Education Concern vs CIT (Exemptions)

PER SHRI M BALAGANESH, ACCOUNTANT MEMBER:

The appeal in ITA Nos.172 & 173/Del/2026 for AY 2025-26, arises out of the Id. Commissioner of Income Tax (Exemptions), Chandigarh [hereinafter referred to as 'Id. CIT(E)', in short] dated 11.11.2025 for registration of u/s 12AA and 80G of the Income Tax Act, 1961.

None appeared on behalf of the assessee despite issuance of notice. Hence we proceed to dispose of these appeals on hearing the learned DR and based on materials available on record.

The effective issue to be decided in this appeal is as to whether the learned CIT(E) was justified in denying the registration under section 12AB of the Act and consequential exemption under section 80G of the Act in the facts and circumstances of the instant case.

We have heard the learned DR and perused the materials available on record. The assessee is stated to be a charitable society and preferred an application seeking registration under section 12A(1)(ac)(ii) of the Act on 27-08-2025. The learned CIT (exemptions) sought for certain details during the course of proceedings seeking registration. The assessee society only sought adjournment and did not furnish the requisite documents and accordingly the learned CIT (exemptions) proceeded to dismiss the application of the assessee seeking registration of the society under section 12AB of the Act. The assessee was unable to comply with the notices as the notices were uploaded only on the e-filing portal and the same were neither duly served upon nor received at application under section 12A(1)(ac)(iii) of the Act in Form 10AB vide order in Form 10AD on the ground that it was deficient in factual evidences due to the assessee’s failure to furnish the requisite documents on the scheduled dates of hearings. The assessee had no knowledge of the proceedings before the ld CIT(E ) as the notice of hearings were sent only in the e-filing portal and not in the registered email ID of the assessee. It was also submitted that mere uploading of notice on the e-filing portal does not constitute valid service of notice within the meaning of section 282 of the Act read with Rule 127 of the income tax Rules 1962 as held by the Hon’ble Punjab and Haryana High Court in the case of Munjal BSU Centre of Innovation and Entrepreneurship, Ludhiana vs CIT (Exemptions) Chandigarh reported in 463 ITR 560 (P&H). The Hon’ble High Court in the said order also observed that an assessee cannot be expected to continuously monitor the e-filing portal and that adherence to the principles of natural justice is an indispensable requirement before passing an adverse order against the assessee. Considering the fact that assessee could not respond to the various notices which were uploaded on the e-filing portal for reasons beyond its control, we deem it fit and appropriate, in the interest of justice and fair play, to restore this appeal to the file of ld CIT(E ) for denovo adjudication in accordance with law. The assessee is directed to furnish all the documentary evidences in support of its contentions and file all the requisite documents that were called for by the ld CIT(E ) from time to time. With these observations, the grounds raised by the assessee are allowed for statistical purposes in the appeal filed in ITA No. 172/Del/2026.

The appeal in ITA No. 173/Del/2026 is consequential to appeal in ITA No. 172/Del/2026. Hence both the appeals are restored to the file of ld CIT(E) for denovo adjudication in accordance with law.

In the result, both the appeals of the assessee are allowed for statistical purposes.