RAISING SHAKTI FOUNDATION,HYDERABAD vs. CIT(EXEMPTIONS), HYDERABAD

Facts

The assessee trust filed applications for registration under Section 12AB and Section 80G(5) of the Income-tax Act, 1961, which were rejected by the CIT(Exemptions), Hyderabad. The rejection orders, dated 20.11.2024, were issued after the assessee submitted only partial information and failed to fully respond to notices for requisite details, leading to a non-speaking and cryptic disposal of the applications.

Held

The Tribunal condoned a 26-day delay in filing the appeal, finding it to be for bona fide reasons. It held that the CIT(Exemptions) had mechanically rejected the applications without providing adequate reasons or analyzing the material placed on record, thereby violating principles of natural justice. Both orders of rejection for Section 12AB and Section 80G(5) registration were set aside, and the matters were remanded to the CIT(Exemptions) for fresh adjudication after affording the assessee trust a reasonable opportunity of being heard and passing a detailed, speaking order.

Key Issues

1. Whether the CIT(Exemptions) was justified in mechanically rejecting the assessee's applications for registration under Sections 12AB and 80G(5) without a speaking order or proper analysis of submitted material. 2. Whether the delay in filing the appeal should be condoned.