Loading judgment…
Facts
The assessee, Maharishi Daya Nand Siksha Samiti, filed appeals against the orders of the Ld. CIT(A) rejecting their applications for registration under Section 12AB and 80G. The CIT(A) had rejected the applications based on the observation that the society's objectives did not establish running schools and had not provided a reasonable opportunity of being heard.
Held
The Tribunal found that the Ld. CIT(E) had relied on a limited part of the society's memorandum, not considering all objectives. The Tribunal held that it was an appropriate case to give the assessee an opportunity to submit relevant documents and information.
Key Issues
Whether the Ld. CIT(E) erred in rejecting the registration application without a proper review of the society's objectives and without affording a reasonable opportunity of hearing.
Sections Cited
12AB, 80G, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘E’: NEW DELHI
Before: SHRI S RIFAUR RAHMAN & SHRI ANUBHAV SHARMA
ORDER PER ANUBHAV SHARMA, JM:
The aforecaptioned appeals have been preferred by the same Assessee against the different order of the Ld. Commissioner of Income -tax (Appeals)-Chandigarh, ([in short (Ld. CIT(A)] dated 21.03.2024 and 12.12.2024 for the Assessment Years 2023-24 and 2024-25.Since identical issues are involved in both the appeals, they are disposed of by this consolidated order for the sake of convenience and brevity.
1.1 The assessee has raised the following grounds in both appeals: ITA-3150/Del/2024 “1.That on the facts, circumstances and legal position of the case, the Worthy CIT,E) has erred in rejecting registration application moved u/s 12AB even when the appellant was eligible for the same.
2. That on law, facts and circumstances of the case, the order passed by Worthy CIT(E) deserves to be quashed since the same has been passed without affording reasonable opportunity of being heard to the appellant.
3. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.
.-3150-24 & 790-25 Maharishi Dayanand Siksha Samiti ITA-790/Del/2025
That on the facts, circumstances and legal position of the case, the Worthy CIT(E) has erred in rejecting registration application moved u/s 80G even when the appellant was eligible for the same.
2. That on law, facts and circumstances of the case, the order passed by Worthy CIT(E) deserves to be quashed since the same has been passed without affording reasonable opportunity of being heard to the appellant.
That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.
On hearing both the sides, we find that while passing the impugned order rejecting application u/s 12A of the Act, the ld. CIT(E) has observed that evidences do not establish running schools as one of the objectives of the Society. Ld. AR has drawn our attention to pages 13-14 of the PB to show the imparting education as per Education Policy is one of the objectives. While going through the impugned order we find that ld. CIT(E) has merely relied a limited part of memorandum of society describing only few of the objectives. Thus we consider it an appropriate case to give the assessee an opportunity to file the relevant .-3150-24 & 790-25 Maharishi Dayanand Siksha Samiti documents/information to the satisfaction of the ld.CIT(E). The issue is restored to the files of the ld.CIT(E) to call for relevant information on these documents and decide the application afresh as per law, after giving due opportunity of hearing to the assessee. The appeals are allowed, for statistical purposes only.