GURUDWARA SHRI GURU ANGADDEVJI SAHEBJI NYAS,INDORE vs. CIT (E), BHOPAL
Facts
The assessee's application for final registration under section 12AB of the Income Tax Act was rejected by the CIT(E), Bhopal, and its provisional registration was cancelled. The assessee appealed this order, arguing that the rejection was made without a proper opportunity of being heard and was thus against natural justice.
Held
The Tribunal restored the matter back to the file of the CIT(E) for fresh adjudication. The CIT(E) was directed to grant a necessary opportunity of hearing to the assessee and pass an appropriate order, while the assessee was directed to participate in the hearings without seeking unnecessary adjournments.
Key Issues
Whether the rejection of registration under Section 12AB without providing a reasonable opportunity of hearing violates the principles of natural justice.
Sections Cited
12AB, 12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order dated 25.07.2024 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] having DIN: ITBA/EXM/F/EXM45/2024-25/1067029217(1) by which the assessee’s application for grant of final registration u/s 12AB of Income-tax Act, 1961 has been rejected and the provisional registration granted earlier vide order dated 06.05.2023 has also been cancelled, the assessee has filed this appeal on following grounds:
Page 1 of 4
Gurudwara Shri Guru Angaddevji Sahebji Nyas ITA No. 724/Ind/2024
“1.That on the facts and in the circumstances of case Ld. CIT(E), Bhopal has erred in rejecting the application for registration 12A(1)(ac)(iii) U/s filed in Form 10AB without affording reasonable opportunity of being heard is bad in law as the said order is passed against the principles of natural justice. 2. That the impugned order so passed is illegal and wrong. 3.That the assessee craves leave to add, amend, alter or delete any of the grounds of appeal and all the grounds are without prejudice to each other.”
Ld. AR for assessee firstly carried us to the impugned order. He would
demonstrate that the CIT(E) has acknowledged that the assessee filed
certain information/documents in response to the notice issued but,
however, did not file reply to the notice dated 09.07.2024 seeking further
information of corpus donations received during last three financial years.
Ld. AR next submitted that the Balance-Sheet of assessee as on
31.03.2024 shows total corpus donations received uptill 31.03.2024
amounting to Rs. 70,50,000/-. He submitted that the assessee has already
collected the letters of M/s Satyanshu Trading Company and M/s Manoj
Trading Company who had given corpus donations of Rs. 40,00,000/- and
Rs. 30,00,000/- to assessee and for remaining corpus donation of Rs.
50,000/-, the efforts are being made to collect further evidences from
concerned donors. Ld. AR submitted that the assessee is constructing a
gurudwara and corpus donations were received therefor. He submitted that
although on the date of hearing fixed by Ld. CIT(E), the assessee was not
able to file evidences of corpus donations but now it is ready to file evidences
and satisfy the CIT(E). He submitted that the registration u/s 12A is very
important for assessee and the assessee would find it extremely difficult to
Page 2 of 4
Gurudwara Shri Guru Angaddevji Sahebji Nyas ITA No. 724/Ind/2024
achieve the charitable/religious object in absence of registration. Therefore,
in the interest of justice, the present matter must be restored at the level of
CIT(E).
Ld. DR for revenue agreed with the proposal made by Ld. AR for
restoration of this case at the level of CIT(E). However, he requested that the
assessee should be directed to make representation before CIT(E) without
seeking unnecessary adjournments.
Considering above submissions and also having regard to the
principle of natural justice and fair play, we deem it fit to remand this
matter back to the file of CIT(E) for adjudication afresh. The CIT(E) shall give
necessary opportunity of hearing to assessee and pass an appropriate order.
The assessee is also directed to 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 order in accordance with
law. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 26/03/2025
Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Page 3 of 4
Gurudwara Shri Guru Angaddevji Sahebji Nyas ITA No. 724/Ind/2024
Indore िदनांक/Dated : 26/03/2025
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
Page 4 of 4
