This review explores the tribunal decision in the case of FMC Medical Research Training & Science Organisation vs. CIT(Exemption), where significant legal points were deliberated concerning the denial of registration under sections 12AA and 80G of the Income Tax Act, 1961.
The appellant, FMC Medical Research Training & Science Organisation, faced rejection of its applications for registration under sections 12AA and 80G by the Commissioner of Income-tax (Exemption), New Delhi. The primary basis for the rejection was the non-appearance of the appellant’s representative due to overseas travel during the scheduled hearing dates.
The main issue revolved around the procedural fairness in handling the appellant’s request for adjournments and the substantive review of the charitable activities purportedly carried out by the organization. The ITAT found that the appellant was not given a fair opportunity to present its case due to the absence of its main representative and thus decided to restore the matter back to the CIT(Exemption) for a fresh decision.
This case highlights the importance of procedural fairness in the administrative processes and the need for charitable organizations to ensure proper representation during critical legal proceedings. The decision underscores the tribunal’s readiness to ensure justice through procedural fairness.
The final decision was pronounced in the open court on May 24, 2023, restoring the appeals for a fresh review by the CIT(Exemption).
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