Tribunal grants appeal, finding Commissioner's order lacking judicial review.

The Tribunal allowed the appeal filed by the assessee against the order of the Commissioner of Income Tax (Exemption), Pune under section 12AB r/w section 80G(5)(iii) of the Income Tax Act, 1961. The Tribunal found that the Commissioner's order was passed without the application of judicial mind and without providing a reasonable opportunity of being heard. It directed the Commissioner to reconsider the application of the assessee trust in accordance with the law, granting relief to the assessee on the grounds raised.

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Issues:
Challenge to order under section 12AB r/w section 80G(5)(iii) of the Income Tax Act, 1961.

Analysis:
The appeal was filed by the assessee against the order passed by the Commissioner of Income Tax (Exemption), Pune under section 12AB r/w section 80G(5)(iii) of the Income Tax Act, 1961. The assessee contended that the order was bad in law as it was passed without the application of judicial mind and without providing a reasonable opportunity of being heard. The assessee also argued that the application of funds had been misconstrued, despite having obtained registration under section 12AB previously.

The facts of the case revealed that the assessee trust was registered under the Societies Registration Act, 1860, and the Bombay Public Trust Act, 1950. The trust had applied for registration under section 80G(5)(iv) and received provisional registration. However, the application in Form 10AB was rejected by the Commissioner based on the amended provisions of section 12AB r/w section 80G(5)(iii).

Upon review, it was found that the Commissioner had issued notices to the assessee requesting certain information and compliance, granting multiple opportunities to furnish the required details. Despite this, the assessee failed to make any submissions, leading to the rejection of the application. The Tribunal noted that in the interest of natural justice, the assessee should be given another opportunity to present its case before the Commissioner.

Consequently, the Tribunal set aside the impugned order and directed the Commissioner to reconsider the application of the assessee trust in accordance with the law. The sole ground raised by the assessee was allowed for statistical purposes, and the appeal was allowed on those grounds.

In conclusion, the Tribunal granted relief to the assessee, emphasizing the importance of providing a fair opportunity for the assessee to present their case and directing the Commissioner to reassess the application in compliance with legal requirements.

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