JANJATI CHETNA SAMITI FULCHURTOLA,GONDIA vs. CIT EXEMPTION , PUNE
Facts
The assessee, Janjati Chetna Samiti Fulchurtola, filed applications for registration under sections 12AA/12AB and approval under section 80G(5) of the Income Tax Act. Both applications were rejected by the CIT(E) because the assessee failed to respond to a second notice issued with only seven days' time, despite having responded to the first notice. The assessee sought another opportunity to present its case on merits.
Held
The tribunal found merit in the assessee's request for another opportunity, considering the short notice period for the second compliance. It restored both matters to the file of the CIT(E) to reconsider the applications afresh, directing the CIT(E) to provide a fair and reasonable opportunity to the assessee before passing any orders. Both appeals were allowed for statistical purposes.
Key Issues
Whether the rejection of applications for Trust registration under sections 12AA/12AB and fund approval under 80G(5) due to non-compliance with a short-notice request was justified, and if the assessee deserves another opportunity to present its case.
Sections Cited
Section 12AA, Section 12AB, Section 80G(5), Section 254(1)
AI-generated summary — verify with the full judgment below
PER PAWAN SINGH, JUDICIAL MEMBER:
These two appeals by the assessee are directed against the separate
orders ld. Commissioner of Income Tax (Exemption) [for short “CIT(E)”]. In
ITA No. 389/Nag/2025, the assessee has challenged the rejection of
application for registration of Trust under section 12AA/12AB of the Income
Tax Act, 1961 (the Act). In ITA No. 388/Nag/2025 the assessee has
challenged rejection of application for approval of fund under section
80G(5) of the Act. Both the appeals are interconnected, therefore with the
consent of both the parties, both the appeals were heard together.
Rival submissions of both the parties have been heard and record perused.
The ld. Authorised Representative (AR) of the assessee submits that
ITA Nos. 388 & 389/Nag/2025 Janjati Chetna Samiti Fulchurtola
assessee is a charitable Trust /Institution, filed application for registration
of Trust under section 12AA/12AB on 26.12.2024. First notice of hearing
was responded by assessee, however the assessee could not respond to
second notice dated 04.04.2025, wherein only seven days’ time was
allowed, resultantly the application of assessee was rejected. Once
application under section 12AA/12AB was rejected another application for
registration of fund under section 80G(5) was also rejected. The ld. A.R.
submits that assessee is interested in pursuing the matter on merit and has
good case on merits, if one more opportunity is allowed to the assessee.
He undertakes on behalf of the assessee to be more vigilant in making
timely compliance.
On the other hand, ld. CIT–DR for revenue submits that assessee has not
responded in response to notice issued by CIT(E), therefore the assessee is
not eligible for any further relief. Both the appeals may be dismissed.
We have considered the rival submissions of both the parties and have
gone through the orders of lower authority carefully. We find merit in the
submission of ld. A.R. of the assessee that in response to first show–cause
notice, the assessee vide reply dated 12.02.2024, sought time to file
details. The assessee was again served second show cause notice dated
04.04.2025 to make compliance within in seven days. However, no
compliance was made. Resultantly the application of assessee for
registration under section 12AA/12AB was rejected. Considering the facts
and circumstances of the case in our view the assessee deserves one more
opportunity to explain its object and activities for seeking registration
ITA Nos. 388 & 389/Nag/2025 Janjati Chetna Samiti Fulchurtola
under section 12AB.s Therefore, matter is restored back to the file of
CIT(E) to re–consider the application afresh. Needless to direct that before
passing the order, the ld. CIT(E) shall allow fair and reasonable opportunity
to the assessee.
In the result, ITA No. 189/Nag/2025 is allowed for statistical purposes.
ITA No. 388/Nag/2025
We find that this appeal relates to registration of Trust under section
80G(5) for approval. Considering the fact that we have already restored the
application of assessee for registration under section 12AB, therefore this
application is also restored to the file of ld. CIT(E) to be considered after
passing order in application under section 12AA/12AB of the Act.
In result, both the appeals of assessee are allowed for statistical purposes.
Order was pronounced in the open Court on 26 /02/2026.
Sd/- Sd/- KHETTRA MOHAN ROY PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER
Nagpur, Dated: 26/02/2026 SK, Sr. PS Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. By Order
Senior Private Secretary ITAT, Nagpur
