Registration u/s 12 of Income Tax Act cannot be Denied without Providing Reasonable Opportunity of being Heard to Assessee: ITAT [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the registration under Section 12 of the Income Tax Act 1961 could not be denied without providing a reasonable opportunity of being heard to the assessee.

The Appellant, Kalyan Riverside Charitable Foundation, by filling online application on dated 31st March, 2022 in form no. 10AB sought registration under Section 12A (1)(AC)(iii) of the Income Tax Act. The same was taken into consideration by the Commissioner and vide notice issued through ITBA portal on 19th July, 2022, requested the Appellant to upload certain other information/clarification by 3rd Aug, 2022 which remained un-complied with.

Thereafter, vide notice dated 18th Sep, 2022 another opportunity was given to the Appellant, whereby the Appellant was requested to submit its compliance by 23rd Sep, 2022. In the said notice, it was also specifically informed by the Commissioner that in the event of failure to comply by due date, the matter would be decided on the basis of material available on record. The said notice also remained un-complied with.

As the Appellant had not given any specific details, as to what actual activities being carried out by it and no credible evidence was submitted in support of its claim, though, specific opportunity of being heard was given, but failed to avail the same, the Commissioner therefore rejected the aforesaid application of the Appellant.

Madhumalti Ghosh, appeared on behalf of the revenue.

The two- Member Bench of B R Baskaran, (Accountant Member) and N. K. Choudhry, (Judicial Member) observed that the Commissioner before deciding the application filed by the Appellant, though given appropriate opportunity to the appellant to substantiate its case, however failed to decide the same in the absence of supported material and/ or non-production and non- explaining of documents and activities carried out by the appellant.

The Bench allowed the appeal filed by the assessee remanding the instant case to the file of the Commissioner for denovo adjudication, affording a reasonable opportunity of being heard to the Appellant.

To Read the full text of the Order CLICK HERE

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