BABA BANDA BAHADUR JAN SEWA SAMITI,HISAR vs. COMMISSIONER OF INCOME TAX (EXEMPTION), CHANDIGARH

The assessee has filed appeals against the order of the Learned Commissioner of Income Tax (Exemption), Delhi [“Ld. CIT(E)”, for short] dated 26.09.2024 & 11.12.2024 for the AY 2024-25.

At the time of hearing, ld. AR for the assessee brought to our notice that the ld. CIT (E) has rejected the application for registration u/s 12AB of the Income-tax Act, 1961 (for short ‘the Act’) without giving any opportunity of being heard to the assessee and is against the principles of natural justice inasmuch as the notices stated to be issued on 09.08.2024, 22.08.2024 and 30.08.2024 to the assessee were merely uploaded on the income tax portal, but were not delivered by post or transmitted through electronic mail or electronic mail message at the address of the assessee and hence, these notices were not validly served on the assessee. Accordingly, He prayed that this issue may be remitted back to the ld. CIT(E) with the prayer to give an opportunity of being heard to the assessee. Similarly, the application filed for registration u/s 80G was also rejected in absence of registration u/s 12AB of the Act.

On the other hand, ld. DR for the Revenue objected to the submissions of the ld. counsel for the assessee and relied on the order of Ld. CIT (E).

Considered the rival submissions and material placed on record. We observed that the assessee submitted the ld. CIT (E) rejected the application for registration u/s 12AB of the Act without giving any opportunity of being heard to the assessee. In our considered view and in the interest of justice, assessee should be given one more opportunity of being heard on merit. Therefore, we direct ld. CIT (E) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. We also direct assessee to make proper submissions and appear before the ld.CIT (E) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.

Similarly, the registration u/s 80G was also rejected on the same ground. The assessee is in appeal before us by filing separate appeals vide ITA No.238/Del/2025. We remit this issue also back to the file of ld. CIT (E) in the interest of justice. Both the issues under consideration may be decided as per law.

In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on this 13TH day of May, 2025 after the conclusion of the hearing.