2023 (9) TMI 1509 - AT - Income Tax

Denial of registration /approval u/s 12AB and U/s.80G - non-compliance of the assessee by submitting relevant documents - as per CIT(E) three opportunity letters were issued to the assessee and various documents were called for to process the application and to verify the object and activities of the assessee, however, the assessee had chosen not to submit requisite documents - As submitted by the Ld. AR such communication were neither received by the assessee or email id or through real time alerts on the mobile number uploaded in the PAN profile of the assessee. HELD THAT - On a perusal of the copies of the notices it is apparent that the registered email id of the assessee were missing, therefore, the assessee s claim that such notices were never delivered in the email id of the assessee, could not be discarded. Under such circumstances, in the interest of justice and respectfully following the decision of Suman Jeet Agarwal 2022 (9) TMI 1384 - DELHI HIGH COURT we are of the considered view that in all fairness the matter should be restored to the file of the CIT(Exemption) so that application of the assessee can be considered in light of the evidence /information/explanation /submission of the assessee. We order accordingly. Appeal of the assessee allowed for statistical purposes.

Summary

Issues:
Appeal against orders passed by Ld. CIT(Exemption) under sections 12AB and 80G of the Income Tax Act, 1961. Non-compliance by the assessee with notices issued by CIT(Exemption). Validity of communication through email. Opportunity of being heard to the assessee. Restoration of the matter to the file of CIT(Exemption) for reconsideration.

Analysis:
The appeals were filed by the assessee against orders passed by the Ld. CIT(Exemption) under sections 12AB and 80G of the Income Tax Act, 1961. The assessee had applied for registration under section 12AB, but failed to comply with notices issued by the CIT(Exemption) despite multiple opportunities. The Ld. AR contended that the notices were not validly communicated as they were not received on the registered email id of the assessee. The Ld. CIT-DR supported the order of rejection due to non-compliance. The Tribunal noted the absence of the registered email id in the notices and referred to a relevant case law. In light of the Delhi High Court decision, the Tribunal held that the matter should be restored to the file of the CIT(Exemption) for reconsideration, ensuring the assessee is given a fair opportunity to present its case with supporting evidence.

Regarding the appeal under section 80G, similar facts of non-compliance by the assessee with notices were presented. The Tribunal, applying the decision made in the appeal under section 12AB, allowed the grounds of appeal raised by the assessee for statistical purposes. Both appeals were allowed for statistical purposes, emphasizing the need for a fair opportunity for the assessee to be heard and for compliance with necessary procedures. The orders were pronounced on 27/09/2023, granting relief to the assessee in both matters.