2023 (9) TMI 1605 - AT - Income Tax

Denial of registration u/s 12AB and 80G - AR submitted that the order of the CIT(E) rejecting the applications filed by the assessees in Form No.10AB for registration u/s 12AB and 80G was issued and served on the assessee and the assessee filed appeals before the Tribunal. By the time the assessee s appeals came up for hearing before the Tribunal, registration was granted u/s 12AB and 80G of the Act by the Ld.CIT(E) and the grievance stood redressed. AR pleaded for withdrawal of the appeals for which the Ld.DR has raised no objection. HELD THAT - Since the assessee s applications for registration u/s 10AB and 80G were considered and the assessee was granted registration u/s 12AB and 80G of the Act and the assessee pleaded for withdrawal of the appeals, we have no hesitation to permit the assessee for withdrawal of the appeals.

Summary

Issues:
Appeal against rejection of registration u/s 12AB and 80G of the Income Tax Act, 1961.

Detailed Analysis:

1. The appeals were filed against the orders of the Commissioner of Income Tax (Exemption) rejecting applications for registration u/s 12AB and 80G of the Income Tax Act. The appeals were clubbed together as they pertained to two charitable trusts. The assessees failed to provide the required information and documentary evidence in response to notices issued regarding the registration applications.

2. The assessees raised grounds of appeal challenging the rejection of their applications. They argued that the Commissioner's decision was contrary to facts and the applicable law. They contended that the applications were wrongly treated as infructuous and that once registration in Form No.10AC was granted, filing Form No.10AB was necessary.

3. The Authorized Representative (AR) representing the assessees informed the Tribunal that registration u/s 12AB and 80G had been granted by the Commissioner subsequent to the filing of the appeals. As a result, the assessees requested withdrawal of the appeals. The Departmental Representative (DR) did not object to the withdrawal.

4. After hearing both parties and reviewing the records, the Tribunal noted that registration had been granted to the assessees u/s 12AB and 80G. Considering the assessees' request for withdrawal of the appeals, the Tribunal permitted the withdrawal, resulting in the dismissal of the appeals.

5. The Tribunal pronounced the order allowing the withdrawal of the appeals on 15th September 2023. The appeals were dismissed as withdrawn, bringing an end to the litigation regarding the rejection of registration applications u/s 12AB and 80G of the Income Tax Act, 1961.

This judgment highlights the importance of complying with procedural requirements for registration under the Income Tax Act and the possibility of appeals being withdrawn if the registration is subsequently granted.