INDIAN OPTOMETRIC ASSOCIATION,CHENNAI vs. CIT (EXEMPTION), CHENNAI
What did the Tribunal hold?
The Tribunal found that the assessee provided reasons for non-compliance before them and, adhering to principles of natural justice, decided to grant one more opportunity. The matter was remitted back to the CIT(E) for reconsideration.
What were the facts?
The assessee applied for registration under Section 12AB of the Income Tax Act. The CIT(E) rejected the application due to non-furnishing of required documents and clarifications despite multiple notices.
What were the issues?
Whether the rejection of the registration application by the CIT(E) for non-compliance was justified, and if the assessee should be granted another opportunity to submit documents.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH
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 22.03.2024 seeking registration u/s.12AB of the Income tax Act, 1961 (hereinafter “the Act”).
The only ground of appeal in this appeal of the assessee is against the rejection of application filed in Form 10AB u/s. 12(1)(ac)(iii) of the Act seeking registration u/s. 12AB of the Act on the ground that ITA No.1389/Chny/2024 :- 2 -:
the assessee has not furnished the relevant documents and clarification. The assessee has filed online application on 30.09.2023 in Form 10AB u/s. 12A(1)(ac)(iii) of the Act seeking registration u/s. 12AB of the Act. The CIT(E) has issued letter on 29.12.2023 to furnish relevant documents and details and clarification on or before 09.01.2024. In response to the same, the assessee has filed its response on 09.01.2024. Subsequently, a show cause notice dated 29.02.2024 was issued informing the assessee to furnish the details as the limitation of time for disposal of application expired by 07.03.2024, but the assessee has failed to comply with the notices.
Before us, the Ld. AR has submitted that adequate opportunity was not given to the assessee and the order is opposed to the provisions of law and principles of natural justice. The Ld. AR has also submitted the reason for non compliance before the CIT(E). The Ld. AR further submitted that the CIT(E) has rejected the application for non prosecution and requested one more opportunity of hearing to file the details before the Ld. CIT(E).
On the other hand, the Ld. DR argued that the assessee has not made any submissions, despite of adequate opportunities provided to the assessee, therefore appeal may be dismissed.
ITA No.1389/Chny/2024 :- 3 -:
We have heard both the parties and gone through the order of the CIT(E). We find that the CIT(E) has rejected the application filed by the assessee in Form No.10AB u/s. 12(1)(ac)(iii) of the Act seeking registration u/s. 12AB of the Act due to non compliance of the notices. Before us, the assessee has given the reason for non compliance. We are of the opinion that keeping in view the principles of natural justice, one more opportunity be provided to assessee to submit the details. We accordingly direct the CIT(E) to re-consider the application. We also direct the assessee to appear before the CIT(E) on the date of hearing without fail and submit all the relevant documents sought for by the CIT(E). In view of the above, we remit the matter back to the file of Ld. CIT(E) to re-consider the application filed by the assessee. 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 on 31st July, 2024.
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