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Facts
The assessee filed applications for registration under Section 12AB and approval under Section 80G. The CIT(E) rejected these applications and cancelled the provisional registrations/approvals, citing non-compliance with queries and commercial nature of training activities.
Held
The Tribunal set aside the orders of the CIT(E) and remanded the matters back for fresh adjudication. The CIT(E) was directed to grant the assessee a fresh opportunity of hearing, and the assessee was cautioned against seeking unnecessary adjournments.
Key Issues
Whether the rejection of applications for registration/approval and cancellation of provisional registrations/approvals by the CIT(E) was justified on grounds of non-compliance and commercial activities, and if a fresh opportunity should be granted.
Sections Cited
12AB, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
The captioned two (2) appeals, one relating to registration u/s 12AB and other relating to approval u/s 80G, are filed by assessee against two (2) separate orders both dated 21.12.2024 and both passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”], by which the assessee’s applications for grant of final registration u/s 12AB / final approval u/s 80G of Income-tax Act, 1961 [“the act”] have been rejected and the provisional registration u/s 12AB / provisional approval u/s 80G granted earlier have also been cancelled.
SWA Niranjanlal Agrawal Foundation Samiti & 200/Ind/2025
Ld. AR for assessee carried us to one of the two orders passed by CIT(E) [since both orders are identical]. The same reads as under:
“Annexure (mentioned in row-9 above) A query latter dated 28/10/2024 has been issued to the assessee regarding to furnish all the information/documents on before 11/11/2024. Then assessee society fails to avails the opportunity on the above mentioned date and no reply was furnished. Subsequently a second opportunity was given to the society vide letter dated 14/11/2024 regarding to furnish complete information/documents on or before 22/11/2024. In response to the above notices the assessee society submitted his reply, alongwith documents. During the examination of the Income & Expenditure account for the year ended on 31st March 2023 it is observed that the assessee society received fees of Rs. 11,85,000/- from farmers regarding training and an amount of Rs. 12,88,194/- is debited for Jaivik Agriculture development programme. This specific training programme is found to be commercial in nature, therefore, it is not covered under charitable activities as mentioned in the object of the assessee society. The assessee society does not substantiate the other charitable expenditure debited in the Income & Expenditure account with documentary evidences. Also, it is found that after giving two opportunity the assessee fails to furnish point wise complete information as per original query letter date 28/10/2024. In view of above, due to non-compliance of requisite questionnaire dated 28/10/2024 by the assessee society, the application of the assessee in Form 10AB for grant of registration u/s 12AB & 80G is hereby rejected and provisional registration are also hereby cancelled.” [emphasis supplied] 3. Thus, the Ld. AR submitted that the assessee initially filed reply to CIT(E) which is acknowledged by CIT(E) himself in impugned order.
Therefore, the assessee does not have non-compliant attitude. However, Ld. CIT(E) required considered assessee’s reply as incomplete and required further details/documents from assessee and in absence of same dismissed assessee’s applications. Ld. AR asserts in open court that the assessee is ready to file all details/documents as required by CIT(E) and as may be further needed. Therefore, in the interest of justice, one more opportunity be Page 2 of 4
SWA Niranjanlal Agrawal Foundation Samiti & 200/Ind/2025 given to assessee to represent its cases by restoring these matters to the file of CIT(E).
Ld. DR for revenue submits that he does not have any objection if these cases are re-stored to CIT(E) but he makes a request to direct the assessee to represent cases before CIT(E) and do not seek unnecessary adjournments.
In view of above submissions of parties and having regard to the principle of natural justice, we remand these matters back to the file of CIT(E) for adjudication afresh. The CIT(E) shall give necessary opportunity of hearing to assessee and pass appropriate orders uninfluenced by his earlier orders in any manner. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by CIT(E) and do not seek unnecessary adjournments failing which the CIT(E) shall be at liberty to pass appropriate orders in accordance with law. Ordered accordingly.
Resultantly, these appeals are allowed for statistical purpose.
Order pronounced in open court on 30/09/2025