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Facts
The assessee filed appeals against orders of the CIT(Exemption) dated 04.07.2023, which rejected its application for registration under section 80G(5)(iii) and cancelled registration granted under section 12AB. The assessee contended that these orders were passed without granting a proper opportunity of being heard. The AR submitted that the assessee was unable to make submissions before the CIT(E).
Held
The Tribunal observed that no prejudice would be caused to the Revenue if the assessee was given an opportunity of being heard. Consequently, the matter was remanded back to the CIT(Exemption) to pass a fresh order after affording due opportunity of being heard to the assessee.
Key Issues
Whether the CIT(Exemption) erred in rejecting the assessee's applications for 80G registration/approval and cancelling 12AB registration without granting a proper opportunity of being heard.
Sections Cited
80G(5)(iii), 12AB, 12A(1)(ac)(iii), 12A(1)(ac)(vi)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: Dr. B. R. R. KumarSh. Sudhir Pareek
ORDER Per Bench: The present appeals have been filed by the assessee against the orders of ld. CIT(Exemption), Delhi dated 04.07.2023. 2. In following grounds have been raised by the assessee:
“On facts and circumstances prevailing in the case and as per the provisions of the law, Ld. Commissioner of Income Tax Exemptions ("Ld. CIT(E)") has erred in not granting registration u/s 80G(5)(iii) is hereby rejected without granting proper opportunity of being heard.
2. On the facts and circumstances prevailing in the case and as per the provisions of the law, Ld. CIT(E) has erred in rejecting the application filed by the Appellant in Form 10AB for approval u/s 80G(5)(iii)) of the Income tax act, & 730/Del/2024 2 Youre Are Wounderful Project 1961 and order passed u/s clause (ii)(b)(B) of second proviso to section 80G(5) is improper, unwarranted, unjustified and contrary to the provision of the Act and facts prevailing in the case.”
In , following grounds have been raised by the assessee:
“1. On facts and circumstances prevailing in the case and as per the provisions of the law, Ld. Commissioner of Income Tax Exemptions ("Ld. CIT(E)") has erred in cancelling registration granted u/s 12AB r.w.s. 12A(1)(ac)(iii) is hereby rejected without granting proper opportunity of being heard.
On the facts and circumstances prevailing in the case and as per the provisions of the law, Ld. CIT(E) has erred in rejecting the application filed by the Appellant in Form IOAB u/s 12A(1)(ac)(iii) of the Income tax act, 1961 and order passed u/s 12AB(1 cancellation of the registration granted u/s 12AB r.w.s 12A(1)(ac)(vi) is improper, unwarranted, unjustified and contrary to the provision of the Act and facts prevailing in the case.”
At the outset, the ld. AR submitted that the assessee could not make their submissions before the ld. CIT(E) and hence, the order has been passed summarily rejecting the application of the assessee.
We have gone through the order of the rejection passed b y the ld. CIT(E) and of the considered opinion that no prejudice would be caused to the Revenue if an opportunity of being heard is given to the assessee. Hence, the matter is remanded to ld. CIT(E) to pass an order de novo after affording an opportunity of being heard to the assessee. & 730/Del/2024 3 Youre Are Wounderful Project 6. In the result, the appeals of the assessee are allowed for statistical purpose. Order Pronounced in the Open Court on 31/07/2024.