The Chandigarh Bench of the Income Tax Appellate Tribunal ( ITAT ) remanded the matter concerning the rejection of Shiv Manav Nirman Sansthan’s application for registration under Section 80G of the Income Tax Act, 1961, citing that the matter be reconsidered by the Commissioner of Income Tax (Exemptions) [CIT(E)] alongside the assessee’s pending Section 12A application to ensure both issues are addressed.
Shiv Manav Nirman Sansthan, the assessee, applied for registration under Section 80G of the Income Tax Act, 1961, to receive donations eligible for tax deductions. However, the CIT(E) rejected the application on the grounds that the assessee was not registered under Section 12A, which is a prerequisite for Section 80G approval.
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The assessee argued that its application under Section 12A of the Income Tax Act had already been remanded by ITAT Chandigarh in a prior case (ITA No.186/Chd/2023) for fresh consideration and was still pending before the CIT(E). The assessee requested that the current appeal concerning Section 80G also be remanded so both applications could be decided together.
The department did not oppose this request. The two-member bench, comprising Rajpal Yadav (Vice President) and Dr. Krinwant Sahay (Accountant Member) observed that Section 12A of the Income Tax Act application was pending and the rejection of the Section 80G of the Income Tax Act, 1961 application needed reassessment in coordination with the other case.
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The tribunal explained the importance of providing due opportunities to the assessee for a fair hearing. The tribunal set aside the impugned order, remanding the matter back to the CIT(E) for fresh adjudication on merit and per the law, ensuring both issues are resolved simultaneously.
The tribunal directed the CIT(E) to give the assessee adequate opportunities to address all concerns and ruled that the appeal be allowed for statistical purposes.
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