Tribunal grants appeal for fair hearing, remands for fresh decision under Income Tax Act

The Tribunal allowed both appeals by the assessee for statistical purposes, emphasizing the necessity of affording a fair opportunity for the assessee to be heard before issuing orders concerning registration and recognition under the Income Tax Act, 1961. The Tribunal set aside the orders and remanded the matters to the CIT(E) for fresh decisions due to the failure to provide adequate hearing opportunities to the assessee, as mandated by law.

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Issues:
1. Registration under section 12AA of the Income Tax Act, 1961.
2. Recognition under section 80G of the Income Tax Act, 1961.

Registration under section 12AA:
The assessee filed a request for registration under section 12AA on 21.05.2019. However, the notice from the CIT(E) was issued on 29.10.2019 for compliance on 08.11.2019, leading to the order being passed on 28.11.2019. The AR of the assessee argued that the delay in providing a notice and granting a hearing violated the provisions of the Act, as the order should have been passed within 6 months of the application. The Tribunal agreed, noting that the CIT(E) failed to provide a reasonable opportunity for the assessee to be heard. Consequently, the Tribunal set aside the order and remanded the matter back to the CIT(E) for a fresh decision after ensuring a fair hearing for the assessee.

Recognition under section 80G:
Similar to the registration request, the assessee's request for recognition under section 80G was also made on 21.05.2019. The notice for this request was issued on 05.11.2019, with the hearing scheduled for 08.11.2019, and the order was passed on 28.11.2019. The Tribunal found that the CIT(E) did not provide a reasonable opportunity for the assessee to be heard in this matter as well. Therefore, the Tribunal set aside the order related to section 80G and directed the CIT(E) to reconsider the issue after affording the assessee a fair hearing.

Conclusion:
Both appeals by the assessee were allowed for statistical purposes, with the Tribunal emphasizing the importance of providing a fair opportunity for the assessee to be heard before passing orders related to registration and recognition under the Income Tax Act, 1961. The Tribunal's decision to set aside the orders and remand the matters back to the CIT(E) for fresh decisions was based on the failure to grant adequate hearing opportunities to the assessee, as required by law.

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