9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (6) TMI 668 - AT - Income TaxRegistration u/s 12AA and recognition u/s 80G denied - Whether order was to be passed by learned CIT(E) within 6 months from the end of the month in which the application was filed by the assessee? - HELD THAT - As per sub-section 2 of section 12AA learned CIT(E) was required to pass the order under section 12AA of the Act within 6 months from the end of month in which the request was made by the assessee for Registration under section 12AA of the Act and therefore, the last date for passing the order under section 12AA of the Act was 30.11.2019 and learned CIT(E) has taken more than 5 month to issue the only notice dated 29.10.2019. Under these facts, we find force in the submissions of learned AR of the assessee that reasonable opportunity of being heard was not provided by learned CIT(E) and therefore, we set aside both the orders of learned CIT(E) and restore the matter back to his file for a fresh decision, after providing reasonable opportunity of being heard to the assessee. In view of this decision, we make no common on merit. Appeals of the assessee are allowed for statistical purposes.
Issues:
1. Registration under section 12AA of the Income Tax Act, 1961. 2. Recognition under section 80G of the Income Tax Act, 1961. Registration under section 12AA: The assessee filed a request for registration under section 12AA on 21.05.2019. However, the notice from the CIT(E) was issued on 29.10.2019 for compliance on 08.11.2019, leading to the order being passed on 28.11.2019. The AR of the assessee argued that the delay in providing a notice and granting a hearing violated the provisions of the Act, as the order should have been passed within 6 months of the application. The Tribunal agreed, noting that the CIT(E) failed to provide a reasonable opportunity for the assessee to be heard. Consequently, the Tribunal set aside the order and remanded the matter back to the CIT(E) for a fresh decision after ensuring a fair hearing for the assessee. Recognition under section 80G: Similar to the registration request, the assessee's request for recognition under section 80G was also made on 21.05.2019. The notice for this request was issued on 05.11.2019, with the hearing scheduled for 08.11.2019, and the order was passed on 28.11.2019. The Tribunal found that the CIT(E) did not provide a reasonable opportunity for the assessee to be heard in this matter as well. Therefore, the Tribunal set aside the order related to section 80G and directed the CIT(E) to reconsider the issue after affording the assessee a fair hearing. Conclusion: Both appeals by the assessee were allowed for statistical purposes, with the Tribunal emphasizing the importance of providing a fair opportunity for the assessee to be heard before passing orders related to registration and recognition under the Income Tax Act, 1961. The Tribunal's decision to set aside the orders and remand the matters back to the CIT(E) for fresh decisions was based on the failure to grant adequate hearing opportunities to the assessee, as required by law.
|
