Ram Niwas Modi Charitable Society Vs CIT (E) (ITAT Jaipur)
ITAT Jaipur held that application for approval under section 80G inadvertently considered as application under section 12AB of the Income Tax Act is against principle of natural justice. Accordingly, matter restored back to CIT(E).
Facts- The applicant filed an online application in Form No. 10AB seeking approval under section 80G of the Income Tax Act. The said application was rejected by CIT(E). Being aggrieved, the present appeal is filed.
Conclusion- Held that here in this case record reveals that the assessee has applied for recognition u/s 80G of the Act but while considering that application ld. CIT(E) inadvertently considered that application for 12AB and recorded finding. But in fact, that issue was not referred to before him and the issue of registration of the assessee trust was not an issue as the same was already granted to the assessee. The ld. CIT(E) having noted that mistake tried to cover up that error passed another order on 03.04.2025 wherein he rejected the application u/s. 80G of the Act and thereby he has also cancelled the provisional registration. But we see from the record that the assessee was not confronted on the issue of his recognition u/s. 80G of the Act and therefore, having noted that the assessee is already granted registration u/s. 12AB of the Act the action of rejecting the recognition application is against the principles of natural justice and therefore, even though the assessee has filed detailed written submission on the merits of the dispute and various case laws, but we are of the considered view that the ld. CIT(E) without dealing with the assessee’ application u/s. 80G of the Act even on the merits of the dispute the matter required to be set aside to the file of the ld. CIT(E) to deal the application a fresh in accordance with the law as after 12AB the registration, being not disputed and the recognition u/s 80G is consequential, therefore, the Ld. CIT(E) shall decide the issue without prejudice to what has happened in this case in the past.
