Saibaba Bahuuddheshiya Sevabhavi Sanstha Vs CIT (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune has remanded the case of Saibaba Bahuuddheshiya Sevabhavi Sanstha back to the Commissioner of Income Tax (CIT) for fresh adjudication regarding its registration under Section 12A and approval under Section 80G of the Income Tax Act, 1961. The NGO had appealed against the CIT’s order rejecting its application for registration and tax exemption, arguing that it was not given a fair opportunity to present its case. The tribunal, while not ruling on the merits of the case, directed the CIT to reconsider the matter after providing the NGO with a reasonable chance to respond.
The dispute arose when the NGO applied for registration under Section 12A(1)(ac)(iii) and approval under Section 80G(5) in March 2024. The CIT issued notices requesting further information, to which the NGO initially responded. However, it failed to submit additional documents before the final hearing. Consequently, the CIT rejected the application and revoked the provisional registration granted in 2021. The NGO contended that it was unable to respond due to unavoidable circumstances and sought another opportunity to present its case.
The ITAT observed that the NGO had responded to earlier notices, and its failure to comply with the final notice should not have led to outright rejection without granting another opportunity. ITAT Pune found that denying registration without allowing the NGO to explain itself was unjustified.
