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Facts
The assessee applied for registration under Section 12AA and 80G of the Income Tax Act, 1961. The Ld. CIT(E) rejected these applications, citing the assessee's failure to furnish supporting evidence for its charitable activities despite being given opportunities. The assessee appealed, arguing a violation of natural justice due to a lack of reasonable opportunity to be heard.
Held
The Tribunal found that although the assessee failed to comply with requests for information, the submissions of the assessee were not considered. Considering the principle of natural justice, the Tribunal decided to provide one more opportunity to the assessee. Therefore, the matter was restored to the file of the CIT(E) for a fresh decision, with directions for proper opportunity to be given to the assessee.
Key Issues
Whether the CIT(E) erred in rejecting the applications for registration under Section 12AA and 80G without providing adequate opportunity of being heard, thereby violating the principles of natural justice.
Sections Cited
12AA, 80G
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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
1. 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 /
1. 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
1641 & 1642-Chd-2025 3 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.
1641 & 1642-Chd-2025 4
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.