2025 (6) TMI 1524 - AT - Income Tax

Ex parte orders rejecting 12AB and 80G(5) registration set aside due to improper notice service

Nivedita Charitable Trust Versus CIT (Exemptions) Chandigarh

ITAT Chandigarh allowed appeals against CIT(E)'s ex parte orders rejecting applications for registration under sections 12AB and 80G(5). The Tribunal ... Rejection of Application for registration u/s 12A(1)(ac)(iii) and u/s 80G(5) - assessee has non-complied during the hearing before the CIT(E) - HELD THAT:- On perusal of the documents, we find that no notice was ever received by the assessee. Accordingly, the compliance could not be made by the assessee. AR requested that in the interest of justice the matter should be remanded back to the CIT(E) for fresh order. DR did not have any objection on this issue. Accordingly, this appeal is remanded back to the CIT(E) for fresh order. In our considered view the reasonable opportunity was not given to the assessee for submission of his evidence and documents. We are, therefore, of the view that in the interest of justice would be served if the impugned order is set aside and the matters are remitted back to the file of the ld. CIT(E) for consideration there of afresh. We are not expressing any views on the merits of the case so as to limit the proceeding before the ld. CIT(E). The Appellate Tribunal (ITAT Chandigarh) heard appeals against the ex parte orders of the Commissioner of Income Tax (Exemptions) [CIT(E)] rejecting the assessee's applications for registration under sections 12AB and 80G(5) of the Income Tax Act, 1961. The assessee contended that the CIT(E) passed the impugned orders without providing a reasonable opportunity of hearing and without proper service of notices, which the assessee did not receive.The Tribunal observed that no notice was received by the assessee, resulting in non-compliance. It held that 'reasonable opportunity was not given to the assessee for submission of his evidence and documents' and, in the interest of justice, set aside the impugned orders. The matter was remanded to the CIT(E) for fresh consideration, expressly stating it was 'not expressing any views on the merits of the case' and emphasizing that the assessee must be diligent in complying with future notices and be afforded a reasonable opportunity of hearing.Both appeals were allowed for statistical purposes, with ITA No. 454/Chandi/2024 serving as the lead case and the decision applied mutatis mutandis to ITA No. 453/Chandi/2024. The order was pronounced on 23.04.2025.