THE MUSEUM SOCIETY OF BOMBAY,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI

The learned counsel for the assessee submitted that the learned CIT(E) rejected the applications without affording an effective opportunity of hearing. It was submitted that only one notice seeking certain details was issued during the course of the proceedings and no specific show-cause notice proposing rejection of the applications was ever issued. The assessee could not respond to the said notice for the reasons explained before us and, consequently, the applications came to be rejected. It was, therefore, prayed that the matters may be restored to the file of the learned CIT(E) for fresh adjudication after granting one effective opportunity of hearing. The learned Departmental Representative fairly left the issue to the discretion of the Bench.

We have considered the rival submissions and perused the material available on record. From the facts brought before us, it appears that the impugned orders have been passed after issuance of only one notice seeking information and without issuing any specific show-cause notice before rejecting the applications. In our considered opinion, before rejecting an application seeking registration under section 12AB or approval under section 80G, the applicant should be

Accordingly, we set aside the impugned orders and restore both the matters to the file of the learned CIT(E) with a direction to decide the applications afresh in accordance with law after affording due and effective opportunity of hearing to the assessee. The assessee is also directed to extend full cooperation in the proceedings and furnish all the requisite documents and information as may be called for by the learned CIT(E).

In the result, both the appeals of the assessee are allowed for statistical purposes.