The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the case to the Commissioner of Income Tax (Exemption) [CIT(E)] for a fresh hearing, citing a violation of natural justice in the issuance of an ex-parte order.
Masani Meldi Sadhana Foundation, appellant-assessee,filed an appeal against the order of the CIT(E), dated 26.02.2024. The appeal presented several grounds, primarily challenging the issuance of an ex-parte order and the subsequent refusal of registration under section 12AB of the Act.
In the first ground, the assessee asserted that the CIT(E) had acted in error by issuing an ex-parte order, which they claimed was a gross violation of the principles of natural justice. The assessee highlighted that their application for registration demonstrated genuine interest, indicating that it was not merely a formality.
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As such, they requested that the order be declared illegal, null, and void due to this violation. They further sought an alternative remedy, asking for the order to be set aside so that they could have the opportunity to represent their case before the CIT(E).
The second ground focused on the CIT(E)’s decision to deny registration under section 12AB. The assessee contended that this refusal was erroneous and requested that the rejection be overturned, allowing their application for registration to be approved.
During the proceedings, the assessee’s counsel emphasized their readiness to comply with any requirements if given the chance, explaining that they had been unable to submit necessary documentation previously. The Departmental Representative (DR) expressed no objection to remitting the case back to the CIT(E) for a fresh review.
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The two member bench comprising Siddhartha Nautiyal(Judicial Member) and Dr.BRR Kumar(Accountant Member), determined that the case should be remanded back to the CIT(E) for a thorough de-novo examination, ensuring that the assessee would receive a fair opportunity to present their case.
In conclusion,the appeal was allowed for statistical purposes.
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