BHARTIYA VICHAR SADHANA FOUNDATION,PUNE vs. CIT, (EXEMPTION), PUNE, PUNE

The appeal filed by the assessee is directed against the order dated 11.03.2024 of the Ld. Commissioner of Income Tax (Exemption), Pune [“CIT(E)”] whereby he rejected the application filed by the assessee on 28.09.2023 in Form No. 10AB u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (the “Act”) and cancelled the provisional registration granted on 06.04.2022 u/s 12AB r.w.s. 12A(1)(ac)(vi) of the Act.

The assessee has raised the following grounds:- “

Briefly stated, on receipt of the impugned application moved by the assessee, the Ld. CIT(E) issued notice through ITBA portal on 15.11.2023 which was duly served upon the assessee through e-portal and e-mail requiring the assessee to upload information/clarification as detailed in paras 2 (i) to (xv) and seeking explanation as per paras 2 (a) to (h). In case the assessee was engaged in running educational institution(s), the assessee was required to furnish details sought in para 2.1 (i) to (xiii). If the assessee was engaged in running a hospital/nursing home/health care centre, information/details were sought as per paras 2.2 (a) to (e). The assessee was further required to ensure that self certified copy of attachments as per the provisions of Rule 17A(2) of the Income Tax Rules, 1962 as applicable be submitted. It was clarified that above information/details were called for under the provisions of section 12AB(1)(b)(i) of the Act. Compliance was sought by 29.11.2023.

The assessee filed its reply containing the requisite details on 28.11.2023, copy of which is available at pages 5-8 of the assessee’s paper book.

The Ld. CIT(E) verified the details and documents and noticed certain discrepancies which he communicated to the assessee through notice dated 26.02.2024. The compliance was sought by 04.03.2024. The Ld. CIT(E) took the drastic step of rejecting the assessee’s impugned application and cancelling the provisional registration granted on 06.04.2022 u/s 12AB r.w.s. 12(a)(1)(ac)(vi) of the Act as according to him the assessee did not furnish explanation to the alleged discrepancies.

Aggrieved, the assessee is in appeal before the Tribunal and both the grounds relate thereto.

The Ld. AR submitted that vide letter dated 01.03.2024 the copy of which is placed at pages 1-2 of the paper book, the assessee sought adjournment of hearing scheduled on 04.03.2024 until 12.03.2024 as the assessee had earnest desire to furnish comprehensive response, but in the meantime on 11.03.2024 the Ld. CIT(E) passed the impugned order which is in violation of the principles of natural justice.

The Ld. DR supported the order of Ld. CIT(E).

We have considered the rival submissions and perused the records. We are of the view that in the interest of justice and fair play the matter be set aside and restored back to the file of Ld. CIT(E) for decision afresh in accordance with law after allowing reasonable opportunity of being heard to the assessee. We order accordingly.

In the result, the appeal of the assessee is treated as allowed for statistical purpose.