IDAM BRAAHMAM SOCIETY ,HYDERABAD vs. CIT(EXEMPTIONS) , HYDERABAD

Assessee applied for registration under section 12AB of the Income Tax Act, 1961 (for short “the Act”), and the learned CIT(E) while recording that issuance of notices and granting opportunity the assessee did not produce the copy of the Memorandum of Association/trust deed for verification and to furnish any reply, rejected the application submitted in form No. 10AB seeking registration under section 12AB of the Act.

Assessee submits that at the relevant point of time the secretary of the society was not available because he resigned and left the premises and therefore, the assessee could not receive the notice resulting in the rejection of the application. Learned AR submits that subsequently the assessee came to know of the rejection of the application and then after obtaining the necessary papers from the resigned secretary, the assessee approached the counsel and filed this appeal. Learned AR submitted that by allowing the application rejected for default the assessee does not stand to gain and, therefore, an opportunity may be granted to the assessee to pursue their application before the learned CIT(E) diligently.

Learned DR submitted that the facts stated by the learned AR are not in the knowledge of the Department and it is for the assessee to prove such facts before seeking an opportunity at this stage.

We have gone through the record in the light of the submissions made on either side. The plea taken by the assessee that the notice issued to the assessee was during the period when the secretary of the assessee was not available due to his resignation, was not in the knowledge of the assessee and that is the reason why the assessee could not submit the relevant documents before the learned CIT(E) resulting gain the rejection of the application, does not appear to be suspicious because the assessee does not stand to gain by such conduct. Further the highest that would happen by allowing an opportunity to the assessee is that a cause could be decided by the learned CIT(E) on merits.

With this view of the matter, we set aside the impugned order and restored the application to the file of the learned CIT(E) for considering the same on merits after affording an opportunity of being heralded to the assessee. It is made clear to the assessee that no further opportunity