Relief to Saibaba NGO from Natural Justice Violation as ITAT remands S.80G Trust Registration for Fresh Adjudication [Read Order]
The tribunal held that the principles of natural justice were violated, as the assessee was not granted a fair opportunity to present its case
![Relief to Saibaba NGO from Natural Justice Violation as ITAT remands S.80G Trust Registration for Fresh Adjudication [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/02/ITAT-ITAT-Pune-Saibaba-NGO-tax-case-Relief-to-Saibaba-NGO-Natural-Justice-Violation-TAXSCAN.jpg "Relief to Saibaba NGO from Natural Justice Violation as ITAT remands S.80G Trust Registration for Fresh Adjudication [Read Order]")
In a relief to Saibaba Bahuuddheshiya Sevabhavi Sanstha, the Income Tax Appellate Tribunal (ITAT), Pune Bench, has set aside the Commissioner of Income Tax (Exemption) [CIT(E)], Pune’s orders rejecting the NGO’s Section 80G and Section 12A registration applications. The tribunal held that the principles of natural justice were violated, as the assessee was not granted a fair opportunity...
In a relief to Saibaba Bahuuddheshiya Sevabhavi Sanstha, the Income Tax Appellate Tribunal (ITAT), Pune Bench, has set aside the Commissioner of Income Tax (Exemption) [CIT(E)], Pune’s orders rejecting the NGO’s Section 80G and Section 12A registration applications. The tribunal held that the principles of natural justice were violated, as the assessee was not granted a fair opportunity to present its case. The matter has now been remanded for fresh adjudication.
The Nashik-based NGO, engaged in charitable activities, had applied for registration under Section 12A(1)(ac) and approval under Section 80G(5) of the Income Tax Act, 1961. The applications were filed on March 14, 2024, and March 15, 2024, respectively.
How to Audit Public Charitable Trusts under the Income Tax Act Click Here
The CIT(E), Pune, had initially issued notices requesting certain documents to verify the genuineness of the activities and legal compliance. The NGO responded to the initial notices, but failed to comply with a final notice, following which the CIT(E) rejected both applications and also canceled its provisional 12AB registration granted in 2021. The NGO appealed to the ITAT, arguing that it was not given a fair opportunity to present its case.
The ITAT Bench, comprising Judicial Member Shri Vinay Bhamore and Accountant Member Shri Manish Borad, observed that the assessee had complied with earlier notices but was unable to respond to the final notice due to unavoidable circumstances. The tribunal held that the CIT(E) should have granted at least one more opportunity before rejecting the application outright.
The tribunal observed that the rejection was primarily due to procedural lapses, not substantive issues with the charitable activities of the NGO.
How to Audit Public Charitable Trusts under the Income Tax Act Click Here
Natural justice principles require that an assessee be given a fair chance to explain its case.
Since Section 12A registration is linked to Section 80G approval, both matters should be reconsidered together.
Accordingly, the ITAT set aside the rejection orders and directed the CIT(E) to reconsider the applications afresh. The NGO has also been instructed to submit all necessary documents.
To Read the full text of the Order CLICK HERE
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