld. CIT(E) erred in rejecting the application holding that the appellant/assessee did not participate in the proceedings in spite of filing various replies with documentary evidence.
5. Learned Authorized Representative for department of revenue’s submitted that appellant assessee failed to comply with several notices.
6. From examination of record in light of aforesaid rival submissions it is crystal clear that the appellant/assessee was issued questionnaire dated 12/10/2023 with a request to furnish certain details/documents/clarifications in support of its claim of registration u/s 12A(1)(ac)(iii). The case was fixed for compliance on 27/10/2023. The appellant did not file any reply in response to the above notice. The appellant/assessee was issued letters dated 02/11/2023, 19/12/2023 and 05/02/2024. The appellant/assessee preferred letters dated 29/11/2023, 28/12/2023 along with documents. The Ld. CIT(E) failed to refer to any of letters dated 29/11/2023 and 28/12/2023 along with documents in the impugned order.
On a perusal of the Ld. CIT(E) order, we find that even though the Ld.CIT(E) provided opportunity on several occasions assessee could not appear or utilized the opportunities. Considering the totality of facts and submissions of the Ld. AR, we are of the opinion that assessee should be given one more opportunity of being heard. Hence, the matter is restored to the file of Ld. CIT(E) for consideration of Form 10AB and consider granting of registration as per law.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28th August, 2024.