The Sanskriti Society for Learning, along with its associated entities based in C.R. Park, New Delhi, filed six appeals against the decisions of the Commissioner of Income Tax (Exemption) which rejected their applications for registration under section 12AA and approval under section 80G of the Income Tax Act.
The primary issue in these appeals was the simultaneous rejection of registration and tax exemption approvals within a single combined order, which was contested for lacking adequate procedural clarity and separate consideration for each statutory provision.
During the hearing, no representative for the appellants was present, but the CIT-DR defended the original decision. The tribunal, led by Shri Shamim Yahya and Shri Chandra Mohan Garg, identified procedural shortcomings in the Commissioner’s decision-making process, particularly the combination of two distinct legal issues into one order without adequate hearing. Consequently, the tribunal remanded the issues back to the CIT (Exemption) with instructions to consider each application separately and ensure a fair hearing.
The decision to remand the case back for a separate review of each application underscores the tribunal’s emphasis on adhering to procedural justice and the necessity of distinct orders for different legal provisions. This case serves as a precedent for how tax authorities should handle applications for registrations and exemptions, ensuring that legal and procedural standards are maintained to safeguard the rights of the assessees.
Sanskriti Society vs. CIT (Exemption): Denial of Registration and Tax Exemptions
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