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Facts
The assessee, already approved under Section 12A, was refused approval under Section 80G of the Income Tax Act by the CIT (Exemption). The assessee contended that this refusal was based on a cryptic order and lacked a meaningful opportunity to be heard.
Held
The Tribunal found the CIT (Exemption)'s order cryptic and observed that the assessee was not given a proper opportunity. Consequently, the matter was restored to the CIT (Exemption) for fresh consideration, with directions to provide the assessee with a meaningful opportunity.
Key Issues
Whether the CIT (Exemption) was justified in refusing Section 80G approval through a cryptic order without providing a meaningful opportunity to the assessee.
Sections Cited
12A, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH:COCHIN
Before: SHRI INTURI RAMA RAO & SHRI PRAKASH CHAND YADAV
Date of Hearing : 29.05.2025 Date of Pronouncement : 23.06.2025 O R D E R PERPRAKASH CHAND YADAV, JUDICIAL MEMBER:
Present appeal of the assessee is arising from the order of ld. CIT(Exemption) dated 4.12.2024 having DIN & Order No.ITBA/EXM/F/EXM45/2024-25/1070901021(1) and relates to the AY 2025-26.
At the outset, ld. Counsel for the assessee pointed out that assessee has been given approval u/s 12A of the Income Tax Act, 1961 (in short “The Act”) by the Income Tax department. However, grant of approval u/s 80G of the Act has been refused without providing meaningful opportunity to the assessee.
Ld. D.R. relied upon the orders of authorities below.
Edasseri Smaraka Samithi Thrissur Page 2 of 2 4. After considering the rival submissions, we observe that the ld. CIT(Exemption) while dismissing the application of the assessee for grant of approval u/s 80G of the Act has passed a very cryptic order and had dismissed the application of the assessee making certain observations, which according to the assessee are contrary to the facts of the case. Therefore, considering the totality of the facts, we are of the view that this matter requires fresh consideration at the end of ld. CIT(Exemption). In view of this, we restore this matter to the file of ld. CIT(Exemption) for deciding afresh. Needless to say, that ld. CIT(Exemption) will grant meaningful opportunity to the assessee.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 23rd Jun, 2025