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Facts
The Assessee filed appeals challenging the CIT(E)'s orders dated 31.03.2023, which rejected their applications for registration under Section 12A and Section 80G(5) of the Income Tax Act. The CIT(E) rejected the applications on the grounds that the Assessee failed to comply with notices and submit necessary details. The Assessee contended they were not provided sufficient opportunity and sought a remand to the CIT(E) for fresh consideration.
Held
The Tribunal found it appropriate to restore the matter back to the file of the CIT(E) for fresh consideration, directing the CIT(E) to decide the applications anew after providing the Assessee an opportunity of being heard. The Assessee was also directed to submit all required details and clarifications.
Key Issues
Whether the CIT(E) was justified in rejecting the Assessee's applications for registration under Section 12A and 80G(5) for non-compliance, and whether adequate opportunity was provided to the Assessee.
Sections Cited
Section 12A of the Income Tax Act, 1961, Section 80G(5) of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI
Before: SHRI YOGESH KUMAR US & SHRI AVDHESH KUMAR MISHRA
ORDER
PER YOGESH KUMAR US, JUDICIAL MEMBER:
The Assessee has preferred the captioned appeals by challenging the orders dated 31.03.2023 wherein the Ld. Commissioner of Income Tax(Exemption) (“CIT(E) for short”) has rejected the registration under Section 12A of the Income Tax Act, 1961 [“the Act” for short] and also rejected the registration under Section 80G(5) of the Act.
The learned counsel for the Assessee submitted that the Ld. CIT(E)) has not provided sufficient opportunity and not considered the material on record and thereby committed error in passing the order impugned, by violating the principles of natural justice, thus, sought for remanding material to the file of the Ld. CIT(E) for fresh consideration.
Per contra, Learned DR submitted that the appeals of the Assessee is de void of merit and sought for dismissal of the appeal.
We have heard the parties and perused the material.
During the proceedings before the Ld. CIT(E), the Assessee has been issued with questionnaire to furnish certain details/documents/clarification in support of claim of registration under Section 12A and 80G(5) of the Act. The applications for registration were rejected on the ground that Assessee has failed to comply with the notices by submitting requisite details and information.
Considering the above facts and circumstances, we deem it fit to restore the matter to the file of the Ld. CIT(E) to decide the applications filed by the appellant afresh in accordance with law after providing opportunity of being heard to the appellant. The Appellant is also directed to submit all details/documents/clarification in support of its claim for registration under Section 12A as well as under Section 80G(5) of the Act.