2025 (2) TMI 1068 - AT - Income Tax

Order Denied: Application for Registration Under Section 12A(1)(ac) of IT Act Reconsidered for Fairness and Due Process

The Court set aside the order rejecting the application for registration under section 12A(1)(ac) of the IT Act, finding that the assessee was not given a ... Rejection of application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) - sole contention of the assessee in the grounds of appeal that if CIT, Exemption, Pune was not satisfied with the compliance made by the assessee trust he should have had provided at-least one further opportunity to the assessee to explain his case - HELD THAT:- In the interest of justice without going into the merits of the case, we set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to him with a direction to decide the application for registration afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite/ desired documents/information in support of the application for registration without taking any adjournment further. Grounds of appeal raised by the assessee are partly allowed. The issues presented and considered in the judgment are as follows:1. Whether the order rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act was justifiedRs. 2. Whether the assessee was provided with proper opportunity to comply with the notices issued by the Ld. CIT, Exemption, PuneRs.Issue-Wise Detailed Analysis:1. The relevant legal framework and precedents: - The assessee filed an appeal against the order rejecting the registration application under section 12A(1)(ac) of the IT Act. - The Ld. CIT, Exemption, Pune issued notices to the assessee requesting information and clarification. - The Ld. CIT, Exemption, Pune rejected the application based on discrepancies in the submissions made by the assessee. Court's interpretation and reasoning: - The Court found that the assessee had complied with the notices issued by the Ld. CIT, Exemption, Pune. - The Court held that the Ld. CIT, Exemption, Pune should have provided the assessee with a further opportunity to explain their case. - The Court set aside the order and remanded the matter back to the Ld. CIT, Exemption, Pune for a fresh decision after providing a reasonable opportunity of hearing to the assessee. Key evidence and findings: - The key evidence was the notices issued by the Ld. CIT, Exemption, Pune and the submissions made by the assessee in response. - The findings indicated that the Ld. CIT, Exemption, Pune was not satisfied with the compliance made by the assessee. Application of law to facts: - The Court applied the principle of natural justice and fairness in providing the assessee with a further opportunity to present their case. - The Court emphasized the importance of due process in such matters. Conclusions: - The Court allowed the appeal filed by the assessee in ITA No.1068/PUN/2024 for statistical purposes. - The Court directed the assessee to comply with the notices and produce the required documents without adjournment.2. The relevant legal framework and precedents: - The second issue concerned whether the assessee was provided with proper opportunity to comply with the notices issued by the Ld. CIT, Exemption, Pune. Court's interpretation and reasoning: - The Court found that since the order in ITA No.1068/PUN/2024 was set aside and remanded, the appeal in ITA No.1069/PUN/2024 became infructuous. - The Court dismissed the appeal in ITA No.1069/PUN/2024 based on the decision in ITA No.1068/PUN/2024. Conclusions: - The Court dismissed the appeal filed by the assessee in ITA No.1069/PUN/2024.Significant Holdings:- The Court held that the Ld. CIT, Exemption, Pune should have provided the assessee with a further opportunity to explain their case.- The Court allowed the appeal in ITA No.1068/PUN/2024 and dismissed the appeal in ITA No.1069/PUN/2024.Order pronounced on 29th day of January, 2025.