HARI YAMUNA SEHYOG SAMITI ,HIMACHAL PRADESH vs. INCOME TAX OFFICER, NAHAN , HIMACHAL PRADESH
Facts
The assessee, Haryana Pythian Association, appealed against separate orders of the CIT(E), Chandigarh, dated 29.10.2025, which rejected its applications for registration under sections 12AA and 80G of the Income Tax Act. The assessee argued that the CIT(E) violated principles of natural justice by not providing a reasonable opportunity of being heard before rejecting the applications.
Held
The Tribunal acknowledged that while the CIT(E) provided opportunities, the assessee failed to furnish required details. However, considering the submissions were not fully deliberated by the CIT(E) and to uphold natural justice, the Tribunal restored both appeals to the CIT(E) for a fresh decision, directing that proper opportunities be given. A cost of Rs. 5,000 was imposed on the assessee for non-compliance, payable to the 'Poor Patient Welfare Fund'.
Key Issues
Whether the rejection of applications for registration under sections 12AA and 80G by the CIT(E) was justified, given the assessee's alleged non-compliance and claim of natural justice violation.
Sections Cited
12AA, 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
आदेश/Order Per Krinwant Sahay, AM : Captioned appeals have been filed by the assessee against the separate orders each dated 29.10.2025 passed by the Ld. CIT, Exemptions, Chandigarh
At the outset, ld. Counsel for the Assessee submitted that through the identical grounds raised in both the appeals, the foremost grievance of the Assessee is that the Ld. CIT(E), Chandigarh erred in violating the principal of natural justice by not providing reasonable opportunity of being heard to the applicant and passed the orders by rejecting the applications of the Assessee for Registration u/s 12AA / 80 G of the Act and as such the orders passed by the Ld. CIT(E) in both the appeals deserves to be quashed.
Per contra, Ld. DR relied on the order of the Ld. CIT(E).
We have considered the findings given by the Ld. CIT(E) in the orders wherein, the Ld. CIT(E) had directed
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the Assessee to furnish supporting evidence to demonstrate the nature and genuineness of the charitable activities but no corroborative documentary evidence / details or other verifiable records were furnished by the Assessee and in the absence of any documentary evidences / details, the Ld. CIT(E) rejected the applications of the Assessee for grant of registration in both the cases. From the orders of the Ld. CIT(E), it is evident that opportunities were given to be Assessee but the Assessee did not comply with. It neither filed the required details nor documents as sought by the Department. It is a very serious thing where Assessee’s / applicants are not appearing nor filing the requisite information before the lower authorities and directly coming to the Tribunal. Therefore, as discussed with ld. AR, a cost of Rs. 5,000/- (Rs. Five thousand only) is imposed upon the Assessee which is required to be deposited by the Assessee in the ‘Poor Patient Welfare Fund’ maintained by PGIMER, Chandigarh within 15 days of receipt of this order.
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However, ongoing through the material available on record and considering that the submissions of the Assessee were not considered by the Ld. CIT(E) and keeping in view the element of natural justice, we feel one more opportunity needs to be provided to the Assessee to produce and furnish necessary documents / information before the Ld. CIT(E). In view of this, the matter in both the appeals are restored to the file of the CIT(E) for decision afresh. Needless to say, that the ld. CIT(E) will give proper opportunity to the Assessee to present its case and to furnish necessary evidences and details. The Assessee is also directed to present its case before the Ld. CIT(E) as and when called for and will not contribute in unnecessary delay in the hearing of the appeal.
In the result, the appeals of the Assessee stand allowed for statistical purposes.
Order Pronounced on 25.2.2026. Sd/- Sd/- ( LALIET KUMAR ) ( KRINWANT SAHAY) Judicial Member Accountant Member “आर.के.”
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आदेश क� ��त�ल�प अ�े�षत / Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar
