SHRI GURU AMARDASS CHARITABLE TRUST ,CHANDIGARH vs. COMMISSIONER OF INCOME TAX, EXEMPTIONS, CHANDIGARH , CHANDIGARH

PER LALIET KUMAR, JM

Both the appeals have been filed by the assessee against

the separate orders of the Commissioner of Income Tax

(Exemptions) Chandigarh [in short ‘the CIT (E)’] dated

the application for registration u/s 12AB of the Income Tax Act,

1961 and also application for approval u/s 80G of the Act

without affording effective and sufficient opportunity of being

heard and without considering the material available on record.

by the ld. counsel for the assessee that the assessee was ex-

parte before the ld.CIT (Exemptions) and therefore, the assessee

deserves to be given one more opportunity. However, despite the fact that the ld.CIT (Exemptions) is having co-terminus powers,

the ld.CIT (Exemption) has not examined the issues on merit.

Therefore, the ld. counsel for the assessee prays that one more

opportunity may kindly be granted to the assessee to substantiate the claims made in the grounds of appeal.

through the impugned order passed by the learned CIT

(Exemptions). Admittedly, the assessee's application under section 12AB of the Act has been rejected primarily for non-

furnishing of the information sought by the learned CIT

(Exemptions). The record reveals that the first show cause notice

was issued on 04.02.2026, fixing the hearing on 11.02.2026. The assessee sought an adjournment on 10.02.2026, which was granted, and another notice dated 11.02.2026 required

compliance by 20.02.2026. Thereafter, the impugned order came

to be passed on 05.03.2026. 6. From the nature of the questionnaire reproduced in the impugned order, it is evident that the learned CIT (Exemptions)

had called upon the assessee to furnish extensive documentary

evidence relating to its charitable activities, acquisition and sale

of immovable properties, audited financial statements, FCRA

records, construction activities, expenditure details and several

other supporting documents. In our considered view, although

notices were admittedly issued, the opportunity granted to the assessee cannot be said to be an effective opportunity having

regard to the voluminous nature of information required to be compiled and furnished.It is a settled proposition of law that an order having civil consequences should ordinarily be passed only after affording an effective and meaningful opportunity of hearing. The principles of natural justice are not empty

formalities but are intended to ensure that a party gets a fair

and reasonable opportunity to present its case before any adverse decision is taken. Considering the totality of facts and circumstances, and without expressing any opinion on the merits of the claim of the assessee, we deem it appropriate, in the interest of substantial justice, to set aside the impugned

order and restore the matter to the file of the learned CIT

(Exemptions).

all such documents and evidences as may be considered

necessary in support of its application, examine the same in accordance with law and thereafter pass a fresh speaking order

after duly considering the submissions and evidences placed on record. The assessee is also directed to extend full cooperation

in the proceedings and shall not seek unnecessary

adjournments. Accordingly, the impugned order is set aside and the matter is remanded to the file of the learned CIT (Exemptions) for fresh adjudication in accordance with law after

providing adequate opportunity of hearing to the assessee.

Representative (AR) submitted that the impugned order rejecting

the assessee's application for approval under section 80G of the Income-tax Act, 1961, has been passed solely on the basis that the assessee's application for registration under section 12AB

stood rejected by the learned CIT (Exemptions). It was contended

that once the very foundation, namely the rejection of registration under section 12AB, has been restored by this Tribunal to the file of the learned CIT (Exemptions) for fresh

adjudication, the consequential rejection of approval under section 80G also cannot survive independently. It was, therefore,

prayed that the matter relating to approval under section 80G may also be restored to the file of the learned CIT (Exemptions)

for fresh adjudication.

relied upon the impugned order. However, he fairly submitted

that if the issue relating to registration under section 12AB has been restored to the file of the learned CIT (Exemptions), the consequential issue relating to approval under section 80G may also be decided afresh in accordance with law.

submissions. We find that the rejection of the assessee's

application for approval under section 80G is founded upon the rejection of its application for registration under section 12AB.

Since, while deciding the connected appeal, we have already set

aside the order passed under section 12AB and restored the matter to the file of the learned CIT (Exemptions) for fresh

adjudication, the very basis on which the approval under section 80G has been rejected no longer survives.

aside the impugned order rejecting the application under section 80G and restore the matter to the file of the learned CIT

(Exemptions) for fresh adjudication. The learned CIT

(Exemptions) shall examine the assessee's eligibility for approval

under section 80G afresh after adjudicating the application

under section 12AB and thereafter pass a speaking order in accordance with law.

adequate and effective opportunity of hearing to the assessee,

permit it to place all relevant material on record, and decide the matter strictly in accordance with law after duly following the principles of natural justice.

for statistical purposes.

Order pronounced on 14.07.2026. (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER “Poonam”

आदेश की "ितिलिप अ"ेिषत/ Copy of the order forwarded to : अपीलाथ"/ The Appellant