Natural justice and reasoned decision-making required in delayed 12A registration applications; rejection set aside for reconsideration.

Orders rejecting consideration of delay in an assessee's application for registration under section 12A were unsustainable where they were issued on a printed pro forma with unstruck alternative findings, without showing reasoned consideration of the relevant material, including favourable reports, and without affording a hearing. The Rajasthan HC treated these defects as breach of natural justice and non-application of mind, and set aside the rejection to that extent. The Commissioner was directed to reconsider the matter in accordance with law.

---

---

Issues: Whether the orders rejecting consideration of the assessee's delay in applying for registration under section 12A of the Income-tax Act, 1961, were vitiated for breach of natural justice and non-application of mind, and whether the matter required fresh decision in accordance with law.

Analysis: The impugned orders were passed on a printed pro forma containing alternative findings, without striking out the inapplicable alternatives. The relevant material, including reports stated to be favourable to the assessee, was not shown to have been considered in a reasoned manner. It was also undisputed that no opportunity of hearing was afforded before the orders were made. On these facts, the rejection of the application for condonation of delay could not stand.

Conclusion: The orders were unsustainable as they were made in breach of the principles of natural justice and without proper application of mind; the rejection was set aside to that extent and the Commissioner was directed to reconsider the matter in accordance with law.

---