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Facts
The assessee filed an appeal against the CIT(Exemption)'s order dated 27.11.2024, which rejected their application for approval under Section 80G(5) of the Income Tax Act. The CIT(Exemption) cited the lack of Section 12A registration as a prerequisite. An earlier appeal concerning Section 12A registration had been remanded back to the CIT(Exemption).
Held
The Tribunal held that since the related Section 12A application was already remanded, the present appeal regarding Section 80G(5) approval should also be remanded to the CIT(Exemption) for proper consideration. The assessee should be granted an opportunity of hearing as per natural justice.
Key Issues
Whether the CIT(Exemption) erred in rejecting the Section 80G(5) application without considering the pending appeal for Section 12A registration. Whether an opportunity of hearing was denied to the appellant.
Sections Cited
80G(5), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & Ms. SUCHITRA KAMBLE
PER SUCHITRA KAMBLE, JUDICIAL MEMBER:
This appeal is filed by the Assessee against order dated 27.11.2024, passed by the CIT(E), Ahmedabad.
The assessee has raised the following grounds of appeal:
“1. That on facts, and in law, the learned CIT(Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing to the appellant.
2. That on facts, and in law, the learned CIT(Exemption) has grievously erred in rejecting the application for approval u/s.80G(5) of the Act.
That on facts, and in law, it ought to be considered that the appeal of the appellant against rejection of application u/s.12A of the Act is pending before Hon’ble ITAT Bench “A” as on today bearing ITA No.1771/Ahd/2024.
4. The appellant craves liberty to add, alter, amend any ground of appeal.
Jai Bhagwati Charitable Trust vs. CIT(E) Page 2 of 3 3. The appellant Trust has filed Form No.10A in respect of the application for approval under Sub-clause (B) of Clause (iii) of First Proviso to Sub-section (5) of Section 80G of the Income Tax Act, 1961. The CIT(Exemption) rejected the appellant Trust’s application stating therein that the registration under Section 12A of the Act is pre-requisite for grant of approval under Section 80G of the Act which in absence of valid registration certificate the approval under Section 80G of the Act could not be granted.
Being aggrieved by the rejection, the appellant Trust filed appeal before us.
The Ld. AR submitted that the appeal of the appellant Trust against rejection of application under Section 12A of the Act is allowed by the Tribunal in thereby remanding back the matter to the file of the CIT(Exemption).
The Ld. DR relied upon the order of the CIT(Exemption).
We have heard both the parties and perused all the relevant material available on record. Since the Tribunal in wherein the Tribunal has remanded back the matter to the file of the CIT(Exemption)regarding the consideration of application under Section 12A, the present appeal is in respect of Section 80G(5) approval and hence the same also needs to be remanded back to the file of the CIT(Exemption) for proper consideration. The appellant Trust be given opportunity of hearing by following the principles of natural justice.
In the result, appeal of the appellant Trust is partly allowed for statistical purpose.
Order pronounced in the open Court on this 19th March, 2025.