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Facts
The appellant, ST Johns Marthoma Syrian Church, filed an appeal against the CIT(Exemption)'s rejection of its application for registration under Section 12AB. The rejection was based on the Trust's failure to respond to hearing notices due to administrative challenges, including a transition in key personnel and disruptions in communication channels, leading to a temporary lapse in awareness of hearing notices.
Held
The Tribunal condoned the delay in filing the appeal, acknowledging the Trust's good work and the reasons provided. The Tribunal noted the appellant's concession that notices were not responded to, attributing it to incorrect email communication and lack of knowledge of the Income Tax Portal. The case was remitted back to the CIT(E) for adjudication on merits.
Key Issues
Whether the rejection of the application for registration under Section 12AB was justified due to non-response to hearing notices, and if the circumstances warrant a remand for fresh adjudication.
Sections Cited
12AB, Income Tax Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Mumbai “F” Bench, Mumbai.
Per Omkareshwar Chidara (AM) :-
In this above captioned appeal, the appellant filed an appeal for A.Y. 2022-23 with the following grounds of appeal :- “On the facts and circumstances of the case and in law the Ld. CIT (Exemption) erred in.
1. Rejecting the application which was filed u/s 12AB before the Ld. CIT(Exemption) on the grounds the Trust has not responded to the hearing notices in the course of proceedings. This was happened due to unexpected administrative challenges i.e a transition in key personnel and subsequent disruptions in communication channels resulted in a temporary lapse in awareness regarding the receipt of notice of hearings.
2. The appellant prays before the Hon'ble Tribunal that kindly remand back to CIT(Exemptions) as this is a genuine case and we have all relevant documents and evidence pertaining to the case.
2 ST Johns Marthoma Syrian Church
3. The appellant hereby craves the leave to add to, alter or amplify the aforesaid grounds of appeal, as and when the need arises/at the time of hearing.”
During the course of hearing, the appellant filed an affidavit for condonation of delay in filing this appeal and the main reason for filing the appeal with a delay of 60 days, is change in office bearers of Trust and have not properly intimated the new set up. From the paper book filed by Ld. AR of assessee, it is seen that the Trust is doing very good work for poor by rendering education and providing free food to them. In view of the reasons filed by Ld. AR, the delay is condoned.
Coming to adjudication of main ground of appeal that the Trust has not responded to the hearing notices in the course of proceedings before the Ld. CIT(E), the Ld. AR has fairly conceded that they have not responded to the notices issued by the Ld. CIT(E) and their application for registration was rejected by the Income Tax Department. During the course of hearing, the Ld. AR has pleaded that the main reason for not attending before the Ld. CIT(E) is that the notices were sent by the Income Tax Department on the e- mail of chalukunnil@rediffmail.com, who is a past committee member. The e- mail address given by Trust at the time of application to Department was bobbyverghese6@gmail.com. Hence, the Trust office bearers could not respond to the notice of the Ld. CIT(E). Further, it was submitted that the management of Trust lack required knowledge to be able to navigate through the Income Tax Portal to view the notices. So, it was pleaded that one opportunity may be given to present their case before the Ld. CIT(E) to get final registration u/s. 12AB of the Income Tax Act.
The Ld. DR mentioned that it is the mistake of Trust for not responding the notices issued by Income Tax Department.
Case is heard. After going through the paper book filed by the Ld. AR of assessee-Trust, which contains some information/photos relating to the good
3 ST Johns Marthoma Syrian Church work being done by Trust and also that provisional registration was already given by the Department, it is decided to remit the matter back to the Ld. CIT(E) for adjudication of Registration u/s. 12AB, on merits.
The case is remitted to the Ld. CIT(E) for adjudication on merits and assessee is directed to cooperate with Department and file all relevant material before the Ld. CIT(E).
The appeal is allowed for statistical purposes.
Order pronounced in the open court on 31st July, 2024.