ITAT Restores Trust’s Registration Applications under Sections 12A and 80G, Rejected Without Hearing

The assessee, being a charitable trust involving activities of education and social welfare among poor and backward sections of society, submitted Form 10AB for registration under Section 12A(1)(ac)(iii) and permanent registration under Section 12AB, and for approval under Section 80G(5)(iii) of the Income-tax Act. On receipt of the notices, the assessee filed replies and supporting documents.

Ignoring the reply and supporting documents filed, the Commissioner (Exemption) discarded the applications by order dated 14.02.2025 without extending any opportunity of hearing. The subsequent application was also rejected. Aggrieved, the assessee preferred appeals before the Tribunal, contending that its replies and annexures were not considered. The Department supported the order of the Commissioner (Exemption).

Issue Before ITAT Whether rejection of registration applications under Section 12A(1)(ac)(iii) and Section 80G(5)(iii) without affording a reasonable opportunity of hearing was valid in law.

ITAT’s Decision: The Tribunal noted that the assessee had put on record a number of documents to prove the genuineness of its operations. It found that the rejection was unjustified as no sufficient opportunity of hearing was given.
Thus, the issues were restored to the file of the Commissioner (Exemption) with a direction to examine the documents afresh and decide the applications in accordance with law after providing reasonable opportunity. Both appeals (ITA Nos. 4774 & 4775/DEL/2025) were allowed for statistical purposes.

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