Aanand Achal Guru Foundation Vs CIT (Exemption) (ITAT Pune)
Pune ITAT Sets Aside Rejection of 12AB Registration and 80G Approval, Holding Opportunity of Hearing Must Be Real and Effective
The Pune ITAT held that the rejection of applications for regular registration under section 12AB and approval under section 80G solely on account of non-compliance with a subsequent notice was unsustainable, where the trust had partly complied with the initial notice and was deprived of an effective opportunity to furnish the remaining documents. The Tribunal noted that the charitable trust, engaged in activities relating to education, religion and medical relief, had responded to the first notice issued by the CIT (Exemptions), but failed to reply to the second notice as it inadvertently remained unnoticed. Relying on the Patna High Court’s decision in St. Paul’s Anglo Indian Education Society, the Tribunal reiterated that the principles of natural justice require a real, reasonable and effective opportunity of hearing, and not a mere paper formality. Holding that the CIT (Exemptions) had afforded insufficient opportunity before rejecting the applications, the Tribunal set aside the impugned orders and remanded the matters for de novo consideration, directing the CIT (Exemptions) to provide a meaningful opportunity to the trust to produce the necessary evidence and decide the applications afresh in accordance with law.
