Appeal allowed for fresh consideration of registration under sections 12AB and 80G due to missing registered email ID in notices

ITAT Raipur allowed the appeal and restored the matter to CIT(Exemption) for fresh consideration of registration under sections 12AB and 80G. The assessee was denied registration for non-compliance in submitting required documents despite three opportunity letters. The assessee claimed non-receipt of communications due to missing registered email ID in notices. ITAT found merit in this claim, noting the registered email ID was absent from notice copies. Following precedent, the tribunal ruled that in fairness, the application should be reconsidered allowing the assessee to provide evidence and submissions.

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Issues:
Appeal against orders passed by Ld. CIT(Exemption) under sections 12AB and 80G of the Income Tax Act, 1961. Non-compliance by the assessee with notices issued by CIT(Exemption). Validity of communication through email. Opportunity of being heard to the assessee. Restoration of the matter to the file of CIT(Exemption) for reconsideration.

Analysis:
The appeals were filed by the assessee against orders passed by the Ld. CIT(Exemption) under sections 12AB and 80G of the Income Tax Act, 1961. The assessee had applied for registration under section 12AB, but failed to comply with notices issued by the CIT(Exemption) despite multiple opportunities. The Ld. AR contended that the notices were not validly communicated as they were not received on the registered email id of the assessee. The Ld. CIT-DR supported the order of rejection due to non-compliance. The Tribunal noted the absence of the registered email id in the notices and referred to a relevant case law. In light of the Delhi High Court decision, the Tribunal held that the matter should be restored to the file of the CIT(Exemption) for reconsideration, ensuring the assessee is given a fair opportunity to present its case with supporting evidence.

Regarding the appeal under section 80G, similar facts of non-compliance by the assessee with notices were presented. The Tribunal, applying the decision made in the appeal under section 12AB, allowed the grounds of appeal raised by the assessee for statistical purposes. Both appeals were allowed for statistical purposes, emphasizing the need for a fair opportunity for the assessee to be heard and for compliance with necessary procedures. The orders were pronounced on 27/09/2023, granting relief to the assessee in both matters.

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