Tribunal Grants Appellant's Request for Final Opportunity Amid Pandemic Challenges

The tribunal set aside the ex parte order denying registration under section 12AA of the Income Tax Act, acknowledging the appellant's challenges in complying due to the pandemic and technical issues. The appellant's request for a final opportunity to submit required details was granted, emphasizing adherence to principles of natural justice. The appeal was allowed for statistical purposes, highlighting the importance of providing a fair chance for representation.

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Issues:
1. Denial of registration u/s.12AA of the Income Tax Act, 1961 by the Ld. CIT(Exemption) Pune.
2. Violation of natural justice by finalizing the order ex parte.
3. Non-compliance due to pandemic situation and technical issues.
4. Request for a final opportunity to furnish requisite details/evidences.

Analysis:
1. The appeal arose from the denial of registration u/s.12AA of the Income Tax Act, 1961 by the Ld. CIT(Exemption) Pune. The applicant, a non-profit company registered under section 8 of the Companies Act, applied for exemption benefits under section 12AA. The Ld. CIT(Exemption) rejected the application due to non-submission of requested details and evidences, which the applicant claimed was beyond their control. The applicant highlighted their charitable activities and the challenges faced in responding to notices issued by the department.

2. The main contention of the appellant was the violation of natural justice in finalizing the order ex parte. The appellant argued that they were not given a fair opportunity to be heard due to technical issues and the pandemic situation. They claimed that notices were not received timely, and when attempts were made to comply, technical difficulties hindered the submission of required documents. The appellant emphasized that despite efforts to communicate with the department, their grievances were not addressed before the final order was passed.

3. The tribunal noted the circumstances surrounding the non-compliance, considering the impact of the pandemic on office operations, especially in Pune. The tribunal acknowledged the appellant's genuine efforts to respond to the notices and upload necessary documents. It was observed that the non-compliance was not deliberate but a result of practical challenges faced by the appellant. The tribunal, in the interest of justice, set aside the ex parte order and directed the appellant to provide the requested details/evidences to represent their case effectively.

4. The Ld. Counsel for the appellant requested a final opportunity to furnish the requisite details in the interest of natural justice, which was not opposed by the Ld. DR. The tribunal, recognizing the exceptional circumstances and the appellant's good faith efforts, allowed the appeal for statistical purposes. The order was pronounced on January 7, 2021, emphasizing the importance of adhering to principles of natural justice and providing a fair chance for representation in such matters.

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