Accounts Dept fails to Communicate CIT(E) Notices to Top Management: ITAT ITAT grants one more Opportunity to Submit Documents [Read Order]
CIT(E) directed to decide the registration application afresh after giving the assessee full opportunity to submit required documents, holding that denying a bona fide charitable trust a hearing due to internal lapses breaches natural justice.
![Accounts Dept fails to Communicate CIT(E) Notices to Top Management: ITAT ITAT grants one more Opportunity to Submit Documents [Read Order]](https://images.taxscan.in/h-upload/2025/07/01/2057448-cite-notices.webp "Accounts Dept fails to Communicate CIT(E) Notices to Top Management: ITAT ITAT grants one more Opportunity to Submit Documents [Read Order]")
The Delhi Bench of the Income Tax Appellate Tribunal ( ITAT ) has set aside an order denying registration under Section 12A and remanded the matter back to the CIT(Exemptions) for fresh adjudication, granting the assessee a final opportunity to furnish the required details.
The appeal was filed by Antar Foundation, when its application for registration under Section 12A was rejected and its provisional registration granted in June 2022 was cancelled by the CIT(E) after repeated notices for additional information went unanswered.
The Revenue argued that despite issuing multiple notices, the assessee failed to comply with the information requests and therefore the cancellation of registration was justified.
Step by Step Guidance for Tax Audit & E-filing, Click Here
However, the assessee contended that due to the Centre’s operations being conducted at a location in Uttar Pradesh during the relevant period, critical correspondence sent to its registered office in Delhi went unnoticed.
Further, the registered email used for official communication with the tax department was handled solely by the accounts department staff, who did not inform the top management about the notices in time. By the time the oversight came to light, the CIT(E) had already passed the adverse order denying registration.
The Tribunal determined that the assessee was entitled to another opportunity to make its case based on the merits, considering the circumstances.
The bench of M. Balaganesh (Accountant member) and C.N. Prasad (Judicial member) instructed the CIT(E) to decide the registration application again after providing the assessee with a sufficient opportunity to submit all necessary documents and explanations, pointing out that denying a legitimate charitable organization a chance to defend itself because of an internal error would go against the principles of natural justice.
Accordingly the appeal was allowed.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
