2021 (5) TMI 775 - AT - Income Tax

Tribunal directs new hearing for appellant, cooperation required. Grounds allowed for stats.

The Tribunal allowed the appeal, directing the Commissioner to provide the appellant with another opportunity to present its contentions and submit ... Registration u/s. 12AA(1)(b)(ii) denied - assessee submitted that the 'Ld. CIT(E)' has rejected the application for the registration u/s. 12AA(1)(b)(ii) of the Act without considering the necessary details filed in response to the notices issued by the 'Ld. CIT(E)' - HELD THAT:- The proviso to section 12AA(1) of the Act requires to grant an opportunity of being heard to the assessee before rejecting the registration application file by the assessee. Thus it is clear that the requirement of providing reasonable opportunity to the assessee is expressly inbuilt in law itself governing the procedure for registration. It is also evident from the order of the 'Ld. CIT(E)' that the assessee vide letter dated 03/02/2020 has made part compliances. Thus it is not the case that the assessee has failed to comply the notices issued by the 'Ld. CIT(E)' completely. As, such the part compliance by the assessee was accepted by the Ld. CIT(E) himself in his order. We also note that the assessee claimed to have filed various details before the Ld. CIT(E) but the same were not considered by the Ld. CIT(E). Accordingly, in our considered view the 'Ld. CIT(E)' should have granted one more opportunity to the assessee if he was not satisfied with the details filed by the assessee. Accordingly, in the interest of justice and fair play, we are inclined to give more opportunity to the assessee for placing its points of contention before the 'Ld. CIT(E)' - Decided in favour of assessee for statistical purposes. Issues involved:1. Rejection of application for registration under section 12AA(1)(b)(ii) of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Exemption).Detailed Analysis:1. The appellant raised grounds of appeal against the order of the Learned Commissioner of Income Tax (Exemption), challenging the rejection of the registration application under section 12AA(1)(b)(ii) of the Income Tax Act, 1961. The appellant contended that the rejection was invalid and should be quashed.2. The appellant argued that all necessary details, including Trust Deed, Annual Accounts, Trust Registration Certificate, PAN, Adhar of the Trustees, Bank Passbook, and declaration/undertaking, were submitted along with the registration application. Responses to notices issued by the Commissioner were also provided promptly with relevant details.3. The appellant emphasized that compliance was made with the notices issued by the Commissioner, and all details were available on the e-proceeding portal. Despite the submissions, the Commissioner rejected the application without due consideration of the furnished documents and information.4. During the hearing, the appellant's representative requested the matter to be remanded to the Commissioner for reevaluation, considering the details already submitted. The Departmental Representative did not object to this course of action.5. The Tribunal noted that the Commissioner's rejection lacked proper consideration of the details provided by the appellant. It highlighted the requirement of granting the assessee a reasonable opportunity before rejecting a registration application under section 12AA(1) of the Act.6. The Tribunal found that the appellant had partially complied with the Commissioner's notices, which were acknowledged in the order. It was observed that the Commissioner did not fully consider the details submitted by the appellant, necessitating the grant of another opportunity for the appellant to present its case.7. In the interest of justice and fair play, the Tribunal directed the Commissioner to provide the appellant with another opportunity to present its contentions and submit the necessary details. The appellant was instructed to cooperate fully in the fresh proceedings. The grounds of appeal were allowed for statistical purposes, and the appeal was allowed accordingly.This detailed analysis covers the issues raised in the judgment comprehensively, outlining the arguments presented by the appellant, the Tribunal's observations, and the final decision rendered in the case.