Institute's appeal allowed after being denied adequate opportunity to present case in Form 10AB application under sections 12AB and 80G(5)

ITAT Raipur allowed the assessee institute's appeal for statistical purposes after finding that the institute was denied adequate opportunity to present its case during proceedings before CIT(E) regarding rejection of Form 10AB application under sections 12AB and 80G(5). The matter was restored to CIT(Exemption), Bhopal with directions to re-adjudicate after providing reasonable hearing opportunity to the assessee institute and pass fresh order accordingly.

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Issues Involved:
Appeal against rejection of application for registration u/s.12AB and u/s.80G(5) of the Income-tax Act, 1961.

Analysis:

Issue 1: Rejection of Application for Registration u/s.12AB
The assessee, a CSR funded institute, challenged the rejection of its application for registration u/s.12AB. The CIT(Exemption) issued a show cause notice (SCN) highlighting commercial nature of the activities, exceeding 20% receipts from commercial activities, and receiving CSR donations without registration. The assessee argued lack of opportunity to respond adequately to the queries. The Tribunal found that the assessee was deprived of a fair opportunity to present its case. The matter was remanded to the CIT(Exemption) for re-adjudication, emphasizing the need for a fresh order after affording a reasonable opportunity to the assessee.

Issue 2: Rejection of Application for Registration u/s.80G(5)
The rejection of the application for registration u/s.80G(5) mirrored the issues in the u/s.12AB appeal. The Tribunal applied the same reasoning as in the u/s.12AB appeal and remanded the matter to the CIT(Exemption) for re-adjudication. The Tribunal directed the CIT(Exemption) to pass a fresh order after providing a fair opportunity for the assessee to be heard.

Conclusion:
Both appeals by the assessee institute were allowed for statistical purposes, with the matters remanded to the CIT(Exemption) for re-adjudication. The Tribunal emphasized the importance of affording the assessee a fair opportunity to present its case and directed the CIT(Exemption) to pass fresh orders after due consideration.

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