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Facts
The assessee filed online applications for registration under section 12AB and approval under section 80G. The CIT(E) rejected these applications primarily because the assessee failed to submit required details and documents despite multiple opportunities and notices.
Held
The Tribunal held that the assessee should be given another opportunity to submit the necessary information and documents. The appeals were allowed for statistical purposes, and the matters were restored to the CIT(E) for fresh adjudication.
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration and approval without granting sufficient opportunity to the assessee to provide required documents.
Sections Cited
12AB, 80G
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”B” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM& SHRI NARINDER KUMAR, JM
vkns'k@ORDER PER BENCH:
These two appeals have been filed by the assessee, named above. These arise out of order passed by Learned Commissioner of Income Tax (Exemption), Jaipur [hereinafter referred to as CIT(E) ] dated 06.01.2024 & 30.01.2024 respectively. Vide the first mentioned order, Learned CIT has rejected the application filed by the Assessee for registration u/s. 12AA of & 182/JPR/2024 Annadata Seva Sansthan Charitable Trust Income Tax Act. Vide the second mentioned order, application seeking approval under section 80G of the Act stands rejected. 2.1 In ITA No. 181/JPR/2024, the assessee has raised following grounds:- “
1.That on the facts and circumstances of the case and in law the ld. CIT(E) grossly erred in rejecting the application filed by the assessee appellant u/s 12AB of the Act vide impugned ex-parte order dated 06.01.2024.
2. The appellant craves leave to add, alter modify or amend any ground on or before the date of hearing.”
2.2 In the assessee has raised following grounds:- “
That on the facts and circumstances of the case and in law the ld. CIT(E) grossly erred in rejecting the application filed by the assessee appellant u/s 80G of the Act vide impugned ex-parte order dated 30.01.2024.
2. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing.”
Brief facts of the appeals are that on 11.07.2023, the assessee filed online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961. Thereupon, a letter/notice No. ITBA/EXM/F/EXM43/2023- 24/1057693245(1) dated 04.11.2023 was issued at the e- mail/address & 182/JPR/2024 Annadata Seva Sansthan Charitable Trust provided in the application requiring the assessee to submit certain documents/explanations by 15.11.2023, but, the assessee did not comply with said direction. Thereafter, a reminder letter was issued to the applicant vide this office DIN & Notice No. ITBA/EXM/F/EXM43/2023-24/1058278872(1) dated 28.11.2023 to submit complete details/information, on or before 06.12.2023. Since, the assessee is stated to have requested for adjournment, through DAK dated 05.12.2023, the case was adjourned on 20.12.2023 vide office DIN & Notice No. ITBA/EXM/F/EXM43/2023-24/1058629650(1) dated 11.12.2023. However, even on the given date, the applicant did not furnish any details/documents. Having regard to the period of limitation, Learned CIT(E) proceeded to decide the matter on the basis of material filed by the applicant along with its application in Form no. 10AB.
Learned CIT was not satisfied with the version of the assessee. Therefore, he rejected the application vide impugned order dated 06.01.2024, with the following reasons:- -Incomplete from 10AB. -In the absence of this information the genuineness of the activity carried out was not verifiable.
ITA No. 181 & 182/JPR/2024 Annadata Seva Sansthan Charitable Trust -there is no dissolution or irrevocability clause in the memorandum of association/trust deed. While the above said application seeking registration was rejected , the application for registration u/s. 80G of the Act was also rejected, due to the following reasons: - “From the above, it is evident that the provisions of clause (iii) of first proviso to sub-section (5) of sec. 80G of the Act, prescribed various time limit within which the applicant/assessee is required to file application for approval of Trust/Institution depending upon the various circumstances mentioned therein. In the present case, the applicant/assessee is provisionally registered u/s clause (iv) of first proviso to sub-section (5) of sec. 80G of the Act and therefore, the applicant/assessee was required to file application in Form No. 10AB u/s clause (iii) of first proviso to sub- section (5) of sec. 80G of the Act within the time period of at least six months prior to expiry of period of the provisional approval or within six months of commencements of its activities, whichever is earlier. From the provisions of clause (iii) of first proviso to sub-section (5) of sec. 80Gof the Act, it is evident that the time limits prescribed therein is mandatory and the Commissioner of Income Tax has no power to condone the delay in filing application in Form No. 10AB.”
Learned AR for the assessee has requested for reasonable opportunity of being heard before Learned CIT(E) so that they are able to produce all the relevant material there.
Per contra, Learned DR has relied on the orders of the ld. CIT(E) and submitted that even though various opportunities were given to the & 182/JPR/2024 Annadata Seva Sansthan Charitable Trust assessee, required details and documents were not furnished, and therefore, the prayer deserves to be rejected.
Arguments heard. File perused.
As noticed above, Learned CIT(E) has rejected the applications of the assessee u/s 12AB and under clause (iii) of first proviso to sub-section (5) of Section 80G of the Act, mainly on the ground that that the applicant failed to submit the requisite details and documents, despite notices and opportunities, and failure to justify delay of more than 6 months between commencement of activity and in filing of application for regularization of provisional registration.
Having regard to all the facts and circumstances of the case, we are of the considered view that the assessee needs to be provided another opportunity to submit the requisite informations and details so that the applications are decided after due deliberation and application of mind to the entire relevant material. Result As a result, without going into the merits of the case, both the appeals are allowed and while acceding to the only request made on behalf of the assessee for another opportunity to the assessee for ITA No. 181 & 182/JPR/2024 Annadata Seva Sansthan Charitable Trust production of entire relevant material/documents and furnishing of requisite information, before Learned CIT(E), we hereby restore the matters to the files of Learned CIT(E) with the direction to grant to the assessee an opportunity of being heard in respect of both its applications.
While parting with the order, we may make it clear that our decision to restore the matter back to the files 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. Both the appeals of the assessee i.e. and ITA No. 182/JPR/2024 are accordingly allowed for statistical purposes. Order pronounced in the open court on 17/04/2024.