MEDENG UNICUS SOCIETY,TADIGADAPA vs. INCOME-TAX OFFICER, EXEMPTION, RAJAHMUNDRY

Facts

The assessee, Medeng Unicus Society (an educational institution with provisional registration under Section 12A), applied for permanent registration under Section 12AB and Section 80G(5) of the Income Tax Act, 1961. The CIT(Exemption) rejected both applications via orders dated 13.02.2025, citing non-commensurate activities and partial replies to queries, but without providing detailed reasons.

Held

The Tribunal found the CIT(Exemption)'s orders to be cryptic, non-speaking, and in violation of natural justice. Expressing displeasure at the casual approach, the Tribunal set aside both impugned orders and remanded the applications back to the CIT(Exemption) for fresh adjudication. The CIT(Exemption) was directed to provide a reasonable opportunity of hearing and pass detailed, speaking orders.

Key Issues

Whether the CIT(Exemption) can reject applications for permanent registration under Section 12AB and Section 80G(5) through cryptic, non-speaking orders without providing detailed reasons and a proper opportunity of hearing.