2022 (7) TMI 1531 - AT - Income Tax

Denial of registration u/s. 12AA - non-receipt of notices of hearing - as claimed on behalf of the Society that it had received only one notice, i.e., dated 15-10-2020, on 27-10-2020, wherein the date for filing the reply was mentioned as 26-10-2020, so as to be of no consequence - HELD THAT - As regards the pleading of Appellant-society the same is neither here nor there inasmuch as the Revenue would send notices only at the email ids provided thereto for the purpose. Two, the addressee s email id or the proof of delivery furnished by the ld. CIT-DR is not refuted. The affidavit dated 02/7/2022 thus stands disproved to that extent. We are disinclined to, in view thereof, i.e., the assessee making a wrong averment per a sworn statement, accord much credence thereto. In any case, the assessee became aware of the proceedings being on in it s case on the receipt of notice dated 15/10/2020 on, as stated, 27/10/2020 and, in fact, ought to have been ready with the case. We, in view of the supervening circumstance of the pandemic, consider it proper to, in the interest of justice, take a liberal view of the matter. No prejudice would also stand to be caused to the Revenue, except, of course, the administrative load that any remission entails. We also abstain imposing cost in view of, as afore-stated, the pandemic. The matter is accordingly restored back to the file of the ld. CIT(E) for affording one final opportunity to the assessee to present it s case before the competent authority.

Summary

Issues:
1. Registration of a society under section 12A of the Income Tax Act, 1961.
2. Non-receipt of notices by the appellant.
3. Discrepancy in the affidavit regarding notice receipt.
4. Impact of the pandemic on the proceedings.

Analysis:
1. The appeal was filed against the rejection of registration under section 12A of the Income Tax Act. The Tribunal had earlier directed the competent authority to reexamine the society's claim. The ld. CIT(E) proceeded with the case in the absence of a reply from the appellant and rejected the registration application. The society contended that it did not receive certain notices, leading to a request for a fresh adjudication in compliance with the Tribunal's directions.

2. The appellant claimed non-receipt of notices, specifically challenging the delivery of one notice. An affidavit was submitted regarding the non-receipt of notices, but the ld. CIT-DR presented evidence contradicting this claim. The Tribunal found the affidavit disproved to some extent due to the evidence provided by the ld. CIT-DR. Despite this, considering the impact of the pandemic, the Tribunal decided to remit the matter back to the ld. CIT(E) for a final opportunity for the appellant to present its case.

3. The Tribunal acknowledged the appellant's awareness of the proceedings upon receiving a notice, emphasizing the need for readiness in the case. However, due to the exceptional circumstances of the pandemic, a liberal view was taken to ensure justice. No prejudice to the Revenue was foreseen, and no costs were imposed. The ld. CIT(E) was directed to provide a final opportunity for the appellant to present its case, ensuring a fair procedure and compliance with the law.

4. In conclusion, the Tribunal allowed the appeal for statistical purposes, restoring the matter to the ld. CIT(E) for further adjudication. The appellant assured cooperation and readiness with the case, emphasizing the need for notices to be sent to the correct email addresses for prompt responses. The decision was pronounced in open court on July 21, 2022.