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Facts
The assessee filed applications for approval under Section 80G(5)(iii) and registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The applications were rejected by the Ld. CIT(E) due to the applicant's failure to submit required details and a corrupted reply. The applicant alleged a denial of natural justice.
Held
The Tribunal set aside the orders of the Ld. CIT(E) and restored the matter for fresh decision, directing that the applicant be given a fair opportunity to file documents and be heard. The appeals were allowed for statistical purposes.
Key Issues
Whether the rejection of the applications by the Ld. CIT(E) without affording adequate opportunity and considering the corrupted reply violated principles of natural justice.
Sections Cited
80G(5)(iii), 12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI
Before: SHRI SHAMIM YAHYA & SHRI VIMAL KUMAR
PER VIMAL KUMAR, JUDICIAL MEMBER:
The appeals filed by appellant/assessee are against the separate orders dated 17.12.2024 of Learned Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as ‘Ld. CIT(E)’] rejecting applications in Form 10AB for grant of approval under sections 80G(5)(iii) and registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Brief facts of the case are that on 28.06.2024, applicant- assessee submitted applications in Form 10AB for approval under Section 80G(5)(iii) and registration under Section 12A(1)(ac)(iii) of the Act. The appellant/assessee was issued notice dated 15.07.2024 to furnish certain details. The applicant failed to submit required details. On 7.11.2024, applicant filed reply which was corrupted and not downloadable. The applicant was provided final opportunity vide notices dated 12.11.2024 and 9.12.2024. Ld. CIT(E) vide orders dated 17.12.2024 rejected both the applications.
Being aggrieved, appellant/applicant filed present appeal.
Learned Authorised Representative for the appellant/applicant submitted that Ld. CIT(E) failed to give adequate opportunity of being to the applicant to submit documents. The documents submitted through online process were rejected in violation of principles of natural justice.
Learned Departmental Representative for the Department of Revenue submitted that applicant had failed to file relevant documents.
From examination of record in light of aforesaid rival contentions, it is crystal clear that learned CIT(E) rejected applications by observing non-filing of evidence/submissions on charitable activities. The applicant had filed reply on 07.11.2024 which was corrupted and not downloadable.
In view of above material facts, in the interest of substantial justice, impugned orders dated 17.12.2024 of Learned CIT(E) are set aside. The matter is restored to the files of the Learned CIT(E) for fresh decision in accordance with law. That applicant shall be afforded fair opportunity to file documents and hearing.