ITAT Sets Aside Rejection of 12AB and 80G Registration Passed Without Hearing Assessee

The Income Tax Appellate Tribunal (ITAT) Delhi held that the application for registration under Sections 12AB and 80G of the Income-tax Act is liable to be set aside if a reasonable opportunity of being heard had not been given to the applicant.

The assessee is a charitable trust that has filed appeals before the ITAT challenging the orders of the CIT (Exemptions), Delhi, rejecting its applications for registration under Sections 12AB and 80G of the Income-tax Act, 1961. The Tribunal first condoned the delay in filing the appeals after considering the assessee’s application for condonation.

It was submitted that the applications had been rejected without giving the trust any opportunity of being heard.

The Tribunal observed that the CIT(E) had rejected the application under Section 12AB without providing the assessee an opportunity to present its case and held that such action was in violation of the principles of natural justice and the Tribunal found it appropriate to restore the matter for fresh consideration.

Accordingly, the Tribunal directed the CIT (Exemptions) to provide the assessee with a proper opportunity of hearing and thereafter decide the applications on merits in accordance with the law. The assessee was also directed to cooperate with the proceedings and make appropriate submissions. Both appeals were accordingly allowed for statistical purposes.