The case involves Kayantar Foundation’s appeal against the CIT (Exemption)’s rejection of their application for exemption under section 12A of the Income Tax Act. This rejection was primarily due to the foundation’s alleged failure to fully respond to a questionnaire, which was a critical part of the exemption process.
The Tribunal considered the foundation’s appeal, which argued that the CIT (Exemption) did not provide an adequate opportunity to address the issues raised in the questionnaire. The foundation contended that they had the necessary documentation to support their eligibility for the exemption, which they could have demonstrated if given a proper chance.
The Tribunal noted that the CIT (Exemption)’s decision was based on an incomplete examination of the foundation’s responses. It emphasized the importance of giving the applicant a fair opportunity to present their case and to ensure that all relevant materials are considered before making a decision.
The Tribunal set aside the CIT (Exemption)’s order and remanded the case back for a fresh evaluation. This decision highlights the judiciary’s role in ensuring that administrative decisions are made fairly and that applicants for tax exemptions are given a reasonable chance to present their case.
The decision was pronounced on June 28, 2023, offering Kayantar Foundation another opportunity to prove their eligibility for the tax exemption.
Case Review: Kayantar Foundation vs. CIT on Exemption Rejection, ITA No.2700/DEL/2022
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