Cyberverse Foundation Vs CIT (ITAT Bangalore)
Fresh U/s 12AB & 80G Applications Must Be Examined Independently; Earlier Rejection Does Not Bar Fresh Consideration – ITAT Bangalore
The Bangalore ITAT held that a fresh application for registration under sections 12AB and 80G cannot be rejected merely because an earlier application had been rejected and the earlier order was not challenged before the Tribunal. The Tribunal observed that the principle of res judicata does not apply to income-tax proceedings, and therefore each application has to be independently examined on the basis of the facts, documents and material placed on record at the time of the fresh application.
In the present case, the CIT(E) rejected the assessee’s fresh Form 10AB application solely by relying upon the earlier rejection order, without independently evaluating the current objects, activities and supporting documents. The assessee also contended that it had not received the notices issued by the CIT(E), resulting in its inability to furnish a response. The Tribunal found that the impugned order lacked independent application of mind, was mechanical in nature, and failed to consider the merits of the fresh application.
Accordingly, invoking the principles of natural justice, the Tribunal set aside the orders rejecting registration under sections 12AB and 80G and restored the matter to the file of the CIT(E) with a direction to examine the fresh application afresh, consider the documents and explanations furnished by the assessee, provide a reasonable opportunity of being heard, and thereafter pass a reasoned speaking order in accordance with law. The appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
