ITAT Restores 80G Application of Assessee: Rejection Held Premature and in Violation of Natural Justice [Read Order]
The Tribunal asserted that the procedural lapses, notably denial of opportunity, cannot be brushed aside when assessing applications under beneficial provisions like Section 80G
![ITAT Restores 80G Application of Assessee: Rejection Held Premature and in Violation of Natural Justice [Read Order]](https://images.taxscan.in/h-upload/2025/06/10/2041913-80g-application-itat-taxscan.webp "ITAT Restores 80G Application of Assessee: Rejection Held Premature and in Violation of Natural Justice [Read Order]")
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has restored the matter of assessee Bhatt Mewada Brahm Samaj to the file of the Commissioner of Income Tax (Exemption), Ahmedabad [CIT(E)] for fresh adjudication. The case pertains to an application filed by the assessee under Section 80G(5)(iii) of the Income Tax Act, 1961, for permanent approval, following an...
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has restored the matter of assessee Bhatt Mewada Brahm Samaj to the file of the Commissioner of Income Tax (Exemption), Ahmedabad [CIT(E)] for fresh adjudication. The case pertains to an application filed by the assessee under Section 80G(5)(iii) of the Income Tax Act, 1961, for permanent approval, following an earlier provisional registration under the same provision. The trust has been engaged in charitable activities since January 28, 2010, focusing on work in the fields of education, healthcare, youth development, and environmental awareness.
As per the order dated November 21, 2024, passed by the CIT(E), the assessee’s application under Form 10AB was rejected due to non-compliance with the notices and failure to submit the requisite documentation. The cancellation of the earlier provisional registration accompanied the rejection. However, the appellant submitted that the trust had filed an online adjournment request on 13 November 2024, seeking time until 28 November 2024 to make its submissions. Despite this request being made well in advance, the rejection order was passed prematurely before the adjournment deadline had even expired. The appellant contended that it was denied a proper opportunity to present its case and that such action was contrary to the principles of natural justice.
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Aggrieved by the rejection and cancellation, the assessee approached the ITAT, filing an appeal against the order of the CIT(E). During the hearing, the assessee’s Authorised Representative asserted that the trust was not given a fair chance to submit relevant documentation and that the rejection order was passed without considering the pending adjournment request. On the other hand, the Departmental Representative argued that the assessee had failed to substantiate compliance with the notices issued and had not provided adequate proof of submission of documents before the CIT(E).
After carefully examining the facts of the case, the Tribunal found merit in the assessee’s contention. The bench comprising Dr. B.R.R. Kumar, Vice President, and T.R. Senthil Kumar, Judicial Member, held that the interests of justice were not served by the premature rejection of the trust’s application. The Tribunal asserted that the request for adjournment was made on record and that the CIT(E) had proceeded to pass an order without waiting for the requested date, thereby depriving the trust of a reasonable opportunity to be heard.
The bench observed that the CIT(E) ought to have awaited the date mentioned in the adjournment request and that the denial of this opportunity amounts to a violation of the fundamental principles of natural justice.
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The Tribunal set aside the order and restored the matter to the file of the CIT(E) for fresh adjudication. The CIT(E) has been directed to consider the submissions made by the trust and pass a reasoned and speaking order after granting a proper opportunity of hearing. As a result, the appeal was allowed for statistical purposes.
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