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Facts
The assessee filed applications for registration under Section 12AB and 80G of the Act. The CIT(E) rejected these applications after the AO recommended against approval, without confronting the assessee with the remand report or providing a hearing.
Held
The Tribunal held that the CIT(E) failed to grant an opportunity of being heard to the assessee and did not confront the assessee with the AO's remand report, which violates principles of natural justice. Therefore, the issue was set aside for fresh adjudication.
Key Issues
Whether the CIT(E) correctly rejected the registration application without providing the assessee with an opportunity of being heard and without confronting the remand report from the AO.
Sections Cited
12AB, 80G
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Income Tax Appellate Tribunal, ‘A’ BENCH, BANGALORE
Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K
PER WASEEM AHMED, ACCOUNTANT MEMBER:
These appeals are filed by the assessee against the order passed by the ld. CIT(Exemption), Bangaluru vide separate order dated 20-03-2025 and 18-06-2025 respectively rejecting the registration application filed under section 12AB and 80G of the Act. an appeal filed by the assessee.
The only issue raised by the assessee is that the ld. CIT(E) erred in rejecting the application for registration u/s 12AB of the Act.
In the present case, the assessee has filed an application in Form 10AB dated 30/09/2024 for registration u/s 12AB of the Act. A remand report was called for by the ld. CIT(E) from the jurisdictional AO to verify the charitable activities of the assessee. Subsequently, the jurisdictional Assessing Officer along with the Range head after considering the submission filed by the assessee has not recommended for approval of the registration application made u/s 12AB of the Act. In view of the report furnished by the AO/Range, the ld. CIT(E) vide order dated 20/03/2025 dismissed the registration application filed u/s 12AB of the Act by the assessee.
Being aggrieved by the order of ld. CIT(E), the assessee is in appeal before us.
The ld. AR before us filed a paper book running from pages 1 to 191 and contended that the ld. CIT(E) has rejected the application for registration u/s 12AB of the Act without complying the provisions specified under clause (ii)(b) of subs-section 1 to sec. 12AB of the Act. Furthermore, the AR contended that the remand report called from the jurisdictional AO was not confronted to the assessee. Moreover, the ld. CIT(E) was mandated to grant an opportunity of being heard to the assessee before rejecting the registration application but such opportunity has not been provided to the assessee.
In view of the above, the ld. AR prayed before us to set aside the issue to the ld. CIT(E) for fresh adjudication as per the provisions of law.
On the other hand, the ld. DR did not raise any objection if the matter is set aside to the file of ld. CIT(E) for fresh adjudication as per the provisions of law.
We have heard the rival contentions of both the parties and perused the materials available on record. It is an admitted position that the ld. CIT(E) is mandated to grant an opportunity of being heard to the assessee before rejecting the application for registration u/s 12AB of the Act. However, in the case on hand, the ld. CIT(E) has not complied such provision of law.
8.1 In addition to the above, it is also seen that the registration application filed by the assessee u/s 12AB of the Act was rejected by the ld. CIT(E) based on the recommendation made by the jurisdictional AO. However, such report from the jurisdictional AO was not confronted to the assessee, which is against the principles of natural justice. In view of the above and to meet the principle of natural justice, we are inclined to set aside the issue to the ld. CIT(E) for fresh adjudication as per the provisions of law after affording necessary opportunities of being heard to the assessee. Hence, the ground of appeal of the assessee is hereby allowed for statistical purposes.
In the result, the appeal filed by the assessee is hereby allowed for statistical purposes.
Coming to ITA No. 1619/Bang/2025
The facts of the case on hand are identical to the facts of the case discussed above, therefore, respectfully following the same, we are inclined to set aside the issue to the ld. CIT(E) for fresh adjudication as per the provisions of law after affording necessary opportunities of being heard to the assessee. Hence, the ground of appeal of the assessee is admittedly allowed for statistical purposes.
In the result, the appeal filed by the assessee is hereby allowed for statistical purposes.
In the combined result, both the appeals filed by the assessee are hereby allowed for statistical purposes.
Order pronounced in court on 4th day of November, 2025