NEW DINDOSHI SARBOJANIN DURGA POOJA MANDAL,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION) , MUMBAI

The brief facts of the case are that, the assesse society is formed to undertake the charitable activates.The assesse was granted provisional registration under section 12AB of the Act in Form.no10AC on 23-09-2021. Subsequently, as per the amended, provisions of section 12AB of the Act, The assessee for the purpose of permanent registration has uploaded e-application in Form. No.10AB dated 4-4-2022. The CIT(E) has issued notice dated 8.12.2023 to submit the required documents and the assesse has filed the information vide letter dated 9-01-2024.Since there was no proper compliance and clarifications, the application in form.no. 10AB was rejected by the CIT(E). Aggrieved by the CIT(E) order, the assessee has filed the appeal before the Honble Tribunal.

At the time of hearing, the Ld. AR submitted that the CIT(E) erred in rejecting the assesse’s application ignoring the submissions made along with the application in Form.10AB and also elaborate submissions filed on 9-01- 2024 in compliance to notice issued by the office of the CIT(E) and further the Ld.AR mentioned that no reasonable opportunity of hearing was granted by the CIT(E) before rejecting the application. The Ld.AR submitted that the assesse has a good case on merits with supporting evidences and requested for opportunity before the lower authorities. Per contra, the Ld.DR relied on the order of the CIT(E).

We have heard the rival submissions and perused the material available on record. The assessee has filed the application before the CIT(E) for permanent registration under section 12A of the Act, whereas the CIT(E) in course of hearing proceedings has issued e-notice on the assessee through ITBA portal for certain clarifications and additional information to verify the genuineness of the activities of the trust. Since there was no proper compliance to the notice in spite of providing sufficient opportunities to the assessee, the CIT(E) has rejected the application. Therefore we considering, the facts, submissions and the principles of natural justice shall provide with one more opportunity of hearing to the assesse to substantiate the case along with evidences and information. Accordingly, set aside the impugned order and direct the CIT(E) to denovo consider the application as per the provisions of the Act and we allow the grounds of appeal of the assessee for statistical purposes.