Loading judgment…
Facts
The Namah Foundation applied for registration under Section 12A(1)(ac)(iii), but the Commissioner of Income Tax (Exemption) rejected it. The rejection was based on the grounds that the assessee's activities had already commenced in FY 2021-22, and the application was not filed within the prescribed time limit. The assessee subsequently appealed this decision.
Held
The Tribunal, upholding principles of natural justice, accepted the appellant's prayer for another opportunity of hearing. Consequently, the matter of registration was restored to the file of the Commissioner of Income Tax (Exemption) for fresh adjudication, with directions for the assessee to plead and prove its case.
Key Issues
Whether the rejection of the assessee's application for registration under Section 12A(1)(ac)(iii) was justified, and whether a fresh opportunity for hearing should be granted based on principles of natural justice.
Sections Cited
12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application seeking registration u/s 12A(1)(ac)(iii) vide impugned order dated 05-03-2025 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Upon perusal of para-7 of impugned order, it could be seen that the application has been rejected on the ground that the activities of the assessee already commenced during FY 2021-22 and the present application was not filed within the prescribed time limit. The assessee has failed to make any representation during these proceedings. The only prayer of Ld. AR is another opportunity of hearing before registration authority which has been opposed by Ld. CIT-DR.
Keeping in mind the principles of natural justice, we accept the prayer of Ld. AR. Accordingly, the issue of registration stand restored back to the file of Ld. CIT(E) for fresh adjudication. The application may be considered under applicable / relevant clause. The assessee is directed to plead and prove its case.
The appeal stand allowed for statistical purposes. Order pronounced on 04-08-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 04-08-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT CHANDIGARH