Notice Erroneously Issued in name of Bangalore Medical College Instead of Bangalore Medical College Alumni Association: ITAT Remands Matter [Read Order]

Bangalore Medical College Alumni Association (assessee), a charitable trust, applied for approval under Section 80G through Form 10AB on 05.03.2024. The CIT(E) issued notices, requiring the assessee to appear and submit documents to verify the genuineness of the trust’s activities and compliance with the conditions under Section 80G of the Income Tax Act.

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The CIT(E) alleged that the assessee failed to respond to the notices or submit the required documents. The CIT(E) rejected the application for approval under Section 80G of the Income Tax Act.

Aggrieved by the CIT(E)’s order, the assessee filed an appeal before the ITAT. The counsel for the assessee argued that the rejection order and notices were erroneously issued in the name of “Bangalore Medical College” instead of “Bangalore Medical College Alumni Association.”

The counsel further submitted that another entity, Bangalore Medical College Development Trust, was involved in parallel Section 80G proceedings before the same CIT(E), leading to confusion.

The counsel contended that the procedural irregularity of issuing notices in the incorrect name caused confusion and prevented the assessee from responding effectively. The counsel requested one more opportunity for the assessee to present the case before the CIT(E).

The two-member bench comprising Laxmi Prasad Sahu (Accountant Member) and Keshav Dubey (Judicial Member), observed that the CIT(E) rejected the application due to the assessee’s failure to respond to notices and submit documents.

The tribunal noted that the notices and rejection order were issued in the incorrect name, leading to procedural irregularities. The tribunal held that, in the interest of justice and fair play, the assessee deserved another opportunity to present the case.

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The tribunal remanded the matter to the CIT(E) for fresh adjudication, directing that a reasonable opportunity of being heard be granted to the assessee. The tribunal also directed the assessee to submit all necessary documents, financials, and reports promptly to support its claim.

The appeal of the assessee was partly allowed for statistical purposes.

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