2024 (7) TMI 444 - AT - Income Tax

Denial of registration u/s. 12AB - CIT(E) unable to arrive about the genuineness of the activities carried out by the assessee and thereby rejected the application for registration - HELD THAT - The decision of the Co-ordinate Bench 2023 (9) TMI 1493 - ITAT AHMEDABAD is clearly distinguishable with the facts of the present case, wherein assessee replied to the notices issued by CIT(E) and also produced copies of the Paper Book before us. It is for this reason, the Co-ordinate Bench of this Tribunal, the very same Members of the Bench, set aside the matter back to the file of the CIT(E) and to examine the documents afresh in accordance with the provisions of law after affording reasonable opportunity of hearing to the assessee. But in the present case, the Ld. CIT(E) clearly recorded the assessee failed to furnish any detail pursuant to the notices issued - In the absence of any details, the Ld. CIT(E) unable to satisfy himself about the genuineness of the activities carried out by the assessee and also rejected that the Applications in Form 10AB filed beyond the due date prescribed under the Act. No infirmity in the order passed by the Ld. CIT(E). Appeal filed by the assessee is hereby dismissed.

Summary

Issues Involved:
- Denial of registration under section 12AB of the Income Tax Act, 1961 due to non-compliance with document submission requirements and failure to establish genuineness of activities.

Analysis:

Issue 1: Denial of Registration under Section 12AB
The appeal was filed by the Assessee against the order denying registration under section 12AB of the Income Tax Act, 1961. The Assessee, a Trust, failed to provide necessary documents and details regarding its activities despite multiple notices from the Ld. CIT(E). The Ld. CIT(E) issued notices requesting information on activities, bank statements, trustee identity proofs, and other essential documents as per Rule 17A of the Income Tax Rules. The Assessee did not comply with these requests, leading to the rejection of the registration application. The Ld. CIT(E) emphasized the importance of verifying the genuineness of activities and compliance with legal requirements before granting registration under section 12AB. The judgment cited relevant legal provisions and Supreme Court decisions to support the decision-making process.

Issue 2: Appeal and Dismissal
The Assessee appealed the decision, citing errors in law and facts, arguing that tangible material was submitted during the proceeding under section 12AB. However, during the hearing, no representation was made on behalf of the Assessee, and the Co-ordinate Bench decision from a similar case was found to be distinguishable. The Co-ordinate Bench decision highlighted the importance of providing necessary details and documents to support the application. In the present case, since the Assessee failed to furnish any details, the Ld. CIT(E) was unable to verify the genuineness of activities or the timely filing of the application. The appeal was dismissed as the grounds raised by the Assessee were deemed devoid of merit, and the case law cited was found inapplicable to the current situation.

In conclusion, the denial of registration under section 12AB was upheld due to the Assessee's non-compliance with document submission requirements and the failure to establish the genuineness of activities. The dismissal of the appeal was based on the lack of representation during the hearing and the absence of supporting details or documents. The judgment emphasized the importance of providing complete and accurate information to ensure compliance with legal provisions and the verification of activities for registration purposes.