M B Education Society vs CIT(Exemption)

PER RAMIT KOCHAR, AM:

This appeal is filed by the assessee against order passed by Learned Commissioner of Income Tax (Exemptions), Chandigarh [CIT(E), in short) dated 12.11.2025( DIN& Notice No. ITBA/EXM/F/EXM45/2025-26/1082511457(1) rejecting application filed by the assessee for seeking registration u/s 12A(1)(c)(ii) of the Income Tax Act, 1961 (“the Act” in short).

Brief facts of the case are that assessee has filed an application dated 27.08.2025 in Form No.10AB for registration u/s 12A (1)(ac)(ii) of the 1961 Act, before learned CIT(E). The Ld. CIT(E) issued questionnaire dated 16.09.2025 to the assessee with the request to furnishing certain details ,document and/or clarification in support of the claim of the registration u/s 12A(1)(ac)(ii) of the Act. The assessee did not file reply but sought adjournment before ld. CIT(E).The ld. CIT(E) issued fresh notice dated 21.10.2025 . The assessee did not file any reply/response thereto the aforesaid notice. The ld. CIT(E) vide order dated 12.11.2025 passed in Form No. 10AD rejected the application of the assessee for seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act, on the grounds that the assessee has failed to submit the requisite details/evidences.

Aggrieved, the assessee has filed appeal before the Tribunal. The Ld. Counsel for the assessee at the outset submitted that ld. CIT(E) did not give proper and adequate opportunity of being heard to the assessee . It was submitted that ld. CIT(E) dismissed the aforesaid application filed by the assessee ex-parte, and prayers were made to restore the application before ld. CIT(E) for denovo determination of the application for grant of registration u/s 12A(1)(ac)(ii) on merits in accordance with law after providing opportunity of being heard to the assessee. The assessee has filed paper book containing 169 pages in which the assessee has filed documents in support of its contentions, with one copy handed over to ld. CIT-DR.. These are by way of additional evidences filed for the first time before the Tribunal. The said paper book is placed on record in file.The ld. Counsel for the assessee also submitted that the assessee has inadvertently obtained two PAN’s one in the status of Trust and other as Society. Now, one PAN which was inadvertently obtained is now surrendered by the assessee. The ld. CIT(E) may be requested to look into this aspect so that registration is granted under the correct status.

We have considered rival contentions and perused the materials available on record, which are culled out in preceding para’s of this order and are not repeated again. The assessee has filed application with ld. CIT(E) for grant of registration u/s 12A(1)(ac)(ii), dated 27.08.2025 . The ld. CIT(E) issued notice along with questionnaire , dated 16.09.2025 to the assessee. The assessee sought adjournment which was granted by ld. CIT(E). The ld. CIT(E) issued fresh notice dated 21.10.2025 for compliance by the assessee, but the same remained non compliant by the assessee. No further opportunity was provided by ld. CIT(E). . The ld. CIT(E) instead dismissed aforesaid application for registration u/s 12A(1)(ac)(ii) vide order dated 12.11.2025 . Principle of natural justice are clearly breached. The assessee has now filed paper book containing 169 pages in which it has filed documents to support its contentions. These documents are filed for the first time before the Tribunal and are in the form of additional evidences. These additional evidences requires examination and/or verification by the ld. CIT(E). Keeping in view facts and circumstances of the case and in the interest of justice and fairness to both parties, we are of the considered view that end of the justice will be met to send back the matter back to the file of the ld. CIT(E) for denovo determination of the application of the assessee , dated 27.08.2025 filed for seeking registration u/s 12A(1)(ac)(ii) of the 1961 Act. We clarify that we have not commented on the merits of the issues in the appeal, and the ld. CIT(E) shall pass orders on merits in accordance with law, after affording opportunity of being heard to the assessee. The assessee is directed to co-operate in the set aside remand proceedings to be conducted by the ld. CIT(E), otherwise the ld.CIT(E) shall be free to pass orders in accordance with law on merits. All the contentions are kept open. The orders of the ld. CIT(E) , dated 12.11.2025 is set aside and the matter is restored back to the file of the ld. CIT(E) for denovo determination of the aforesaid application on merits in accordance with law after giving opportunity of being heard to the assessee. Evidences/ contentions filed by the assessee before the ld. CIT(E) shall be admitted by the ld. CIT(E) and shall be decided on merits in accordance with law. The appeal of the assessee is allowed for statistical purposes. We order accordingly.

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