Case Law Details
Antar Foundation Vs ITO (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi bench has granted Antar Foundation another opportunity to submit documents and information to the Commissioner of Income Tax (Exemptions) [CIT(E)] for its Section 12A registration. The Tribunal’s decision, pronounced on June 27, 2025, came after the assessee argued that notices from the CIT(E) were not effectively communicated to its top management, leading to the rejection of its registration application.
Antar Foundation had appealed against the CIT(E)’s order dated October 17, 2024, which denied its application for registration under Section 12A of the Income Tax Act, 1961. The CIT(E) had rejected the application, as well as cancelled the provisional registration granted on June 22, 2022, primarily because the assessee failed to respond to three opportunities provided to furnish necessary details and information.
During the ITAT proceedings, despite no appearance from the assessee’s side, the Tribunal proceeded to hear the Departmental Representative (DR) and review the CIT(E)’s order. In its grounds of appeal, Antar Foundation contended that during the period of June to September 2024, its operational center was located in Uttar Pradesh, which resulted in correspondence not being received at its registered office. Crucially, the assessee claimed that the registered email address was managed solely by the accounts department, who initially failed to bring the CIT(E)’s notices to the attention of the management. By the time the management became aware of the issue, the CIT(E)’s order denying registration had already been passed.
Considering these submissions and the totality of the facts, the ITAT concluded that Antar Foundation should be provided with one more opportunity to file the required information before the CIT(E). The Tribunal emphasized the importance of ensuring that the assessee has an adequate chance to present its case, especially when communication breakdowns are cited as the reason for non-compliance.
Accordingly, the ITAT set aside the appeal and remanded the matter back to the CIT(E). The CIT(E) is now directed to decide afresh on Antar Foundation’s application for Section 12A registration, ensuring that the assessee is provided with a proper opportunity of being heard. This ruling, allowing the appeal for statistical purposes, aims to facilitate a fair and complete adjudication of the registration application, addressing the communication issues that led to its initial rejection.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the assessee against the order of the Ld. CIT (Exemptions), Delhi dated 17.10.2024 in denying the registration u/s 12A of the Act.
2. In spite of issue of notice none appeared on behalf of the assessee nor any adjournment was sought. We dispose of this appeal on hearing the Ld. DR on merits.
3. We have heard the Ld. DR, perused the orders of the Ld. CIT(Exemptions), Delhi.
4. In the grounds of appeal, the assessee contended that during the months of June to September, 2024 the Centre was running in Uttar Pradesh and the correspondence was not received at the Registered Office. It was further contended that the registered email was only handle by the persons in accounts department but they did not bring to the notice of the management initially. When the management came to know about the issue of notices by the Ld. CIT(E) it was too late by then the order of the Ld. CIT(E) was passed denying registration u/s 12A of the Act. The assessee therefore contends that an opportunity may be given for submission of details before the Ld. CIT(E) and to put forth its case for registration u/s 12A of the Act.
5. On perusal of the order of the Ld. CIT(E), we noticed that the application filed in Form 10AB seeking for registration u/s 12A(1)(ac)(iii) was rejected and the provisional registration granted vide order dated 22.06.2022 was also cancelled for the reason that the assessee has failed to file details/information called for by the Ld. CIT(E). On perusal of the Ld. CIT(E), we noticed that though the Ld. CIT(E) provided three opportunities for furnishing the necessary information the assessee did not respond to the notices. It is the contention of the assessee that the email address was handled by the accounts department who did not bring to the notice of the management about the notices issued by the Ld.CIT(E) providing opportunity.
6. Considering the submission of the assessee and taking the totality of facts into consideration we are of the view that assessee may be provided one more opportunity to file the necessary and requisite information before the Ld. CIT(E). Accordingly, we set aside this appeal to the Ld. CIT(E) who shall decided afresh the application for registration u/s 12A of the Act after providing adequate opportunity of being heard to the assessee.
7. In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 27.06.2025
Author Bio
