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Facts
The assessee's application for registration under section 12AA of the Income Tax Act, 1961, was rejected by the CIT(Exemption) due to the assessee's failure to respond to requests for information. The assessee contended that non-receipt of notices was due to a wrong email address.
Held
The Tribunal observed that the impugned order was silent on the mode and actual service of notices. Concluding that the ends of justice would be served by allowing the assessee an opportunity to contest on merits, the Tribunal restored the issue to the CIT(Exemption) for a fresh order after providing the assessee a proper hearing.
Key Issues
Whether the application for registration under section 12AA was rightly rejected in light of alleged non-receipt of notices by the assessee.
Sections Cited
12AA, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘G’: NEW DELHI
Before: SHRI G.S. PANNU & SHRI ANUBHAV SHARMA
This appeal has been preferred by the Assessee against the order dated 08.08.2023 in Application No. CIT(Exemption), Delhi/2023-24/12AA/10356 passed by Commissioner of Income Tax (Exemption), New Delhi, dismissing application for Registration u/s 12AA of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).
ITA No.- 1763/Del/2024 Sanskriti Raksha Samiti Trust Heard and perused the records. 2.
The Assessee has filed an application for early hearing of the appeal arising out of challenge of order dated 08.08.2023 passed by CIT(Exemption) Delhi, wherein the application of the assessee in Form 10AB for grant of registration u/s 12A(1)(ac)(iii) was rejected. On hearing, the Ld. AR, it comes ups that the impugned order was passed on the basis that, when relevant information was called by CIT(E), assessee had failed to respond. The claim of the assessee is that due to wrong email address, assessee did not receive notices.
After taking into consideration the impugned order, it comes up that the same is silent with regard to the mode of service to the applicant and if notices were actually served. The Ld. DR has tried to defend the impugned order but we are satisfied that the end of justice will be served by giving the assessee an opportunity to contest of merits.
In the light of aforesaid, the appeal of the assessee is allowed for statistical purposes, and the issue on merit is restored to the files of the Ld. CIT(E), Delhi, to pass an order fresh, after giving an opportunity of hearing to the assessee.
Order pronounced in the Open Court on 17 .05.2024