Case Law Details
Kalyan Riverside Charitable Foundation Vs CIT Exemption Pune (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Mumbai recently addressed the appeals of Kalyan Riverside Charitable Foundation against the orders related to their registration under sections 12A and 80G of the Income Tax Act. The decision illuminates the critical importance of providing a reasonable opportunity of being heard to an assessee.
Analysis: The appeal emerges from the Commissioner of Income Tax Exemption’s actions where the Foundation’s application for registration was rejected. Despite the Appellant being provided two notices to submit necessary details and evidence to support its claim, no compliance was observed. This non-compliance prompted the Commissioner to question the genuineness of the Foundation’s activities, leading to the rejection of the application.
The tribunal, after careful consideration, highlighted the pivotal aspect of ‘opportunity’. In light of the circumstances, ITAT decided to remand the case back to the Commissioner. This action aims to provide the Appellant another chance at presenting their case, supporting materials, and explaining their activities, reinforcing the essence of a fair hearing.
Furthermore, the decision on the denial of registration under section 80G, which inherently relies on the grant of registration under section 12, was also remanded for reconsideration.
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