Loading judgment…
Facts
The Assessee filed applications for registration u/s 12AA and 80G of the Income Tax Act, 1961. The Ld. CIT(E) rejected these applications ex-parte without verifying documents or providing an opportunity to the Assessee.
Held
The Tribunal held that the Ld. CIT(E) should have provided an opportunity to the Assessee to produce documents and decide the application on merit. The impugned orders were set aside and the matter was remanded.
Key Issues
Whether the Ld. CIT(E) erred in rejecting the applications for registration without providing adequate opportunity to the Assessee?
Sections Cited
12AA, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI
Before: SHRI M. BALAGANESH & SH. YOGESH KUMAR U.S.
Assessee by Sh. Ved Mittal, CA Revenue by Ms. Pooja Swaroop CIT(DR) Date of Hearing 14/05/2025 Date of Pronouncement 14/05/2025 ORDER PER YOGESH KUMAR, U.S. JM: These two appeals are filed by the Assessee against the order of the Commissioner of Income Tax (Exemption)-, Delhi (‘Ld. CIT(E)’ for short) dated 27/12/2024,wherein the applications filed by the Assessee for grant of registration u/s 12AA and 80G of the Income Tax Act, 1961 ('Act' for short) were rejected.
The Ld. Counsel for the Assessee submitted that the orders impugned have been passed ex-parte, wherein Ld. CIT(E)has not verified the documents produced by the Appellant and without providing opportunity to the appellant to produce further documents and and to make submissions, the orders impugned has been passed. Thus, sought for allowing the Appeal.
The Ld. Department's Representative vehemently submitted that the appellant has failed to substantiate the claim in support of the applications filed by the Appellant. By relying on the orders of the Lower Authority, sought for dismissal of the Appeals.
We have heard the parties and perused the material available on record. It can be seen from the order impugned, the Ld. CIT(E) has rejected the application for want of documents to substantiate the claim of the Appellant. Considering the fact that the Assessee is claimed to be conducting charitable activities, should have provided opportunity to the appellant to produce the documents to substantiate its claim and the Ld. CIT(E) thereafter should have decided the application on its merit. Thus, we set aside the impugned orders of the Ld. CIT(E) and remand the matter to the file of Ld. CIT(E) with a direction to decide the applications afresh after providing opportunity of being heard to the Appellant. The Appellant is also at liberty to cure/comply any technical objections if any in the applications filed by the Appellant and also produce further documents in support of its claim.
In the result, the appeals filed by the Assessee are partly allowed for statistical purpose.
Order pronounced in the open court on 14th May , 2025