2024 (8) TMI 1293 - AT - Income Tax

Denial of grant of registration u/s.12A - Non sufficient time for compliances - appellant trust was asked to furnish certain information/clarification on discrepancies noticed in the information filed by on or before 11.03.2024 - HELD THAT -CIT(Exemptions) has not given sufficient time to the appellant trust for compliance. The time given is a very short period, i.e. less than one week, which is against the Standard Operative Procedure ( SOP ) issued by the CBDT dated 19.11.2020, wherein, minimum period of 15 days is required to be given to the assessee to comply with notices u/s 142(1) from the date of issue of the notice. The Hon ble Delhi High Court in the case of Dauphin Travel Marketing Private Limited 2023 (7) TMI 1355 - DELHI HIGH COURT taking note of this SOP held that the grant of insufficient time to respond the notice violates the principles of natural justice and, therefore, set-aside the assessment. Thus, it is clear that the appellant trust was given unreasonably very short period of time to respond to the notice, which is against the principles of natural justice. Appeal of the appellant is partly allowed for statistical purposes.

Summary

The appellant trust filed an appeal against the denial of registration under section 12A of the Income-tax Act, 1961. The CIT(Exemptions) rejected the application due to alleged discrepancies without giving sufficient time for compliance. The Tribunal found the approach unreasonable and remanded the matter for re-consideration. The appeal was partly allowed for statistical purposes. (Judgement by Appellate Tribunal ITAT Pune on August 20, 2024)