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Facts
The Assessee, Haryana Pythian Association, filed two appeals against the CIT(E)'s orders dated 29.10.2025, which rejected its applications for registration under sections 12AA and 80G of the Income Tax Act. The primary grievance of the Assessee was the alleged violation of natural justice due to not being given a reasonable opportunity of being heard.
Held
The Tribunal acknowledged that the Assessee was given opportunities but failed to furnish the required details and documents to the lower authorities, directly approaching the Tribunal. However, considering the principle of natural justice, the Tribunal restored both matters to the CIT(E) for a fresh decision, directing the Assessee to present its case and furnish necessary evidence, while also imposing a cost of Rs. 5,000/- for non-compliance.
Key Issues
Rejection of applications for registration under sections 12AA and 80G of the Income Tax Act; alleged violation of natural justice due to lack of opportunity of being heard.
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
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.