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Facts
The assessee, JK Hope & Health Foundation, appealed against the rejection of its application for registration under section 12A(1)(ac)(iii) by the Ld. Commissioner of Income Tax (Exemption), Chandigarh. The Tribunal noted that the impugned order did not clearly state if the rejection was due to the assessee's non-compliance.
Held
Considering principles of natural justice and potential communication gaps in the faceless regime, the Tribunal set aside the CIT(E)'s order. The matter was restored to the CIT(E) for fresh consideration, granting the assessee another opportunity to present its case.
Key Issues
Whether the rejection of an application for registration under Section 12A(1)(ac)(iii) by the CIT(E) without affording adequate opportunity or clearly citing non-compliance violates principles of natural justice.
Sections Cited
12A(1)(ac)(iii)
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Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
JK Hope & Health Foundation CIT (Exemption) बनाम/ C/O Raj Guest House Chandigarh. Kursoo Rajbagh Vs. Srinagar. �थायीलेखासं./जीआइआरसं./PAN/GIR No AAFCJ-5227-L (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : None ��थ�कीओरसे/Respondent by : Shri Jivandeep Singh Kahlon (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 30-06-2025 घोषणाकीतारीख /Date of Pronouncement : 03 -07-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application seeking registration u/s 12A(1)(ac)(iii) vide impugned order dated 05-07-2024 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. At the time of hearing, none appeared for assessee. The registry has noted delay of 71 days in the appeal which stand condoned. The Ld. CIT-DR has pleaded for dismissal of the appeal. Upon perusal of para 3.2 of the impugned order, it could not seen that the application has been rejected for want of any compliance from the assessee.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we deem it fit to afford another opportunity of hearing to the assessee to substantiate its case before Ld. CIT(E). Accordingly, the impugned order is set aside and the matter of registration is restored back to the file of Ld. CIT(E) for fresh consideration with a direction to the assessee to plead and prove its case.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.