AKANSHA SOCIAL WELFARE AND HUMAN RESOURCE DEVELOPMENT (TRUST),AKOLA vs. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

These two appeals by the assessee arise out of the separate orders dated 31-03-2023 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) denying registration u/s.12AB and also approval u/s.80G(5) of the Income Tax Act, 1961.

At the outset, the ld. AR submitted that the assessee was granted provisional registration on 07-04-2022. Thereafter, the assessee had applied for final registration in Form No.10AB. The ld.CIT(E) issued the show cause notice dated 06-03-2023 calling for certain details. The assessee gave the reply furnishing all the relevant details. The assessee also submitted written submissions through e-mail along with some annexures attached. However, the order was passed rejecting the application for registration without considering or even making a mention of the same in the impugned order.

After hearing both the sides and perusing the relevant material on record, it is seen that the ld.CIT(E), in para No.2.3 has noted that “The notice was duly served on the assessee through e- portal and email. However, the assessee neither submitted explanation to the show cause notice till date nor availed the opportunity of being heard”. He, therefore, presumed that the assessee had nothing to say and eventually rejected the registration u/s.12AB of the Act. There is no mention whatsoever in the impugned order of the reply and the details furnished by the assessee in support of its claim. Considering the entirety of facts and circumstances of the case, we are of the opinion that it would be just and fair if the impugned order is set-aside and the matter is remitted to the file of the ld. CIT(E) with a direction to decide the appeal afresh after allowing a reasonable opportunity of hearing to the assessee. We order accordingly.

Admittedly, the facts and circumstances of the other appeal, against the grant of approval u/s 80G, are mutatis mutandis similar to those of the first appeal. Following the view taken hereinabove, we set aside the impugned order and remit the same to the ld. CIT(E) for deciding the appeal afresh after allowing a reasonable opportunity of hearing to the assessee.

In the result, both the appeals are allowed for statistical purposes. Order pronounced in the Open Court on 22nd June, 2023.