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Facts
The assessee filed an application for registration under section 12AB of the Income-tax Act, 1961. The CIT(E) issued notices for furnishing documents, which were not complied with by the assessee. Subsequently, the CIT(E) rejected the application.
Held
The Tribunal held that the assessee was not provided with sufficient opportunity to furnish the required documents, considering the principles of natural justice. Therefore, the order of the CIT(E) was set aside.
Key Issues
Whether the rejection of the registration application by the CIT(E) was justified due to non-compliance with notices, or if the assessee should be granted another opportunity.
Sections Cited
12AB, 12(1)(ac)(iii), 12A(1)(ac)(v)
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI MAHAVIR SINGH & SHRI JAGADISH
Seemais Trust, The Commissioner of Income 2/248-A, Vs. Tax (Exemption), Shirdi Saibaba Dharmashala, Chennai. Siddhagiri, Yedapalli, Coonor, The Nilgiris – 643 104. [PAN: AARTS 7246M] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ: की ओर से/ Appellant by : Ms. B. Agnus Jennifer, Advocate <=थ: की ओर से /Respondent by : Shri R. Clement Ramesh Kumar, CIT सुनवाई की तारीख/Date of Hearing : 21.10.2024 घोषणा की तारीख /Date of Pronouncement : 21.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax (Exemption), Chennai [hereinafter “CIT(E)”] dated 19.06.2024 rejecting the application filed in Form No.10AB u/s. 12(1)(ac)(iii) seeking registration u/s. 12AB of the Income-tax Act, 1961 (hereinafter “the Act”).
:- 2 -: 2. The assessee has filed online application on 12.12.2023 in Form No.10AB u/s. 12A(1)(ac)(v) of the Act seeking registration u/s. 12AB of the Act. The Ld. CIT(E) has issued notice on 15.05.2024 to furnish the relevant documents and details on or before 24.05.2024 which remained un-complied. The Ld. CIT(E) has issued further show cause notice on 28.05.2024 giving final opportunity to furnish the details by 03.06.2024, which again was not complied. The Ld. CIT(E) therefore, rejected the application filed by the assessee seeking registration u/s. 12AB of the Act.
The Ld. Authorized Representative (A.R) of the assessee before us has submitted that sufficient opportunity was not provided as the final hearing notice was issued on 28.05.2024 to provide details on 03.06.2024 which provided only 4 working days and by the time the assessee gathered the information , the Ld. CIT(E) passed order ex- parte rejecting the application. The Ld. AR has argued that the order was passed ex-parte and sufficient time was not provided , one more opportunity may be provided to file the relevant documents.
The Ld. Departmental Representative (DR), on the other hand, supported the order passed by the Ld. CIT(E) rejecting the application as the assessee has not complied with the notices issued.
:- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. The assessee has been issued final show cause notice on 28.05.2024 and only four working days has been given. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(E). Accordingly, we set aside the order passed by the Ld. CIT(E) and remit the matter back to the file of the Ld. CIT(E) to consider the application of the registration afresh in accordance with law, after giving reasonable opportunity to the assessee. We also direct the Assessee to appear before the Ld. CIT(E) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 21st October, 2024.