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Facts
The assessee's application for registration under sections 12AB and 80G(5) was rejected by the CIT(E) vide an order dated 15.03.2024. The assessee filed an appeal against this rejection. During the hearing, no one appeared on behalf of the assessee.
Held
Considering the principles of natural justice and potential communication issues in the faceless regime, the Tribunal decided to grant the assessee another opportunity to present its case. The impugned order was set aside, and the matter was restored to the CIT(E) for fresh adjudication after providing a reasonable opportunity of hearing.
Key Issues
Whether the rejection of the application for registration was justified given the failure of the assessee to appear and furnish details, and whether principles of natural justice warrant another opportunity for hearing.
Sections Cited
12AB, 80G(5)
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Income Tax Appellate Tribunal, “DB” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aggrieved by rejection of an application filed in Form No.10AB for seeking registration u/s 12AB and 80G(5) vide impugned order dated 15.03.2024, the assessee is in further appeal before us. At the time of hearing, none appeared for assessee despite notice.
Upon perusal of impugned order, it could be seen that the application has been rejected in view of the fact that the assessee failed to furnish the required details as called for by approving authority in hearing notices. Aggrieved, the assessee is in further appeal before us.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps at various levels during faceless regime, we deem it fit to grant another opportunity of hearing to the assessee to substantiate its case before Ld. CIT (Exemption). Accordingly, the impugned order is set aside and the matter of registration stand restored back to Ld. CIT(E) for fresh adjudication after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its applications. 4. The appeal stand allowed for statistical purposes. Order pronounced on 19th February, 2025.