KSRAJU LEGAL,CHANDIGARH vs. CIT (EXEMPTION), CHANDIGARH

During the course of hearing, the Ld. AR submitted that the assessee is duly registered under the Indian Trust Act, 1882 and it was granted provisional registration under section 12AB of the Act on 28/05/2021. Thereafter, it moved an application in Form No. 10AB seeking permanent registration under section 12A(1)(ac)(ii) of the Act on 31/03/2022 which was rejected by the Ld. CIT(E) vide order dt. 23/09/2022 stating that the assessee has failed to respond to the notices issued from time to time and due to non-submission of requisite information and documentation to verify the objects and the genuineness of the activities being carried out by the assessee.

It was submitted that the assessee did not receive any notice from the office of the Ld. CIT(E) either through email or through physical mode hence due to non-receipt of notices, the necessary information/documentation could not be submitted before the Ld. CIT(E). It was submitted that in the interest of justice, the assessee be granted an opportunity to provide the necessary information/documentation before the Ld. CIT(E) and the matter may accordingly be set aside to the file of the Ld. CIT(E).

The Ld. CIT DR submitted that the application seeking registration was dismissed by the Ld. CIT(E) on account of lack of requisite documentation to ascertain the objects and activities carried on by the assessee. At the same time it was submitted that Revenue has no objection where the matter is set aside to the file of the Ld. CIT(E) to examine the matter afresh.

We have heard the rival contentions and purused the material available on record. Admittedly, due to non-receipt of notices by the assessee, the assessee was prevented by sufficient cause to submit the necessary information/documentation as so called for by the ld CIT(E) to examine the application seeking the final registration u/s 12AB and the application so filed by the assessee seeking final registration U/S 12AB was dismissed by the ld CIT(E). Given that the assessee, through its ld AR, has sought liberty to submit the necessary information/documentation before the ld CIT(E) and which has not been opposed by the ld CIT/DR, we deem it appropriate to remit the matter to the file of the ld CIT(E) to decide the same afresh after providing reasonable opportunity to the assessee. The matter is accordingly set-aside to the file of the ld CIT(E).

In the result, the appeal of the assessee is allowed for statistical purposes.