Loading judgment…
Facts
The assessee filed applications for registration/approval under sections 12A(1)(ac)(iii) and 80G(5)(iii) of the Income Tax Act. These applications were rejected by the CIT(E) on the ground that similar earlier applications were rejected due to non-compliance, deeming the present applications non-maintainable.
Held
The Tribunal held that the rejection based on illogical reasoning and non-maintainability was incorrect. The applications ought to have been considered on merits.
Key Issues
Whether the CIT(E) was justified in rejecting the applications for registration/approval on grounds of non-maintainability, without considering them on merits?
Sections Cited
12A(1)(ac)(iii), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
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.