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Facts
Bharosa Foundation, having provisional registration under Section 80G, applied for final registration. This application was rejected ex parte by the CIT(E) because notices were sent to an inactive email address, thus denying the assessee an adequate opportunity of hearing. The CIT(E) also raised concerns regarding the delay in filing the application.
Held
The Tribunal held that the assessee deserved an opportunity to substantiate its claim for 80G registration. Consequently, the appeal was allowed for statistical purposes, and the matter was restored to the CIT(E) for a fresh order on merits, specifically instructing to consider the issue of delay in filing the application.
Key Issues
Whether the ex parte rejection of the final 80G registration application was valid given the lack of proper notice and opportunity of hearing, and whether the delay in filing the application should be condoned.
Sections Cited
Section 80G
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Income Tax Appellate Tribunal, DELHI BENCH “A” : NEW DELHI
Before: SHRI G.S. PANNU & SHRI ANUBHAV SHARMA
O R D E R PER ANUBHAV SHARMA, JM: Heard and perused the record.
At the time of hearing learned AR has pointed out that the Society was incorporated on 7.4.2018 and was granted provisional registration u/s 80G from 10.3.2022 to A.Y. 2024-25 vide order dated 10.3.2022. Thereafter the Society had applied for final registration vide Form 10AB dated 17.2.2023. Learned AR submitted that no physical notice was served on the appellate society nor there was any intimation in any other form. Learned AR submitted that in September 2023 when tax audit started, it was informed by the tax auditors that the registration 4.2.2023. Learned AR has pointed out that three notices, which were issued by the learned CIT(E), Chandigarh, were on a e- mail address, which was no more in use and active for communication. Accordingly, it is submitted that assessee did not have adequate opportunity of hearing. It was further submitted that apart from the above the learned CIT(E) has also made certain observations with regard to delay in making the application. It is submitted that learned CIT(E) failed to take into consideration the settled law that delay is allowable and can be condoned.
After taking into consideration all the aforesaid facts and circumstances, we are of the considered view that assessee deserves an opportunity to substantiate its claim of fulfilling the conditions of Sections 80G of the Act and entitlement of exemption by the relevant evidences to the satisfaction of the learned CIT(E). Accordingly, the appeal is allowed for statistical purposes and the issue is restored on merits to the file of learned CIT(E), Chandigarh to pass a fresh order in accordance with law, especially with regard to alleged delay in filing application. Order pronounced in open court on 09.02.2024.