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Facts
The assessee, Jalandhar District Cricket Association, appealed against the rejection of its application for registration under section 12A(1)(ac)(iii) by the Ld. Commissioner of Income Tax (Exemption). The registration was denied solely on the ground that the assessee was not considered to have provisional registration, despite the assessee claiming to have provisional registration for AYs 2021-22 to 2023-24 and holding provisional approval (Form No.10AC).
Held
The Tribunal observed that no opportunity of hearing was granted to the assessee before rejecting the application, which constituted a violation of the principle of natural justice. Consequently, the impugned order was set aside, and the matter of registration was restored to the Ld. CIT(E) for fresh adjudication, with directions to provide the assessee with an opportunity of hearing.
Key Issues
Whether the rejection of the 12A registration application without providing an opportunity of hearing violated the principle of natural justice; and whether the assessee's provisional registration was adequately considered.
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
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 17-09-2024 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us.
Upon perusal of impugned order, it could be seen that the registration has been denied for the sole reason that the assessee was not having provisional registration.
The Ld. AR raised issue of violation of principle of natural justice and placed on record various documents to contend that the assessee was having provisional registration for AYs 2021-22 to 2023-24. The Ld. AR also referred to the CBDT Circular No.7/2024 dated 25-04- 2024 providing certain concession to trust entities.
Upon perusal of impugned order, it could prima facie be seen that no opportunity of hearing has indeed been granted to the assessee by approving authority before rejecting the registration application. The statutory provisions mandate grant of such an opportunity to the assessee and the impugned order has been passed in violation of principle of natural justice. It also emerges that the assessee holds provisional approval which is evident from copy of Form No.10AC as placed on record.
For the reasons stated above, the impugned order is set aside and the issue of registration stand restored back to Ld. CIT(E) for fresh adjudication of the registration application after appreciating the correct facts. Needless to add that an opportunity of hearing would be granted to the assessee. The assessee is directed 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. (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: -07-2025 आदेश की "ितिलिप अ"ेिषत / Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF