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Judgment
PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the orders of the Commissioner of Income Tax (Exemption), Chandigarh [hereinafter referred to as “CIT(E)”] vide order dated 04.03.2025.
The appeal is time barred by 249 days. In the condonation application the assessee stated that the appeal should have filed within 60 days but filed 249 days of delay. He stated that appeal could not filed within time because the order was not served on the assessee. The department has sent the order on the assessee’s email mentioned as [email protected] whereas in form 10AB the emails were provided for the correspondence. The assessee has shown the sufficient cause not to file the appeal within time. We find merit of the contention of the assessee, and condoned the delay in filing the appeal, and admit the same for adjudication on merits.
The assessee has raised the following ground in appeal as under:
1.That the Learned CIT (Exemptions) erred in law and on facts in rejecting the application for registration filed in Form 10AB u/s 12A(1) (ac) of the Income -tax Act, 1961.
2.That the Learned CIT (Exemptions) erred in law and on facts in rejecting the application for registration filed in Form 10AB u/s 12A(1) (ac) of the Income -tax Act, 1961. Without affording reasonable opportunity of being heard.
3.That the Learned CIT (Exemptions) has grossly erred in holding that the provisional registration earlier granted was “bad in law” merely on the ground that the trust had commenced its charitable activities prior to the grant of provisional registration.
4.That the Learned CIT (Exemptions) failed to appreciate that commencement of charitable activities prior to the application does not disentitle the trust from seeking regular registration u/s 12AB and such commencement cannot be a valid ground for outright rejection of registration.
5.That the Ld. CIT (exemptions) erred in law in misinterpreting and misapplying the provisions of section 12A(1)(ac) ignoring the legislative intent of granting registration to genuine charitable institutions after verification of objects and activities
6.That the rejection of registration on the ground that provisional registration “could not have been granted” is beyond the scope of proceedings u/s 12A(1) (ac) (iii) as the correctness or validity of earlier provisional registration was not the subject matter of the application.
7.That the Ld. CIT (exemptions) erred in not examining the genuineness of the activities of the appellant trust in a judicious and objective manner, despite the appellant having furnished submissions and details during the course of proceedings.
8.That the Ld. CIT (exemptions) failed to point out any specific defect in the objects of the trust or any adverse findings that the activities carried on were non-charitable or not in accordance with the objects of the trust.
9.That the order passed is arbitrary legally unsustainable, contrary to the principles of natural justice and liable to be quashed.
10.The appellant craves leave to add alter amend or withdraw any of the above ground at the time of hearing.
The Ld. CIT(E) rejected the application of the applicant for registration under section 12 A (1) (ac) (iii) of the Income -tax Act (“the Act”) holding that the provisional registration granted is bad in law.
Ld. AR of the assessee submitted that the application was rejected without giving the opportunity of being heard to the assessee
The Ld. DR has submitted that the Ld. AR has failed to provide the relevant documents before the Ld. CIT (E), the application was rightly rejected.
We have heard the parties and perused the material available on record. The assessee has failed to file the required details/ information before the Ld. CIT(E) regarding the grant of approval under section 12A(1) (ac) (iii) of the Act. The Ld. CIT(E) rejected the registration application of the assessee without being heard to the assessee. Since in the instant case the Ld. CIT(E) has dismissed the application in non-compliance therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(E) with a direction to grant one final opportunity to the assessee to substantiate , its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. CIT(E) and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purpose.