KM ACCOUNTING RESEARCH FOUNDATION,NEW DELHI vs. CIT (EXEMPTIONS), NEW DELHI

This appeal by assessee has been directed against the order of Ld. CIT(Exemptions), New Delhi, dated November, 2015 rejecting application for approval/exemption u/s 80G of the IT Act.

Briefly the facts of the case are that the assessee filed applications for registration u/s 12AA of the IT Act and approval u/s 80G of the IT Act. Both applications were decided vide impugned order and rejected the same. Ld. CIT(Exemption) while rejecting the registration application u/s 12AA of the IT Act also held that since registration application u/s 12AA have been rejected, therefore, application seeking exemption u/s 80G is also rejected.

After considering the rival submission, we are of the view the matter requires re-consideration at the level of the Ld. CIT(Exemptions), New Delhi. Ld. Counsel for the assessee referred to page 60 of the paper book which is order of registration u/s 12AA dated 13.04.2016 passed by Ld. CIT(Exemptions), New Delhi. He has submitted that after rejection of the application u/s 12A of the IT Act, the assessee had taken up the matter with the department by filing grievance petition and ultimately registration have been granted to the assessee u/s 12AA of the IT Act. Since application u/s 80G have been rejected mainly on the reason that registration application u/s 12AA have been rejected, we are of the view the matter requires re-consideration at the level of the Ld. CIT(Exemptions). On rejection of registration application u/s 12AA of the assessee, Ld. CIT(Exemptions) has not given any reasons for rejecting the application u/s 80G on merits because it was rejected mainly on the reasons that registration application u/s 12AA of the IT Act have been rejected. Now department has granted registration u/s 12AA to the assessee, therefore, Ld. CIT(Exemptions) is required to pass reasoned order for deciding the application u/s 80G of the IT Act.

In view of the above discussions, we set aside the impugned order and restore the appeal of the assessee to the file to Ld. CIT(Exemptions), New Delhi with direction to redecide the application u/s 80G of the IT Act in accordance of law by passing reasoned order by giving reasonable sufficient opportunity of being heard to the assessee. In the result, appeal of the assessee allowed for statistical purposes.