UNNATI JAN KALYAAN SHIKSHAN SAMITI, RAIPUR,RAIPUR vs. COMMISSIONER OF INCOME TAX (EXEMPTION), BHOPAL, BHOPAL

That on the facts and in the circumstances of the case and in law, the Commissioner of Income Tax (Exemption) failed to provide an effective opportunity of heard to the appellant.

Brief facts in this case are that the assessee had applied for registration under the new provisions of section 12AB of the Act and three opportunity letters were issued to the assessee by the CIT(Exemption) and various documents were called for to process the application and to verify the object and activities of the assessee. In response to the letter, the assessee has not submitted the requisite documents. Considering the aforesaid facts, the CIT(Exemption) was of the view that the application of the assessee cannot be processed due to non-compliance of the assessee, thus, the same is hereby rejected.

Aggrieved with the order of the CIT(Exemption), the assessee carried the matter in appeal before us.

At the very outset, the Ld. AR for the assessee drew our attention to the copies of the notices issued to the assessee on 06.04.2023, 15.05.2023 and 30.05.2023 by the office of the CIT(Exemption), Bhopal pertains to the application of the assessee for registration /approval u/s.12AB of the Act. Copies of one of the notices referred to by the assessee placed at Page 3 to 5 of the assessee’s paper book are extracted as under:

It was submitted by the Ld. AR that since the assessee was prevented by reasonable cause that the notices issued by the Ld.CIT(Exemption), Bhopal were neither communicated to the assessee on the registered email id of the assessee i.e. cahhabda@gmail.com nor through real time alerts, thus, the application of the assessee for granting of registration which was rejected by the Ld. CIT(Exemption) was without adequate or proper opportunity to the assessee and therefore, the assessee may be allowed another opportunity to represent its case on merits before the CIT(Exemption).

Contrary to the submissions of the Ld. AR, the Ld. CIT-DR submitted that as the assessee has applied for registration under the new provisions of section 12AB of the Act and three opportunity letters were issued to the assessee by the CIT(Exemption) and various documents were called for to process the application and to verify the object and activities of the assessee. However, the assessee

We have heard the rival contentions and perused the material available on record and case law relied upon by the Ld. AR for our consideration. Admittedly the assessee has filed an application for granting of registration u/s.12AB of the Act before the CIT(Exemption), Bhopal. However, though the assessee had been provided three opportunities i.e. 06.04.2023, 15.05.2023 and 30.05.2023, the assessee remain non-compliant towards such notices. On a perusal of the copies of the notices it is apparent that the registered email id of the assessee were missing, therefore, the assessee’s claim that such notices were never delivered in the email id of the assessee, could not be discarded. Under such circumstances, in the interest of justice and respectfully following the decision of the Hon’ble Delhi High Court in the case of Suman Jeet Agarwal v. ITO - [2022] 143 taxmann.com 11 (Delhi), we are of the considered view that in all fairness the matter should be restored to the file of the CIT(Exemption) so that application of the assessee can be considered in light of the evidence /information/explanation /submission of the assessee. We order accordingly. Needless to say, the Ld. CIT(Exemption) shall grant reasonable opportunity of being heard to the assessee who shall remain at liberty to substantiate its claim on the basis of supporting documentary evidence. The assessee is also directed to make necessary compliances as and when called for failing which the Ld. CIT(Exemption) would be at liberty to dispose of the application in accordance with law.

In the result, appeal of the assessee in is allowed for statistical purposes in terms of our aforesaid observations.

with respect to the captioned appeal i.e. the application for granting registration u/s.80G was also dealt with by the Ld. CIT(Exemption) with similar facts wherein the assessee was unable to comply with the notices of the Ld. CIT(Exemption) on three occasions viz. 06.04.2023, 15.05.2023 and 30.05.2023. However, under similar circumstances, the assessee had neither received any notices in the registered email id nor any real time alerts, therefore, the assessee was prevented by reasons beyond its control to make requisite compliance before the CIT(Exemption). Since the facts and circumstances of the ITA No.279/RPR/2023 wherein the assessee has requested for registration u/s.80G which was rejected by the Ld. CIT(Exemption) vide order dated 08.06.2023, having same set of facts except for request for registration under different sections, our decision rendered in ITA No.278/RPR/2023 qua application for registration u/s.12AB of the Act shall mutatis mutandis apply in ITA No.279/RPR/2023. Thus, grounds of appeal raised by the assessee are allowed for statistical purposes in terms of our aforesaid observation as were recorded by us while deciding the appeal in ITA No.278/RPR/2023.

In the result, appeal of the assessee in is allowed for statistical purposes in terms of our aforesaid observations.