The Tax Publishers2021 TaxPub(DT) 0284 (Pune-Trib)

INCOME TAX ACT, 1961

Section 12AA

Where non-compliance as recorded in the order of CIT(E) cannot be attributed to deliberate or willful default of the assessee and it was due to compelling circumstances which were beyond reasonable control of the assessee and more particularly that their office was closed due to pandemic and they were not able to upload the requisite details/evidences in the department's portal, therefore, matter was remanded back to AO for adjudicating the matter while complying with the principles of natural justice.

Charitable trust - Registration under section 12AA denied - Requisite details/evidences as sought for, were not submitted by assessee -

Assessee had made an online application in Form 10A for approval of the Trust/Institution under section 12AA under category of Charitable Trust/Institution as per CBDT Notification No. S.O.2033 (E), dated 24-6-2020. Application was carefully perused and considered along with its annexures. Thereafter, a letter was issued through ITBA portal to assessee requesting to upload certain other information/clarification in order to process the application. However, assessee had not responded to the said notice. It was the case of assessee that an application for registration under section 12AA was rejected by CIT(E) since requisite details/evidences as sought for, were not submitted by the assessee. However, this was for the reason beyond the control of the assessee. Held: Non-compliance as recorded in the order of CIT(E) cannot be attributed to deliberate or willful default of the assessee and it was due to compelling circumstances which were beyond the reasonable control of the assessee. It was also observed that this was the period of pandemic being effective wherein most of offices remain closed and were not functioning. Assessee had acted bona-fide explaining reasons, more particularly that their office was closed and therefore, they were not able to upload requisite details/evidences in the department's portal. Therefore, one final opportunity should be given to assessee and in view thereof, matter was remanded back to AO for adjudicating the matter while complying with the principles of natural justice.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :



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