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Facts
The assessee, Hari Anant Vikas Samiti, applied for registration under Section 12AB of the Income Tax Act, 1961. The CIT (Exemption) dismissed the applications due to the assessee's failure to furnish relevant documents and non-compliance with notices, leading to the assessee's appeal.
Held
The tribunal found that the CIT (Exemption) provided only four days for compliance with a show cause notice, which was insufficient. Therefore, the tribunal set aside the impugned orders, remanding the matter back to the CIT (Exemption) to decide afresh after providing adequate opportunity of hearing to the assessee.
Key Issues
The key legal issue was whether the CIT (Exemption) violated principles of natural justice by not providing sufficient opportunity of hearing to the assessee before dismissing the registration applications.
Sections Cited
Section 12AB
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH
ORDER PER SUNIL KUMAR SINGH, JUDICIAL MEMBER These appeals have been preferred by the assessee against the order dated 17.10.2025 passed on assessee’s application No. CIT(Exemption), Bhopal/2025-26/12AA/11059 and application No. CIT(Exemption), Bhopal/2025-26/12AA/11060 respectively, wherein Ld. CIT(E) has dismissed assessee’s applications for the registration u/s 12AB of the Income Tax Act, 1961 for want of relevant documents and non-compliance.
The facts and issues involved in both these appeals are similar, hence for the sake of brevity and convenience, both these appeals are being decided by this common order.
Briefly stating, appellant applied before Ld. CIT(E) in form 10AB for registration of appellant trust under the new provisions of the Act. Ld. CIT(E) issued notices, requesting assessee to furnish certain documents and required Hari Anant Vikas Samiti CIT (Exemption)Bhopal details to process the application and verify the objects and activities of the assessee. Ld. CIT(E) was not satisfied with the response of assessee received through portal and further issued show cause notices 10.10.2025 requesting assessee to provide documentary proof and location of activities i.e. ledger accounts, letter for the received grant in AID, evidences with regard to the incentive to farmers DBT and bank details along with bank statement etc. Assessee neither respondent to the request of the concerned revenue authority nor sought any adjournment for submitting the required documentary evidence. Ld. CIT(E), thus rejected assessee’s claim for want of submissions.
Appellant is in the appeal before this tribunal on the sole ground that Ld. CIT(E) has passed the impugned order in violation of the principles of natural justice without affording proper and reasonable opportunity of hearing to the appellant.
Perused therecords. None respondedfor the appellant. Heard Ld. DR for the respondent revenue, who supported the impugned order.
We notice that the show cause notice dated 10.10.2025 required compliance from the assessee by 14.10.2025 and the impugned order was passed on 17.10.2025 for non-compliance. We are of the consistent view that the grant of only four days time to assessee for making submissions in response to the above show cause notice can not be treated to besufficient. The impugned orders havethus been passed in gross violation of the principles of natural justice. In such facts and circumstances and in the interest of justice, we set aside the impugned orders and remit the matters back to the file of Ld. CIT (E) with the direction to decide the matter on merits afresh in accordance with the law after affording sufficient opportunity of hearing to the assessee. The appeals are liable to be allowed for statistical purposes.