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Facts
The applicant-assessee filed an application for registration under Section 80G(5)(a) of the Income Tax Act, 1961, which was rejected by the Ld. CIT(E). This rejection occurred after the assessee allegedly failed to respond to multiple questionnaires and opportunities provided by the CIT(E).
Held
The Tribunal set aside the order of the Ld. CIT(E) rejecting the application, noting that the assessee claimed non-receipt of electronic notices and thus being denied adequate opportunity of hearing. The matter has been restored to the Ld. CIT(E) for a fresh decision in accordance with law, and the appeal is allowed for statistical purposes.
Key Issues
Whether the rejection of the assessee's application for 80G(5)(a) registration was valid, given the assessee's claim of not receiving electronic notices and thus being denied adequate opportunity of hearing by the CIT(E).
Sections Cited
80G(5), 80G(5)(a)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI
Before: SHRI VIMAL KUMAR & SHRI BRAJESH KUMAR SINGH
PER VIMAL KUMAR, JUDICIAL MEMBER:
The appeal filed by assessee is against the order dated 23.09.2022 of Learned Commissioner of Income Tax (Exemption), Chandigarh [hereinafter referred to as ‘Ld. CIT(E)’] rejecting application in Form 10AB for grant of registration under section 80G(5) of the Act, 1961 (hereinafter referred to as ‘the Act’).
Brief facts of the case are that applicant-assessee filed application in Form 10AB for registration under section 80G(5)(a) of the Act on 31.03.2022. The applicant was issued a questionnaire electronically on 22.08.2022 for examining the objects of trust/institution, genuineness of its activities and fulfilment of all conditions. The applicant neither made submission nor requested for adjournment. Another letter granting opportunity to the applicant was issued on 01.02.2022 for filing reply by 09.09.2022. Neither, any online reply was submitted nor any request for adjournment was received. Final opportunity was afforded to the applicant on 10.09.2022 and the matter was fixed on 14.09.2022. Once again, no reply was submitted. The Learned Commissioner of Income Tax (Exemption) vide order dated 23.09.2022 rejected the application.
Being aggrieved, appellant filed present appeal.
Learned Authorised Representative for the appellant/applicant submitted that Learned Commissioner of Income Tax(Exemption) passed the impugned orders without providing adequate opportunity of hearing in violation of norms of natural justice and fair play as electronic notices were not received by the applicant. 2
Learned Departmental Representative for the Department of Revenue submitted that applicant had failed to file relevant documents in support despite several opportunities.
From examination of record in light of aforesaid rival contentions, it is crystal clear that learned CIT(E) rejected application by observing non-filing of evidence/submissions in support of objects and activities of the applicant. The applicant has submitted that questionnaire and notices issued electronically were not received physically in violation of principles of natural justice.
In view of above material facts, in the interest of justice, impugned order dated 23.09.2022 of Learned CIT(E) is set aside. The matter is restored to the file of the Learned CIT(E) for fresh decision in accordance with law.