2023 (6) TMI 120 - AT - Income Tax

Tribunal remands case for fresh examination due to timely application filing

The Tribunal remanded the matter to the Commissioner of Income Tax (Exemption) for fresh examination after finding that the assessee had filed the ... Registration under section 12AA/12AB - provisional registration - requirement to furnish documents called for by tax authority - opportunity to furnish evidence before rejection - remand for fresh examination - CBDT Circular No. 6 of 2023 - extension of time for filing Form No.10ABRegistration under section 12AA/12AB - provisional registration - requirement to furnish documents called for by tax authority - CBDT Circular No. 6 of 2023 - extension of time for filing Form No.10AB - remand for fresh examination - Validity of CIT(Exemption)'s rejection of the application for registration filed electronically by the trust and the appropriate remedy. - HELD THAT: - The assessee filed Form No.10AB on 28-09-2022 seeking registration under section 12AA/12AB and was later called upon by the CIT(Exemption) to furnish specified documents and clarifications. The CIT(Exemption) recorded non-compliance with the requests and rejected the application. The Tribunal noted that the assessee's Form No.10AB was filed before 30-09-2022 and that CBDT Circular No. 6 of 2023 extended the time for filing applications (and further extended that timeline) thereby mitigating hardship for provisionally registered entities. In view of the Circular and in the interest of justice, the Tribunal held that the rejection was not justified without giving the assessee an opportunity to tender the documents called for; accordingly the matter is remanded to the CIT(Exemption) for fresh examination with liberty to the assessee to file evidence in support of its claim. The Tribunal allowed the grounds for statistical purposes and applied the same reasoning mutatis mutandis to the second, identical appeal. [Paras 6, 7, 8, 9, 10]The order of CIT(Exemption) rejecting the registration application is set aside and the matter is remanded to the CIT(Exemption) for fresh examination; the assessee may file supporting evidence.Final Conclusion: Both appeals are allowed for statistical purposes and the appeals are remitted to the CIT(Exemption) for fresh consideration of the registration application in light of CBDT Circular No. 6 of 2023, with liberty to the assessee to furnish the required documents. Issues involved: The judgment involves the rejection of the application seeking registration under section 12AA of the Act by the Commissioner of Income Tax (Exemption) for assessment year 2023-24. Judgment details: In the first appeal (ITA No. 519/PUN/2023), the assessee raised four grounds of appeal, with the main issue being the rejection of the application seeking registration under section 12AA of the Act by the CIT(Exemption). The assessee failed to furnish the required details as requested by the CIT(Exemption), leading to the rejection of the application. However, the CBDT issued Circular No. 6 of 2023 extending the due date for filing the application till 30-09-2023. Since the assessee had filed the application on 28-09-2022, well within the original deadline, the Tribunal deemed it fit to remand the matter to the CIT(Exemption) for fresh examination, allowing the assessee to submit the necessary documents. The grounds raised by the assessee were allowed for statistical purposes, and the appeal was allowed accordingly. In the second appeal (ITA No. 520/PUN/2023), the issue and facts were found to be identical to the first appeal. Therefore, the findings given in the first appeal were applied mutatis mutandis to the second appeal, and the appeal of the assessee was allowed for statistical purposes. Both appeals of the assessee were allowed for statistical purposes.