CANCER SOCIETY OF KASHMIR HOTEL JAWAHAR, LAL MANDI CHOWK JAWAHAR NAGAR, SRINAGAR ,SRINAGAR vs. INCOME TAX OFFICER WARD EXEMPTIONS CIRCLE 1 CHANDIGARH, CHANDIGARH

That the ex-parte order passed by the Id.CIT (Exemptions) Chandigarh dated 26.09.2024 vide DIN & Notice No. ITBA/EXM/F/EXM45/2024-25/1069116477(1) thereby refusing to grant registration to the appellant is against the facts of this case and is untenable under the law.

That no reasonable and proper opportunity of being heard was allowed by the worthy CIT(E) before passing the said ex-parte order. As such the order passed is bad in the eyes of law and the same is liable to be cancelled.

That the ld. CIT(e) Chandigarh has not applied her mind and has summarily rejected the application in Form No.10AB. the worthy CIT(E) did not appreciate that this society was very old and was a genuine society and was carrying on the activities in accordance with the objects of the society. As such the order passed by ld. CIT (E) is bad in the eyes of law and the same is liable to be cancelled.

That the CIT(E) has not pointed out any non-charitable activity of the society and summarily rejected the registration of the society which was allowed to the society earlier. The society came into existence since 28.05.1999 vide Registration No.421-RS/188 issued by the Registrar of Societies (J&K Government). Further the registration was granted earlier u/s 12AA by the CIT Amritsar vide order dated 05.11.1999. A copy of the registration certificate is made part & parcel of grounds of appeal. Further the provisional registration was also granted vide order dated 22/06/2022. As such the order passed is bad in the eyes of law and the same is liable to be cancelled.

That the ld. CIT (E) failed to appreciate that surplus was utilized for the purpose of charitable activities and the balance funds were accumulated as per the provisions of Section 11. As such the registration should have been allowed and there was no reason for cancelling the registration earlier allowed.

That any other ground of appeal which may be argued at the time of hearing of the appeal.”

In ITA 357/CHD/2026, the assessee has raised the following

That no reasonable and proper opportunity of being heard was allowed by the worthy CIT(E) before passing the said order. As such the order passed is bad in the eyes of law and the same is liable to be cancelled.

That the ld. CIT(e) Chandigarh has not applied her mind and has summarily rejected the application in Form No.10AB. the worthy CIT(E) did not appreciate that this society was very old and was a genuine society and was carrying on the activities in accordance with the objects of the society. As such the order passed by ld. CIT (E) is bad in the eyes of law and the same is liable to be cancelled.

That the CIT(E) has not pointed out any non-charitable activity of the society and summarily rejected the approval u/s 80G to the society which was allowed to the society earlier. The society came into existence since 28.05.1999 vide Registration No.421-RS/188 issued by the Registrar of Societies (J&K Government) and the approval was also granted u/s 80G vide order dated 23.06.2008 by CIT, Jammu. A copy of the certificate of approval granted u/s 80G is made part & parcel of grounds of appeal. Further the provisional registration was also granted vide order dated 22/06/2022. As such the order passed is bad in the eyes of law and the same is liable to be cancelled.

That the Id. CIT (E)simply after passing the ex-parte order thereby refusing to grant the registration vide order dated 26.09.2024 has summarily refused to grant the approval u/s 80G. As such the order passed is bad in the eyes of law and the same is liable to be cancelled.

That any other ground of appeal which may be argued at the time of hearing of the appeal.”

In both the appeals, the assessee is in appeal before the Tribunal against the separate orders passed by the Commissioner of Income Tax (Exemptions), Chandigarh [in short, the ld. CIT(E),’

Since common facts and identical issues are involved in both

In ITA No.356/CHD/2026, the assessee has challenged the action of the ld. CIT(E) in rejecting the application filed in Form No.10AB seeking registration u/s 12AB of the Act, inter alia, on the ground that the order has been passed ex-parte without affording effective opportunity of hearing and despite the fact that the assessee society was already enjoying registration earlier granted u/s 12AA vide order dated 05.11.1999 and provisional

At the outset, the ld. AR submitted that both the appeals filed

Briefly stated, the facts are that the assessee society, namely “Cancer Society of Kashmir”, had filed an application in Form No.10AB seeking registration u/s 12A(1)(ac)(iii) of the Act on 15.03.2024. The ld. CIT(E), during the course of proceedings, issued a detailed questionnaire dated 07.08.2024 calling upon the assessee to furnish various details and documents including copy of earlier registration, registration certificate of the society, trust deed/MoA, annual accounts, income tax returns, details of charitable activities, bank statements, documentary evidences regarding activities carried out by the society, affidavits and other supporting material necessary for examining the genuineness of activities of the institution and compliance with the statutory

The ld. CIT(E) has recorded that despite issuance of notices on 16.08.24, 22.08.2024, 28.08.2024, 30.08.2024 and 09.09.2024, the assessee neither furnished the requisite details nor sought adjournment and therefore the applications were decided ex-parte. The ld. CIT(E) further observed that in the absence of compliance, it is difficult to verify both the nature of objects and the genuineness of the activity. Consequently, the application filed by the assessee in Form No.10AB_ seeking registration u/s 12AB was rejected and the rejection was also made

During the course of hearing before us, the ld. AR submitted that the assessee society is an old charitable society, constituted on 28.05.1999, and registered with the Registrar of Societies, Jammu & Kashmir Government, vide Registration No. 421-RS/188. It was further submitted that the assessee had already been granted registration u/s 12AA by the CIT, Amritsar, vide order dated 05.11.1999, and approval u/s 80G had also earlier been granted by the CIT, Jammu, vide order dated 23.06.2008. It was submitted that provisional registration had also been granted on 22.06.2022, and therefore, rejection of the applications merely for non-compliance without examining the material facts and charitable objects of the society was unjustified.

The ld. AR submitted that, due to communication gaps and circumstances beyond the assessee's control, proper compliance could not be made before the ld. CIT(E). It was thus prayed that one more effective opportunity may be granted to the assessee to place all requisite evidences and documents before the ld. CIT(E).

On the other hand, the ld. DR strongly supported the impugned orders and submitted that the ld. CIT(E) had granted sufficient opportunities to the assessee through various notices and questionnaires. It was argued that, despite repeated opportunities, the assessee failed to furnish even the basic details necessary for verifying the genuineness of the activities; therefore, the ld. CIT(E) was justified in passing the impugned orders. However, the ld. DR fairly submitted that in case the Bench is inclined to restore the matter, appropriate directions may be issued to ensure proper compliance by the assessee.

We have heard the rival contentions and carefully perused the material available on record. We find that the ld. CIT(E) has rejected the application primarily on account of non-compliance by the assessee and the absence of documentary evidence necessary for verification of the genuineness of the activities of the society. It is also an admitted fact borne out from the grounds

However, considering the entirety of facts and circumstances of the case, particularly keeping in view that the assessee claims to be an old charitable institution already holding earlier registrations and approvals under the Act, we are of the considered opinion that the ends of substantial justice would be met if one more effective opportunity is granted to the assessee to substantiate its claim before the ld. CIT(E). The issue relating to grant of registration u/s 12AB and approval u/s 80G involves examination of objects, genuineness of activities and compliance with statutory requirements and therefore, in the interest of justice, the matter deserves fresh consideration after affording

Accordingly, the impugned orders passed by the ld. CIT(E) in both the appeals are set aside and both the matters are restored back to the file of the ld. CIT(E) with a direction to adjudicate the applications afresh in accordance with law after affording adequate opportunity of hearing to the assessee. The assessee is also directed to furnish all requisite documents, evidences, details of charitable activities, books of account, bank statements and other supporting material as may be called for by the ld. CIT(E). Needless to say, the ld. CIT(E) shall be at liberty to make such inquiries as deemed necessary for examining the genuineness of activities and eligibility of the assessee in accordance with the provisions of the Act.

Before parting, we may observe that the assessee shall fully cooperate in the fresh proceedings and shall not seek unnecessary adjournments. In case the assessee again fails to comply with the notices issued by the ld. CIT(E), the ld. CIT(E) shall be at liberty to decide the matter on the basis of material available on record

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