Inadequate Opportunity of Hearing in Alleged Form 10AB Delayed Filing: ITAT Restores Matter for Reconsideration [Read Order]
The Tribunal set aside the order of the CIT(E) and remanded the matter to provide one more opportunity to explain the delayed filing of Form 10AB, as the assessee was not given adequate opportunity to present its case.
![Inadequate Opportunity of Hearing in Alleged Form 10AB Delayed Filing: ITAT Restores Matter for Reconsideration [Read Order]](https://images.taxscan.in/h-upload/2025/07/07/2060636-form-10ab-taxscan.webp "Inadequate Opportunity of Hearing in Alleged Form 10AB Delayed Filing: ITAT Restores Matter for Reconsideration [Read Order]")
The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) restored the appeal to the Commissioner of Income Tax (Exemptions) [CIT(E)] with a direction to reconsider the application for registration under Section 12AB of the Income Tax Act, 1961, after providing the assessee a reasonable opportunity of hearing. The Tewhima Permaculture Foundation (assessee) faced proceedings for...
The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) restored the appeal to the Commissioner of Income Tax (Exemptions) [CIT(E)] with a direction to reconsider the application for registration under Section 12AB of the Income Tax Act, 1961, after providing the assessee a reasonable opportunity of hearing.
The Tewhima Permaculture Foundation (assessee) faced proceedings for the Assessment Year (AY) 2024-25 concerning its application for regular registration under Form 10AB. The CIT(E) rejected the application, citing that it was submitted beyond the prescribed time limit under the Act. Aggrieved by the CIT(E)’ order, the assessee filed an appeal before the ITAT.
The assessee’s counsel argued that the Foundation was under the bonafide belief that Form 10AB could be filed within six months from the expiry of its provisional registration, which was granted and valid until AY 2025-26.
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The counsel further contended that the CIT(E) dismissed the application without providing the assessee a proper opportunity to explain the circumstances surrounding the delayed filing.
On the other hand, the counsel for the Revenue contended that there was no provision under the act to rectify or condone the mistakes committed in filing forms for registration by the CIT(E).
The counsel also submitted that since the assessee has filed form 10AB belatedly, there was no provision for the CIT(E) to rectify the form and therefore the CIT(E) has rightly rejected the application filed by the assessee.
The two-member bench, comprising Shri Manjunatha G. (Accountant Member) and Shri Ravish Sood (Judicial Member) observed that the CIT(E) rejected the application without granting the assessee a reasonable opportunity to explain its case, particularly since the application was filed before the six-month period from the expiry of the provisional registration.
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The Tribunal held that the CIT(E) should have provided the assessee an opportunity to present its case before dismissing the application. It set aside the CIT(E)’s order and remanded the matter back to the CIT(E) for reconsideration.
The bench directed the CIT(E) to provide the assessee one more opportunity of hearing and to evaluate the application on its merits. It also advised the assessee to explore all available options under the Act, including filing a petition for condonation of delay, if applicable.
The appeal of the assessee was allowed for statistical purposes.
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