Loading judgment…
Facts
The CIT(E) rejected applications from multiple assessees for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5) of the Income Tax Act, 1961. The rejection was based on the non-completion of re-registration under the Societies Registration Act. The assessees argued that delays were due to administrative changes following the conversion of Jammu & Kashmir into a Union Territory and communication issues with the Registrar of Societies, and requested an opportunity to furnish the re-registration certificate.
Held
The Tribunal, invoking principles of natural justice, remanded all appeals back to the CIT(E) for fresh adjudication. The CIT(E) was directed to provide the assessees with a proper opportunity of hearing and consider the re-registration certificates which the assessees undertook to file. The application for 80G(5) approval was also remanded, as its approval was contingent on the 12A registration.
Key Issues
Whether the CIT(E) was justified in rejecting applications for 12A registration and 80G approval without affording proper opportunity of hearing, particularly when delays in society re-registration were due to external administrative changes beyond the assessee's control.
Sections Cited
Section 12A(1)(ac)(iii), Section 80G(5), Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: DR. M. L. MEENA & SH. UDAYAN DASGUPTA
ORDER Per Bench.:
These appeals are filed by the assessees against the separate order of the CIT(E), Chandigarh, even dated 11/12/2024, rejecting their application for registration u/s 12A(1) (ac)(iii) of the Act 1961.
At the outset, the Ld. AR for the assessee submitted that the Id. CIT(E) has rejected the application on the ground that re-registration of the society has not been done as per the provisions of the Societies Registration Act without allowing the opportunity of hearing to the assessee before rejection of their application. The Id. AR of the contended that application for re-registration has already been made before appropriate authorities, Government of Jammu & Kashmir, and on account of change in status of Jammu & Kashmir State to Union Territory, the rules for registration has undergone change and it was taking longer time for completion of the entire process. There has been a delay in communication from the registrar of societies J&K in acknowledging the receipt of an application for registration of society and issuing the required reregistration certificate to that effect. As such, the matter has been pending for verification of credentials of the society with the office of the registrar of society, Jammu & Kashmir. The Appellant has agreed to file reregistration certificate as required before the Id. CIT(E), Chandigarh and requested that may be remanded back to the CIT (E) to adjudicate the matter afresh after affording due opportunity of being heard. The Ld. DR has no objection to the request of the assessee if he furnishes the required reregistration certificate as per amended rules.
Having heard both the sides, perusal of the material available in record, and documentary evidence furnished before us, we consider it appropriate to remand the matter back to the file of the learned CIT (Exemption) for considering the application of the appellant society afresh in the light of the copy of registration certificate of the society to be issued by the competent authority the Registrar of societies of Jammu and Kashmir under Societies Registration Act, 1960, which the assessee has undertaken to file before the Ld. CIT(E). The appellant society also undertakes to cooperate in the fresh proceedings before the Ld. CIT(E).
In view of the principles of natural justice, we restore back the matter to the file of the Ld. CIT(E) to adjudicate the matter afresh after considering the written submission and evidence filed on record and may be filed before him during the fresh proceedings after granting sufficient opportunity of being heard to the assesse in accordance with law.
Accordingly, assessment order is set aside and matter is remanded back to the file of the assessing officer to pass de novo assessment as per law.
In the result, the captioned appeal of the assessee is allowed for statistical purposes.
In the present appeal, the assessee challenged rejection its application for approval u/s 80G (5) filed on 28.06.2024 in Form 10AB by the Id. CIT(E) vide order dated 11.12.2024. 7 .1 Since we have remanded back the registration matter u/s 12A(1)(ac)(iii) back to the Id. CIT(E), in the assesses appeal in this matter would also be remanded for reconsideration of the CIT (E ) as this matter is to be taken up for approval in tandem with The registration application.
ITA. No. 12 /Asr/2025
The issue and the facts in /Asr/2025 are exactly similar to the issue and facts discussed in /Asr/2025 and therefore, our observation /Asr/2025 shall apply to the appeal in /Asr/2025 in mutatis mutandis, ordered accordingly.
In the result, all the three appeals of the assessees are allowed for statistical Purposes. Order pronounced on 26.09.2025 in the open Court.