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Facts
The assessee, Orienteering Federation of India, filed appeals against the CIT (Exemption)'s orders dated 06.07.2023, which rejected their applications for registration under section 12A and approval under section 80G of the Income-tax Act. The assessee contended that they were not given adequate opportunity, claiming no receipt of notice alerts via SMS or email, while the CIT (Exemption) rejected the applications for non-compliance.
Held
The Tribunal found that the CIT (Exemption) rejected the applications simply due to non-compliance without ensuring proper notice delivery or opportunity to the assessee. Consequently, the impugned orders were set aside, and the matters were restored for de novo adjudication, with a direction to provide the assessee with due and reasonable opportunity of being heard.
Key Issues
Rejection of applications for registration under section 12A and approval under section 80G of the Income-tax Act without providing adequate opportunity of being heard to the assessee.
Sections Cited
section 12A of the Income-tax Act, 1961, section 80G of the Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI SAKTIJIT DEY, VICE- & SHRI NAVEEN CHANDRA
PER SAKTIJIT DEY, VICE-PRESIDENT
Captioned appeals have been filed by the assessee against two separate orders, both dated 06.07.2023, passed by learned Commissioner of Income Tax (Exemption), Delhi, rejecting assessee’s applications seeking registration under section 12A of the Income-tax Act, 1961 (in short ‘the Act’) and approval under section 80G of the Act.
We have heard the parties and perused the materials on record. The limited grievance of the assessee is against complete lack of opportunity given by learned CIT (Exemption) before rejecting the applications noted above. It is the say of the assessee that it has neither received any SMS alert nor any email alert for uploading any notice or any communication relating to proceeding concerning applications under section 12A and 80G.
To support such claim, the assessee has also furnished affidavit.
It is observed from the respective orders of learned CIT (Exemption), he has rejected assessee’s application for registration under section 80G of the Act simply for non- compliance to his queries.
Considering the counter claim of the assessee that he has never received any notice issued by learned CIT (Exemption) and also the fact that assessee’s applications were rejected only for non-compliance, we are inclined to set aside the impugned orders of learned CIT (Exemption) and restore the issues back to his file for de novo adjudication after providing due and reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purposes.
In the result, appeals are allowed for statistical purposes.
Order pronounced in the open court on 25th April, 2024