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Facts
The assessee's application for registration under section 80G(5) was rejected by the CIT(E) due to incomplete submission of documents, despite the assessee being granted provisional registration under section 12A. The assessee faced a delay of 226 days in filing the appeal, which was condoned.
Held
The Tribunal held that the assessee was denied a reasonable opportunity to present evidence before the CIT(E). Therefore, the matter is remitted back to the CIT(E) to grant the assessee another chance to be heard regarding the registration under section 80G(5).
Key Issues
Whether the CIT(E) rightly rejected the 80G registration application without providing adequate opportunity of hearing and whether the delay in filing the appeal should be condoned.
Sections Cited
80G, 12A, 11AA (2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI
Before: SHRI B.R. BASKARAN & SHRI ANIKESH BANERJEE
Instant appeal of the assessee was filed against the order of the Learned Commissioner of Income-tax (Exemptions), Mumbai [for brevity, ‘Ld.CIT (E)’] passed under section 80G of the Income-tax Act, 1961 (in short, ‘the Act’) for Assessment Year 2023-24date of order27.06.2023.
“1. On the facts and circumstances prevailing in the case and as per the provisions of the law, Hon’ble Commissioner of Income Tax Exemptions rejected the application filed as per section 80G without granting adequate and proper opportunity of being heard. The Appellant be grant just and proper relief in this respect.
The order of rejection passed is in violation of principles of natural justice as the appellant was granted only four days of time which was not sufficient and reasonable to comply with the notice dated 29/06/2023 sent.
The appellant craves leave to add, alter or amend any of the existing grounds of appeal
on or before the date of hearing.”
3. There is a delay in filing of appeal by 226 days. The assessee filed an affidavit with condonation of delay and explained the delay. The reason of delay is stated to be that the assessee was waiting for the registration of the trust under section 12A of the Act, without that the assessee cannot proceed with application for 80G registration. The Ld.DR has not made any objection and has accepted the “sufficient cause” filed by the assessee. Accordingly, the delay for condonation of 226 days is condoned and we proceed to dispose of the appeal.
Perused the material on records and heard the learned representatives for both the parties.
We find that the assessee applied for registration under section 80G(5) of the Act. During the hearing before Ld.CIT(E), the assessee made the part compliance. But the assessee was asked to produce complete documents under rule 11AA (2) of the Income Tax Rules, 1962. But for incomplete submission, the registration was duly rejected. The assessee filed an application before the bench The Path of Joy Foundation for restoring the matter for further hearing. The assessee already submitted the provisional registration U/s 12A of the Act and finally the regular registration was granted. In paper book, the assessee submitted the requisite documents before the Bench. Accordingly, the reasonable opportunity for the assessee is denied and the assessee should get another opportunity for submitting its evidence before the ld. CIT(E). So, the matter is remitted to the file of the ld.CIT(E) for allowing the assessee one more chance of hearing related to registration under section 80G(5) of the Act. On the other hand, the assessee is directed to be diligent and co-operative with the ld.CIT(E) in set aside proceedings.
In the result, the appeal of the assessee bearing