REPAKAVARI CHOULTRY,PALAKOL vs. INCOME TAX OFFICER (EXEMPTION WARD), RAJAHMUNDRY

Facts

The assessee applied for registration under Section 12AB of the Income Tax Act, 1961. The Ld. CIT(E) rejected the application, observing that the assessee's activities were not commensurate with the objectives of its registered deed/MoA/AoA.

Held

The Income Tax Appellate Tribunal found that the Ld. CIT(E)'s rejection order was a non-speaking order as it did not specify which activities were non-compliant. Therefore, the Tribunal set aside the rejection order and remanded the matter back to the Ld. CIT(E) for fresh consideration after providing another opportunity of being heard to the assessee.

Key Issues

Whether the Ld. CIT(E) was justified in rejecting the application for registration under Section 12AB based on non-commensurate activities through a non-speaking order.