THE FEDERATION OF DAVANAGERE CHAMBERS OF COMMERCE AND INDUSTRY,DAVANGERE vs. CIT, DAVANGERE

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ITA 80/BANG/2015Status: DisposedITAT Bangalore04 April 20175 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. It held that the assessee's non-compliance was due to a change in its incumbent and not deliberate. Therefore, the matter was remanded for a fresh examination.

What were the facts?

The assessee, a company registered under Section 25 of the Companies Act, applied for registration under Section 12AA of the Income-tax Act. The CIT denied registration as the assessee failed to appear before the CIT(Exemptions) despite multiple notices, leading to the presumption of disinterest.

What were the issues?

Whether the CIT was justified in denying registration under Section 12AA due to the assessee's non-appearance, and if the delay and non-compliance could be condoned.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, BENGALURU

Before: SHRI INTURI RAMA RAO & SHRI LALIET KUMAR

For Appellant: Shri B.Chandrashekar, Advocate
For Respondent: Shri O.P.Yadav, CIT(DR)
Hearing: 02/03/2017Pronounced: 04/04/2017

Date of hearing : 02/03/2017 Date of pronouncement : 04/04/2017 O R D E R

Per INTURI RAMA RAO, AM :

1.

This is an appeal filed by the assessee directed against the order of the CIT, Davangere, dated 30/04/2012 denying registration u/s 12AA of the Income-tax Act,1961 [‘the Act’ for short].

2.

At the outset there is a delay in filing the present appeal by 939 days. The assessee filed petition for condonation of delay stating that based on wrong advice the appeal was not filed. The application for condonation of delay reads as under: Page 3 of 5 3. After hearing both sides, we are of the considered opinion that it is a fit case for condonation of delay as no assessee should suffer because of mistake of counsel. The learned CIT(DR) has no serious objection for condonation of delay.

4.

The assessee-trust raised the following grounds of appeal:

5.

Brief facts of the case are that the assessee is a company registered under the provisions of section 25 of the Companies Act. The company was formed with the object of promoting and helping the business community. Application under section 12AA was filed on 10.10/2011 in Form 10A along with prescribed enclosures for the purpose of grant of registration u/s 12AA of the Act. On receipt of application, the CIT(Exemptions) issued several letters calling for certain information/clarification. However, the assessee-company sought time twice and subsequently could not cause appearance before the CIT(Exemptions). Therefore the CIT(Exemptions) presumed that Page 4 of 5 the assessee was not interested in pursuing application and dismissed the application vide impugned order.

6.

Before us, learned counsel for assessee vehemently contended that there was no deliberate intention in not complying with notice of CIT(Exemptions). It is only because of change in incumbent of the assessee that compliance could not be made. Therefore it is prayed that in the interest of justice, the matter may be restored to the file of the CIT(Exemption), Davangere for de novo examination of the application. The learned CIT(DR) has no serious objection for remitting the issue to the file of the CIT(Exemptions), Davangere. We accordingly order that the issue is remanded back to the CIT(Exemption) for de novo examination of the issue after affording due opportunity to the assessee.

7.

In the result, the appeal filed by the assessee is treated is allowed for statistical purposes.

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