The case number ITA 730/DEL/2019 involves the appellant, Faridabad Menopause Society, Faridabad, and the respondent, CIT (Exemptions), Chandigarh. This case pertains to the application for registration under section 12AA of the Income Tax Act, 1961. The appeal was filed on January 31, 2019, and the final tribunal order was issued on July 18, 2023.
This appeal was filed by the Faridabad Menopause Society against the order of the Ld. CIT(E), Chandigarh, dated August 30, 2018. The primary issue in this appeal revolves around the dismissal of the application seeking registration under section 12AA of the Income Tax Act, 1961, due to the omission of considering the reply filed by the assessee.
The appellant contended that the Ld. CIT(E) did not consider the reply submitted via email on August 30, 2018, in response to a query letter issued by the Ld. CIT(E) on August 14, 2018. This oversight led to the dismissal of the application for registration under section 12AA.
When the appeal was taken up for hearing, neither the assessee nor any authorized representative or counsel appeared, and no adjournment application was filed. However, the notice of the hearing had been served on the assessee through the Income Tax Officer (Exemptions), Faridabad, and the service report was kept on record.
The Ld. DR, Sh. T. James Singson, in all fairness, agreed with the contention raised by the assessee. He acknowledged that the reply and documentary evidence submitted by the assessee were omitted from consideration by the Ld. CIT(E) while passing the impugned order. The Ld. DR also stated that the department had no serious objection if the matter was restored to the file of the Ld. CIT(E) for a fresh adjudication of the application for registration under section 12AA.
The tribunal noted that the reply to the query of the Ld. CIT(E) was indeed submitted by the assessee on August 14, 2018, enclosing the certificate of registration under the Rules and regulations listed by the government bodies. However, this reply and the documentary evidence were not considered by the Ld. CIT(E) while passing the impugned order.
In view of the above, the tribunal found it just and proper to restore the matter to the file of the Ld. CIT(E) for a fresh adjudication of the application for registration under section 12AA of the Income Tax Act, 1961. Accordingly, the appeal of the assessee was allowed for statistical purposes.
In summary, the tribunal’s decision in Faridabad Menopause Society vs CIT (Exemptions) highlights the importance of considering all relevant submissions and documentary evidence before passing an order. The case was remitted back to the Ld. CIT(E) for a fresh adjudication, ensuring that the principles of natural justice are upheld.
This case serves as a significant reference for non-profit organizations and tax professionals dealing with applications for registration under section 12AA, emphasizing the necessity of a thorough and fair consideration of all submissions made by the applicant.
Faridabad Menopause Society vs CIT (Exemptions): Registration u/s 12AA Appeal
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