Friends of People for Active Democracy vs Income Tax Officer, Ward-1(1), Exemption, Delhi

PER M. BALAGANESH, A. M.:

The appeal in ITA No. 9163/Del/2025, arises out of the order of the ld ld. Commissioner of Income Tax (Exemptions), New Delhi [hereinafter referred to as ‘ld. CIT(E)’, in short] dated 15.11.2022 for registration of u/s 12AA and 80G of the Income Tax Act, 1961.

The only issue to be decided in this appeal is as to whether the ld CIT(E) was justified in rejecting the application filed by the assessee trust in Form 10AB without providing adequate opportunity to the assessee in the facts and circumstances of the instant case.

We have heard the rival submissions and perused the material available on record. The assessee is public charitable trust. The assessee trust was formed on 31.10.2013 vide trust deed dated 31.10.2013 to carry out the charitable objects mentioned in para 4 of the trust deed containing the list of aims and objects. On perusal of the said aims and objects, it is very clear that assessee’s activities clearly fall within the definition of charitable purpose as defined in Section 2(15) of the Act. The assessee preferred an application seeking for registration in Form 10AB on 02.06.2022 before the ld CIT(E). The assessee submitted the audited income and expenditure and audited balance sheet for the years ended on 31.03.2019, 31.03.2020 and 31.03.2021 before the ld CIT(E). Queries were raised by the ld CIT(E) vide letter dated 01.11.2022. The said query was sent in email by the ld CIT(E) to the email ID [email protected]. Another notice dated 09.11.2022 and 15.11.2022 were issued to very same email ID. These notices were not complied with by the assessee as according to the assessee, the notice for hearing were not at all served at the email address mentioned by the assessee in Form 10AB. It is pertinent to note that the email address in Form 10AB by the assessee is [email protected] and that email ID [email protected] was never mentioned in Form 10AB at all. Hence, the non compliance to the various notices issued by the ld CIT(E) is beyond the control of the assessee as the notices were served on the wrong email address not pertaining to the assessee. The ld CIT(E) due to non compliance of the assessee had proceeded to reject the application seeking registration of the assessee. The said rejection order was however served at the correct email address of the assessee i.e. [email protected].

Considering the aforesaid facts, it is very clear that notice of hearing was not served in the correct email ID of the assessee and hence we hold that assessee deserves one more opportunity before the ld CIT(E) to furnish all the requisite details that were called for in connection with the application seeking registration of the trust. With these observations, we restore the appeal of the assessee to the file of the ld CIT(E) for de novo adjudication in accordance with law. The assessee is also directed to cooperate with the ld CIT(E) for expeditious disposal of its application seeking registration in its own interest, by not taking unwarranted adjournments except due to exceptional or bonafide circumstances. The grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.