In a recent case before Bombay High Court the impugned notice of Income tax department canceling trust registration application was set aside as the notice regarding the decision was sent to an incorrect email address.
The petitioner, Little Sisters of the Poor Sawantwadi, claims to be a non-profitable institution, running a home for aged persons, challenged an order passed by the respondent The Commissioner of Income Tax (Exemption).
Wherein the petitioner’s application was rejected and provisional registration was also canceled. The petitioner claims to have done its activities as a public trust and that its provisional registration under section 12 AB which was to expire on 6th May 2026 was approved by respondent.
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The petitioner accordingly did make an application on 9th May 2023 for registration by filing form 10 AB under rule 17 A of the Income Tax rules. The respondent issued an impugned notice to process the application , the petitioner contended that the notice was dispatched from the office of respondent.
By such notice, the petitioner was called upon to attend a hearing, the notice was received by the petitioner after the scheduled date of hearing. The department claimed that such notice was sent to the petitioner by email, but the mail address as urged by the respondent was not the correct address.The notice forwarded by the respondent was not to the petitioner’s registration portal email.
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The Division Bench of Bombay High Court comprising Justice G.S Kulkarni and Justice Somasekharan observed that there appears to be an erroneous communication of notice that has resulted into the impugned order being passed by the respondent without hearing the petitioner, and no opportunity of personal hearing was granted to the petitioner before rejecting the application.
Hence in the interest of justice the court ordered the impugned order to be quashed and set aside, while remanding the proceedings of the assessing officer. And the petitioner is given a fresh opportunity to reply to the Show Cause Notice within 2 weeks from the date of order and after the reply respondent shall grant an opportunity of hearing to the petitioner, of which intimation must be given at least 7 days in advance by forwarding mail to both email addresses.
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After granting the petitioner an opportunity of being heard, an appropriate order in accordance with law will be passed against the petitioner. All contention of the parties on the pending applications were kept open.
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