ITAT Restores 12A Registration Application Rejected Ex-Parte

The appeal was preferred against the order dated 22/10/2024 passed by the Commissioner (Exemptions) in dismissing the assessee’s application for regular registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The dismissal was ordered ex-parte since the trust failed to respond to hearing notices posted on the portal. 41 days’ delay in filing the appeal was explained by an affidavit of the trustee to the effect that the trust was not familiar with income-tax affairs or running the online portal. Given the short delay and the explanation filed on record, the Tribunal waived the delay.

It was contended that there was no intention of non-compliance and that the assessee had a meritorious case. The Departmental Representative relied on the order of the Commissioner (Exemptions).

Issue Raised: Whether ex-parte rejection of a 12A(1)(ac)(iii) registration application, without granting an effective opportunity of hearing, could be sustained in law.

ITAT’s Decision: The Tribunal observed that the interest of justice would be served if the assessee were granted a proper opportunity. Therefore, the impugned order was set aside and the matter restored to the file of the Commissioner (Exemptions) for fresh adjudication. Directions were issued to grant an adequate opportunity to present the case and to decide the application strictly in accordance with law within 90 days from receipt of the Tribunal’s order.

Thus, the appeal was treated as allowed for statistical purposes.

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