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Facts
The assessee applied for registration/approval under Section 12A(1)(ac)(iii) and Section 80G(5)(iii), but the Ld. CIT(E) rejected them, deeming them non-maintainable because similar past applications were denied due to non-compliance. Despite the assessee filing all necessary documents for the current applications, the CIT(E) relied on previous rejections, leading to the current appeal before the ITAT.
Held
The Tribunal found the CIT(E)'s reasoning illogical, stating that fresh applications with all requisite documents should be considered on their merits rather than being deemed non-maintainable based on past rejections. Accordingly, the impugned orders were set aside, and the applications were restored to the Ld. CIT(E) for fresh consideration on merits, with the assessee to be given a fair hearing.
Key Issues
Whether fresh applications for registration/approval under Sections 12A(1)(ac)(iii) and 80G(5)(iii) can be rejected as non-maintainable solely due to prior rejections for non-compliance, or if they warrant consideration on merits after all requisite documents are submitted.
Sections Cited
12A(1)(ac)(iii), 80G(5)(iii)
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of twin applications seeking registration / approval u/s 12A(1)(ac)(iii) and u/s 80G(5)(iii) of the Act vide impugned orders dated 30-09-2024 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E))], the assessee is in further appeal before us. At the time of hearing, none appeared for the assessee. However, upon perusal of grounds of appeal, it could be seen that the assessee has filed all the requisite documents / information vide its reply dated 05-09-2024 whereas the registration / approval has been denied by approving authority on the ground that similar applications filed earlier were rejected on 13-10-2022 due to non-compliance on the part of the assessee and accordingly, the present applications have been treated as non-maintainable.
1. 2. In our considered opinion, the applications have been rejected on illogical reasoning. The earlier applications were rejected due to non- compliance on the part of the assessee. Apparently, the assessee preferred fresh applications and file all the relevant documents etc. to substantiate its claim. Therefore, the applications ought to have been considered on merits only and the applications could not be held to be non-maintainable. On these facts, we set aside the impugned orders and restore the applications back to the file of Ld. CIT(E) for fresh consideration on merits after affording reasonable opportunity of hearing to the assessee. The assessee is directed to plead and prove its case.
Both the applications stand allowed for statistical purposes. Order pronounced on 04-07-2025.