2025 (5) TMI 2041

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.... and issue in the present appeals were heard together. ITA No.6277/Mum/2024 is taken as the lead case. The ground raised by the assessee in this appeal are as follows: - "1. (a). The order passed u/s. 12AB of the Act is invalid, non-est and bad in law. (b). The Ld. CIT(Exemptions) erred in law and facts in rejecting the application u/s 10AB without granting the adequate opportunity of being heard and merely on technical glitch. 2. All the above grounds are independent and without prejudice to each other. 3. The Appellant craves leave to add, amend, delete and modify the above grounds of appeal." 2. Briefly stated, the facts are that the assessee is a charitable trust to develop, establish, promote, ....

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....ce of the assessee's application, which is tabulated as under:- Sr. No. Issue Date 1. Trust incorporated 29/04/2022 2. Activity started 16/09/2022 3. Provisional registration granted 22/06/2022 4. First Application filed for permanent regn. 13/03/2023 5. First Application rejected 25/09/2023 6. Second Application filed for permanent regn. 20/03/2024 7 Second Application rejected 27/09/2024 The Ld.AR stated that the assessee previously filed an application, but discrepancy found in the trust deed by the Ld.CIT(E). Accordingly, the petition was duly rejected. Finally, the assessee amended the specific provision in the trust deed and filed second application on 20/03/20....

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..... Despite this error, no show- cause notice was issued by the Ld. CIT(E) highlighting the discrepancy in the application. It is observed that the assessee was in a position to correctly quote the applicable section while submitting the application; however, due to technical constraints in the online portal, the correct section could not be selected. The application was ultimately rejected by the Ld. CIT(E) solely on this procedural ground, without adjudicating any substantive issue or issuing a show-cause notice to the assessee in respect thereof. This, in our considered opinion, renders the rejection order unsustainable in law, as it suffers from a violation of the principles of natural justice. The Ld. DR could not produce any show-cau....