Jain Mahasabha Vs CIT (Exemption) (ITAT Delhi)
ITAT Delhi held that cancellation of provisional registration u/s. 12A and 80G of the Income Tax Act as well as denial of final registration by CIT(E) without considering reply furnished by the assessee is violative of principles of natural justice. Accordingly, matter remitted back to file of CIT(E).
Facts- The assessee is registered under Society Registration Act, 1860 on 14.08.1989 and claimed to be engaged in providing relief to the poor and needy and fulfilling the objects of the society as mentioned in the Memorandum of Association of Jain Mahasabha, Delhi. The asessee applied for provisional registration u/s. 12A & 80G of the Act vide application dated 31.03.2023 in Form No.10A and has been granted provisional registration in Form No.10AC on 07.04.2023 u/s. 12A sub-section (1) clause (ac) sub-clause (vi) of the Act as well as under the first proviso of clause (iv) of section 80G(5) of the Act. This provisional registration is stated to be granted from Assessment Year 2023-24 to 2025-26.
The assessee applied for regular registration in Form 10AB on 27.09.2023 and 30.09.2023 respectively i.e. within six months of the commencements of the activities. CIT(Exemption) however, questioned the genuineness of the assessee’s activities and denied regular registration as well as cancelled the provisional registration granted u/s. 12A & 80G of the Act. Being aggrieved, the present appeal is filed.
