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Facts
The assessee, Sunil Tibrewal Foundation, had obtained provisional registration under Section 12AB and applied for regular registration. The CIT(E) rejected the application, citing lack of response to queries and cancelled the provisional registration. The assessee contended that notices were not received due to incorrect email addresses being used by the CIT(E).
Held
The Tribunal held that the CIT(E) erred in rejecting the application without properly serving notices to the assessee. The use of an incorrect email address for communication led to a violation of natural justice.
Key Issues
Whether the rejection of the application for regular registration under Section 12AB and cancellation of provisional registration was justified when notices were not properly served on the assessee.
Sections Cited
12AB
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI BR BASKARAN, AM & SHRI ABY T. VARKEY, JM
O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption), Pune, dated 01.08.2023 for AY 2022-23 rejecting the application filed by the assessee for regular approval u/s 12AB of the Act.
At the outset, the Ld. AR of the assessee stated that the assessee had been granted provisional approval/registration certificate u/s 12AB of the Act on 31.12.2021, and pursuant thereto, it applied for the regular registration u/s 12AB(1)(i)(b) of the Act in Form No. 10AD dated 01.08.2023. However, the Ld. CIT(E) rejected the application, citing the reason that the assessee has not furnished any explanations to the queries made by him. Therefore, he was pleased to reject the application filed by the AO and cancelled the provisional registration granted on 31.12.2021. 2 A.Y. 2022-23 Sunil Tibrewal Foundation 3. According to the Ld. AR, the reason cited by Ld. CIT(E) was not factually correct. According to her, since assessee did not receive any notice through post / email, the assessee was in the dark about the purported show cause notice, supposed to have been issued by the Ld. CIT(E). In this context, it was brought to our notice that the Ld. CIT(E) has sent the notices on the wrong e-mail id SUNIL@GMEXWORLD.COM and not the correct e-maid id SUNIL@QMAXWORLD.COM . In the light of the aforesaid fact according to Ld. AR, the assessee never received any show cause notice as stated by Ld. CIT(E) and therefore could not obviously file the reply. Thus, she contents that there was violation of natural justice therefore impugned order is vitiated.
We have heard both the parties and perused the records. The assessee foundation was granted provisional registration on 31.02.2021 u/s 12AB of the Act and thereafter, it applied for the regular registration which was rejected and the provisional registration was also cancelled on the ground that assessee did not bother to reply to the queries of the Ld. CIT(E). However it has been brought to our notice that neither the show cause notice was never served upon the assessee by post nor on the correct email Id SUNIL@GMEXWORLD.COM. Instead it is noted that the notice from office of Ld. CIT(E) was issued on SUNIL@GMEXWORLD.COM, which is not the email id of assessee. In such scenario, we find force in the submission of the Ld. AR that in the absence of the assessee being aware of the show cause notice [issued by the Ld. CIT(E)], the assessee cannot be faulted for not responding to the quires raised by the Ld. CIT(E) which in this 3 A.Y. 2022-23 Sunil Tibrewal Foundation case was never conveyed to the assessee. Therefore, the impugned action of the Ld. CIT(E) cannot be sustained and therefore we are inclined to set it aside and restore the application back to the file of the Ld. CIT(E) with a direction to sent notices to the correct registered email ID of assessee, and after giving proper opportunity to the assessee, the Ld CIT(E) to pass order in accordance to law.