ITAT Restores Renewal Applications u/s 12A and 80G Rejected on Technical Grounds:

ITAT Restores Renewal Applications u/s 12A and 80G Rejected on Technical Grounds The assessee trust was established on 25.07.2018 and had obtained registration and provisional approval under the Income-tax Act. For continuation, it filed Form 10AB seeking renewal of approval under Sections 12A and 80G. The Commissioner (Exemption) issued notices and called for documents; the assessee filed replies and furnished the required papers. Still, the Commissioner (Exemption) rejected the said applications by order dated 27.11.2024. The appeals filed before the Tribunal were against the order of the ld. CIT(E) dated 23.06.2025, dated refusing the renewal applications under Sections 12A and 80G. The assessee argued that the rejection was on technical grounds alone, without regard to the merits or the already existing documents on record, and that due opportunity of hearing had not been provided.The Department relied on the order of the ld. CIT(E). Central Issue Raised: Whether rejection of renewal applications under Sections 12A and 80G solely on the ground of delay/technical discrepancies, without affording adequate opportunity of hearing or considering merits, was sustainable in law. ITAT's Ruling: The ITAT held that the assessee had submitted papers and evidences before the Commissioner (Exemption) to demonstrate the genuineness of its charitable activities. However, the order of rejection was passed without a proper appraisal of these materials and without granting sufficient opportunity of hearing, thereby violating principles of natural justice. The Tribunal held that such rejection was not legally sustainable. Therefore, in the interest of justice, the matter was remanded to the file of the CIT(Exemption) with a direction to re-examine the documents and decide afresh in accordance with law after providing the assessee a reasonable opportunity of being heard. Both appeals of the assessee (ITA Nos. 4820 & 97/DEL/2025) were allowed for statistical purposes, with the issues restored to the file of the CIT(Exemption) for fresh adjudication To Read Full Judgment, Download PDF Given Below