Tribunal Orders Re-evaluation of Denied Registrations u/s 12AB and 80G, Ensuring Fair Assessment.

The ITAT allowed both appeals (ITA No. 1856/Mum/2024 and ITA No. 1857/Mum/2024) concerning the denial of registration under Section 12AB and recognition under Section 80G of the Act. The Tribunal directed the CIT(E) to reconsider the assessee's submissions and conduct necessary inquiries, emphasizing fairness and comprehensive evaluation of all relevant details. The orders, pronounced on 28/08/2024, provided relief to the assessee by mandating a fresh decision in accordance with the law.

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Issues:
1. Denial of registration u/s 12AB of the act and cancellation of provisional registration.
2. Not granting recognition u/s 80G (5) of the Act.

Analysis:
1. The first appeal (ITA No. 1856/Mum/2024) was against the rejection of registration u/s 12AB and cancellation of provisional registration by the Commissioner of Income Tax (Exemption) [CIT(E)]. The assessee contended that the rejection was based on incomplete consideration of details submitted on 06.02.2023 and subsequent rectification application. The delay in filing the appeal was explained by the assessee due to the pending rectification application. The Tribunal considered the peculiar facts of the case and admitted the appeal, directing the CIT(E) to reconsider the explanation furnished by the assessee and conduct any necessary enquiry for verification of activities for granting registration.

2. The second appeal (ITA No. 1857/Mum/2024) was regarding the rejection of recognition u/s 80G of the Act. Similar to the first appeal, the assessee claimed that necessary details submitted on 06.02.2023 were not considered. The Tribunal, based on similar reasons as the first appeal, allowed this appeal as well, directing the CIT(E) to reconsider the explanation provided by the assessee and decide the issue afresh in accordance with the law.

3. In both cases, the Tribunal allowed the appeals for statistical purposes, emphasizing the importance of considering all submissions made by the assessee before making a decision on registration and recognition applications. The Tribunal highlighted the need for fairness and proper consideration of all relevant details to prevent prejudice to the assessee. The orders were pronounced on 28/08/2024, granting relief to the assessee in both matters.

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