NAV APOORV AMAR WELFARE DHARMIK AND PARMARTHIK TRUST,INDORE vs. CIT EXEMPTION , BHOPAL
Facts
The assessee's application for final approval under Section 80G(5) was rejected by the CIT(E), cancelling the provisional approval. The CIT(E) cited non-submission of further details and the lack of Section 12AB registration as reasons.
Held
The Tribunal restored the matter to the CIT(E) for fresh adjudication, directing the CIT(E) to provide a hearing opportunity. The assessee was also directed to ensure participation without seeking unnecessary adjournments.
Key Issues
Whether the rejection of final approval under Section 80G(5) by the CIT(E) was justified without granting adequate opportunity for hearing and considering the pending appeal for Section 12AB registration.
Sections Cited
80G(5), 12AB
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 21.12.2024 passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] bearing DIN: ITBA/EXM/F/EXM45/2024-25/1071435334(1) by which the assessee’s application for grant of final approval u/s 80G(5) of Income-tax Act, 1961 [“the Act”] has been rejected and the provisional approval earlier granted vide order dated 15.09.2023 is also cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
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Nav Apoorv Amar Welfare Dharmik and Parmarthik Trust ITA No. 228/Ind/2025
Ld. AR for assessee drew us to the impugned order to demonstrate
that the CIT(E) has acknowledged in Para 1 that the assessee filed reply and
certain documents. But he has rejected assessee’s application for the
reasons mentioned in Para 2 & 3 of impugned order which are two-fold,
namely (i) further details/clarifications sought by CIT(E) were not filed and
(ii) one of the conditions for grant of approval u/s 80G is such that the
assessee must have registration u/s 12AB but this assessee does not have
registration u/s 12AB since the assessee’s application for grant of
registration u/s 12AB had been rejected earlier vide order dated 04.09.2024
by his office. Ld. AR submitted that the assessee is ready to file any detail or
clarification as may be required by CIT(E). So far as the rejection of
assessee’s application for registration u/s 12AB by CIT(E) is concerned, the
assessee has filed a separate appeal No. 694/Ind/2024 to ITAT, Indore
against the order dated 04.09.2024 of CIT(E) and the ITAT, Indore has
already restored the matter to CIT(E) for a fresh adjudication vide order
dated 25.03.2025. Thus, having regard to this situation and also in the
interest of justice, Ld. AR prays that this matter should also be restored at
the level of CIT(E) for a fresh adjudication.
Ld. DR for revenue agrees with the prayer of Ld. AR but makes a
request to direct the assessee to represent its case before CIT(E) and do not
seek 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
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Nav Apoorv Amar Welfare Dharmik and Parmarthik Trust ITA No. 228/Ind/2025
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 immediately after conclusion of hearing and subsequently reduced in writing on the very same day.
Sd/- sd/-
(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
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
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