Tribunal sets aside CIT(A) order, directs fresh consideration under section 12AA(1)(b)(ii) of IT Act

The Tribunal allowed the Revenue's appeal, setting aside the Ld. CIT(A)'s order and directing a fresh consideration of the issues. The Tribunal found merit in the Revenue's contentions regarding the rejection order under section 12AA(1)(b)(ii) of the IT Act, instructing a thorough review and a speaking order after providing the assessee an opportunity to be heard.

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Issues:
1. Consideration of findings by Ld. CIT(A) in relation to rejection order u/s 12AA(1)(b)(ii) of I.T. Act, 1961.
2. Treatment of society as trust and deletion of additions despite rejection order u/s 12AA(1)(b)(ii) of IT Act.
3. Ex-parte decision due to non-appearance of assessee.
4. Assessment of income without registration u/s 12A.
5. Allowance of benefits of exemption by Ld. CIT(A) and subsequent appeal by Revenue.

Analysis:

1. The first issue revolves around the Ld. CIT(A)'s consideration of findings in relation to the rejection order u/s 12AA(1)(b)(ii) of the I.T. Act, 1961. The Revenue contended that the Ld. CIT(A) did not adequately consider the findings of the AO and the rejection order issued by CIT(E), Lucknow. The Revenue argued that the registration claim under form no 10A was false, leading to non-granting of registration u/s 12A. The Tribunal found merit in the Revenue's contentions and set aside the impugned order, directing the Ld. CIT(A) to reconsider the issue in dispute thoroughly and pass a speaking order after giving the assessee an opportunity to be heard.

2. The second issue pertains to the treatment of the society as a trust and the deletion of additions despite the rejection order u/s 12AA(1)(b)(ii) of the IT Act. The AO treated the society as an Association of Persons (AOP) due to lack of registration u/s 12A. However, the Ld. CIT(A) allowed the appeal of the assessee, granting benefits of exemption until the formal registration order was received by the AO. The Tribunal acknowledged the Revenue's argument that the Ld. CIT(A) did not fully consider the AO's findings and the rejection order by CIT(E), Lucknow. Consequently, the Tribunal set aside the impugned order for a fresh consideration.

3. The third issue arose from the ex-parte decision due to the non-appearance of the assessee during the hearing. Despite sending notices, the assessee did not appear, leading to an ex-parte decision. The Tribunal, after hearing the Ld. DR, proceeded with an ex-parte decision, considering the facts and circumstances of the case.

4. The fourth issue concerns the assessment of income without registration u/s 12A. The AO assessed the income of the assessee as an AOP due to the absence of registration u/s 12A. The Tribunal noted that the assessee failed to produce the registration certificate u/s 12A, leading to the assessment of income without the benefits of exemption.

5. The fifth issue involves the allowance of benefits of exemption by the Ld. CIT(A) and the subsequent appeal by the Revenue. The Ld. CIT(A) granted benefits of exemption to the assessee until the formal registration order was received by the AO. However, the Revenue contended that the Ld. CIT(A) did not adequately consider the AO's findings and the rejection order by CIT(E), Lucknow. The Tribunal agreed with the Revenue's contentions and set aside the impugned order for a fresh consideration by the Ld. CIT(A).

In conclusion, the Tribunal allowed the appeal filed by the Revenue for statistical purposes, setting aside the impugned order and directing a fresh consideration of the issues in dispute.

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