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2024 (4) TMI 95 - HC - Income TaxDenial of registration u/s 12AB - filing Form-10A in wrong section code - allegation of Denial of principles of natural justice - HELD THAT - Managing Trustee of Parmeswari Bai Memorial Trust has furnished explanation sought for regarding Form-10A. Though, the explanation is stated to have been furnished to the Commissioner of Income Tax (Exemption), Income Tax Department, Hyderbad, the same has not been considered in its proper prospective by assigning reason, which is one of the essential facets of principles of natural justice. However, vide order passed by the CIT (Exemption), Hyderabad, the application of the Petitioner-Assessee for registration under Section 12AB of the Income Tax Act stood rejected. In the circumstances, the order passed being without reason as is apparent from the record, stands set aside and it is directed that the application for registration u/s 12AB is restored for reconsideration by the CIT (Exemption), Hyderabad.
Issues involved:
The issue involved in this case is the rejection of the petitioner's application for registration under Section 12AB of the Income Tax Act due to filing Form-10A in the wrong section code for the Assessment Year 2022-23. Details of the Judgment: Issue 1: Rejection of application for registration under Section 12AB The petitioner's application for registration under Section 12AB was rejected due to filing Form-10A in the wrong section code for the Assessment Year 2022-23. The impugned order dated 16.03.2023 rejected the application without providing a reason, which goes against the principles of natural justice. The Managing Trustee of Parmeswari Bai Memorial Trust had furnished an explanation regarding Form-10A as per Annexure-7 Series dated 20.12.2022, but this explanation was not considered properly by the Commissioner of Income Tax (Exemption), Hyderbad. Therefore, the order dated 16.03.2023 stands set aside, and the application for registration under Section 12AB is restored for reconsideration by the Commissioner of Income Tax (Exemption), Hyderbad with a direction to provide a reasonable opportunity of hearing to the assessee before making a decision. Conclusion: The writ petition is disposed of with the observation and direction mentioned above.
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