Case Law Details
Manav Nirman Sansthan Vs CIT (Exemption) (ITAT Chandigarh)
Income Tax Appellate Tribunal (ITAT) Chandigarh recently ruled on an appeal filed by Manav Nirman Sansthan against the order dated 12.09.2023 by the Commissioner of Income Tax (Exemption), Chandigarh (CIT(E)). The CIT(E) had rejected the assessee’s application for registration under section 80G of the Income Tax Act, 1961, primarily because the organization was not registered under section 12A of the Act at the time of the order. The assessee’s counsel pointed out that the registration application under section 12A was already pending before the CIT(E), Chandigarh, following a remand by the ITAT in an earlier case (ITA No.186/Chd/2023). Given this, the counsel requested that the matter related to the 80G registration also be remanded to the CIT(E) for fresh consideration.
The ITAT, after reviewing the facts and noting that the issue of the 12A registration was still pending before the CIT(E), agreed with the counsel’s request. It observed that both issues should be considered together for consistency and fairness in the proceedings. Consequently, the ITAT set aside the impugned order and remitted the matter back to the CIT(E), directing that the application for 80G registration be decided afresh, with due opportunity for the assessee to present their case. The decision was taken in accordance with the law, ensuring all legal avenues remain available to the assessee. The appeal was thus allowed for statistical purposes, and the matter was sent back for further consideration.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
Appeal in this case has been filed by the Assessee against the order dated 12.09.2023 passed by ld. Commissioner of Income Tax (Exemption), Chandigarh [ herein referred to as ‘CIT(E’) ]. It is related to rejection of application by CIT (E), Chandigarh for registration u/s 80G of the Income Tax Act, 1961 (in short ‘the Act’). The rejection has been made by ld. CIT (E) on the sole ground that as on the date of order, the Assessee was not registered u/s 12A of the Act.
2. During the proceedings before us, Ld. Counsel of the Assessee has submitted that the Chandigarh Bench of ITAT Chandigarh in ITA No.186/Chd/2023 has already remanded the rejection of the Assessee’s registration application u/s 12A to the ld. CIT (E), Chandigarh and the matter is pending before the ld. CIT (E), Chandigarh. So, a request is made to remand this issue also to the file of the CIT (E).
3, The ld. DR has no objection to the above request of the ld. Counsel for the Assessee.
4. We find that since the matter of Assessee’s Registration application u/s 12A of the Act is lying with CIT (E), Chandigarh, therefore, we are of this considered view that this appeal should also be remanded back to the CIT( E), Chandigarh so that both the issues can be taken up together. Accordingly, the impugned order is set aside and the matter is remitted to the file of the CIT(E), to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(E). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
5 In the result, the appeal stands allowed for statistical purposes.
Order pronounced on 03.12.2024.
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