Sanskriti Foundation for Learning, New Delhi, faced a significant legal hurdle when its applications for registration under section 12AA and approval under section 80G of the Income Tax Act were collectively denied by the Commissioner of Income Tax (Exemption). This analysis explores the tribunal’s decision to remand the case back for separate hearings.
The case revolves around six connected appeals filed by three related entities under the umbrella of Sanskriti Foundation. Each entity, including Sanskriti Foundation for Learning, challenged the combined orders denying both their 12AA and 80G applications in a single consolidated order, which they argued violated procedural fairness.
The appellants argued that the CIT (Exemption) erred in issuing a combined order for registration and tax exemption applications without providing adequate opportunities for the appellants to be heard separately on each issue. This procedural mishandling formed the basis of their appeals.
The tribunal, comprised of Shri Shamim Yahya and Shri Chandra Mohan Garg, noted the procedural irregularities and the absence of individual hearings for the separate issues. They concluded that justice would best be served by remanding the matters back to the CIT (Exemption) for fresh consideration, with instructions to conduct separate hearings and provide the appellants a fair chance to present their cases.
This case underscores the importance of procedural justice in tax exemption and registration processes, highlighting the need for tax authorities to adhere to legal standards that ensure fair and distinct consideration of each application. The outcome of the remanded proceedings will be pivotal for the future operations of the Sanskriti Foundation for Learning and its associated entities.
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