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Facts
The assessee, Kashmir Animal Welfare Foundation, appealed the rejection of its applications for registration/approval under sections 12A(1)(ac)(iv) and 80G by the CIT(E). The applications were rejected primarily because the assessee had been filing ITR-7, without issuing a show-cause notice to determine the correct position.
Held
The Tribunal set aside the impugned orders and remanded the matter back to the CIT(E). It directed the CIT(E) to decide the applications afresh after affording a proper opportunity of hearing to the assessee to present its case. The rejection of 80G approval was also restored to the CIT(E) for similar consideration.
Key Issues
Whether the rejection of applications for registration/approval under sections 12A(1)(ac)(iv) and 80G without providing an opportunity of hearing or show-cause notice was valid.
Sections Cited
12A(1)(ac)(iv), 80G, 10(23B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
Kashmir Animal Welfare Foundation ITO बनाम/ Dard Pora, Kreeri, Baramulla Ward-1 Vs. Jammu and Kashmir- 193198 Srinagar (J&K)-190001 �ायीलेखासं./PAN. AAETK-2319-Q (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Sh. Rohit Kapoor, (Advocate) a/w Shri V.S. Aggarwal (ITP) – Ld. ARs ��थ�कीओरसे/Respondent by : Shri Jivandeep Singh Kahlon, (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 13-10-2025 घोषणाकीतारीख /Date of Pronouncement : 16/10/2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of twin applications seeking registration / approval u/s 12A(1)(ac)(iv) & 80G vide impugned orders dated 05-03- 2025 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us.
Upon perusal of order denying registration u/s 12A(1)(ac)(iv), it could be seen that the application has been rejected merely on the ground that the assessee had been filing ITR-7. Apparently, no show- cause notice has been issued to the assessee to ascertain the correct position. The Ld. AR explained that the assessee filed ITR-5 for AY 2023-24 and it filed ITR-7 for AY 2024-25 since it claimed deduction u/s 10(23B) in AY 2024-25. The Ld. AR further stated that the assessee is entitled for impugned registrations which could be established if another opportunity is granted to the assessee. The Ld. CIT-DR opposed any interference in the rejection order.
Accepting the prayer of Ld. AR, we set aside the impugned order and direct Ld. CIT(E) to decide the fate of impugned application afresh after affording opportunity of hearing to the assessee. The assessee is directed to plead and prove its case.
The approval u/s 80G has been denied, being consequential in nature. This appeal also stand restored back to Ld. CIT(E) with similar directions.
Both the appeals stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.