ITAT Sets Aside Rejection of 12AB Registration to Ujjain-Based NGO: Remands Matter to CIT (Exemption)

In a relief to an Ujjain-based NGO, the Income Tax Appellate Tribunal (ITAT) has set aside an order that had rejected its application for registration under Section 12AB of the Income Tax Act. The tribunal has remanded the matter back to the Commissioner of Income Tax (Exemptions) for a fresh consideration. The ITAT found that the rejection was based on a minor procedural lapse by the NGO and that the authorities had not provided an adequate opportunity for the NGO to rectify the error. The tribunal held that a registration that provides a substantive tax benefit should not be denied on purely procedural grounds without giving the applicant a fair chance. By remanding the case, the ITAT has ensured that the NGO's application will be reconsidered on its merits, upholding the principles of natural justice.