MUGLA DULI (MD) MEMORIAL EDUCATION SOCIETY,VPO BASDARA vs. CIT EXEMPTIONS, CHANDIGARH

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ITA 1065/CHANDI/2024Status: DisposedITAT Chandigarh04 July 2025AY 2022-23Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the rejection based on illogical reasoning and non-maintainability was incorrect. The applications ought to have been considered on merits.

What were the 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.

What were the issues?

Whether the CIT(E) was justified in rejecting the applications for registration/approval on grounds of non-maintainability, without considering them on merits?

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 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

Heard together (2 matters)

ITA No.1064 /CHANDI/2024
ITA No.1065 /CHANDI/2024

Read from the judgment's own cause title. This page is filed under one of them.

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.

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.

3.

Both the applications stand allowed for statistical purposes. Order pronounced on 04-07-2025.

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