AANYA FOUNDATION,KOTA, RAJASTHAN vs. CIT EXEMPTION, JAIPUR, RAJASTHAN

On the facts and in the circumstances of the case, the CIT Exemption erred in holding that the assessee has filed incomplete Form No. 10AB and holding non genuine activities and further erred in rejecting the application merely on the ground non compliance made by the appellant of the notices issued by the department without providing the sufficient opportunity more so when no notice was issued by physical form.

Brief facts of the case are that the assessee filed an online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 by an application dated 16.07.2023. A letter/notice No. ITBA/EXM/F/EXM43/2023-24/1057693348(1) dated 04.11.2023 was issued at the e- mailI’d provided in the application requiring the assessee to submit certain documents/explanations by 15.11.2023. The said notice remained non-compliant. A reminder letter was issued on 28.11.2023 and 11.12.2023 and same was also remain unattended. Thus, the assessee has not furnished any details/documents. Since it was a limitation matter, the application was decided based on material filed by the assessee along with its application in Form no. 10AB. The ld. CIT(E), in the absence of details noted that the form submitted in 10AB was incomplete, non-

Aggrieved from that finding so recorded in the order of the ld. CIT(E), the assessee has preferred the present appeal on the grounds as stated herein above in para 2. The ld. AR of the assessee submitted that the assessee is a public charitable trust. The notices were served on which email id is served is not clear. The managing trustee’s mail id is given in the application form and she has not received any such notices. Even there is not column where the trust mail id is called for. It seems that the notices were served on the mail id of the settler of the trust, which remained non- compliant because the settler has no role to play once the trust is established. The trust has not received any physical notice also. Thus, the principles of nature justice is violated and considering the fact that the activities of the assessee trust is charitable in nature, principles of nature justice based on fact demands that once chance be given to the assessee. The ld. AR thus relied on the decision of Jaipur benches in the case of 613/JP/2023 prayed to restore the matter back to the file of the ld. CIT(E) in the interest of justice as the order under appeal is passed ex-parte.

We have heard the rival contentions and perused material available on record. The Bench noted from the order of the ld. CIT(E) that he has rejected the application of the assessee pertaining to registration of the society u/s. 12AB of the Act on the groundthat form no 10AB is incomplete andnon-genuineness of activities coupled with the non-compliance of the notices so issued.It is also pertinent to mention that during the course of hearing, the ld. AR of the assessee prayed that he was deprived off availing adequate opportunity of being heard by the ld. CIT(E). He also submitted that in the application for registration all the details are filed. The assessee was not given proper opportunity though the managing trustee as she has not received any noticeand therefore, response could not be submitted. The Bench do not intend to go into the merit of the case or that of the dispute,but it is imperative that the assessee must be provided adequate opportunity of being heard

Before parting, we may make it clear that our decision to restore the matter back to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law.