The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the case for de novo consideration after the Commissioner of Income Tax(Exemption) [ CIT(E) ] rejected the Society’s registration, without considering its submitted replies.
Jain Mahasabha ,appellant-assessee,was registered under the Society Registration Act, 1860 on 14.08.1989 and claimed to be working for the poor and needy, as per its Memorandum of Association. The assessee applied for provisional registration under Sections 12A and 80G of the Act on 31.03.2023 in Form 10A, and was granted provisional registration on 07.04.2023 in Form 10AC for the period from Assessment Year(AY) 2023-24 to 2025-26.
The assessee applied for regular registration on 27.09.2023 and 30.09.2023, within six months of starting their activities. However, the CIT(E) denied the registration and canceled the provisional one, citing doubts over the genuineness of the activities.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The assessee appealed before the tribunal aggrieved by the order.
The tribunal found that the assessee submitted its replies for regular registration on 20.03.2024 and 28.03.2024. However, the CIT(E) canceled the provisional registration and denied the final registration on 29.03.2024, the day after receiving the final reply. The assessee argued that the decision was made without considering the replies, which violated natural justice.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The two member bench comprising Sudhir Pareek (Judicial Member) and Pradip Kumar Kedia(Accountant Member) decided to set aside the orders and remand the case to the CIT(E) for a fresh review, ensuring the applicant is given a proper chance to present its case. No separate order to reinstate provisional registration was required. The CIT(E) was directed to pass a reasoned order based on the assessee’s submissions and documents.
In short,the appeal filed by the assessee was allowed for statistical purposes.
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