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2024 (3) TMI 527 - AT - Income TaxRegistration u/s 80G(5) - application rejected on the ground that the assessee trust is involved in providing benefit to any particular religion, caste or community - argument of the Ld. AR was that the assessee society was granted with 12A registration which remains continue even after denial of assessee's request for 80G registration, same has not been withdrawn even after the various allegations - Name of the assessee is not matching with the other documents of the society - HELD THAT:- As pointed out by the Ld. CIT(E) qua the name of the assessee association for which the assessee association has already taken necessary suo moto steps for correction in the name of the assessee association in the PAN data vide their application i.e. before the date of their application for registration u/s 80G(5) therefore, the bonafide of the assessee association cannot be doubted and the difference in name of the association shall be treated as only inadvertent mistake on the part of the assessee. Violation of FCRA provisions - As per order of Ld. CIT(E) certain documents regarding funds received by the assessee, which were not provided by the assessee before the Ld. CIT(E), the assessee was found to be on default and society is indulged in convincing illiterate and Economically Weaker Section for conversion of their religion in the nearby villages - Rejection on the basis of the report of the inspector and ITO(E), which was apparently not confronted to the assessee however, the same was one of the basis for rejection of the application of the assessee. Anything relied upon by the revenue authorities in order to arrive at any adverse inference against the assessee and the same is not even confronted to the assessee to show cause or to explain about, such action of the revenue authorities is not permissible under the settled principle of law which is against the principle of natural justice. Thus as assessee had not submitted certain detail sought by the Ld. CIT(E) and the Ld. CIT(E) also had not show caused the assessee regarding the information pertaining to dubious activities of the assessee association on the basis of inspectors report without confronting the assessee with such report, it shows that there was violation of principle of natural justice. Consequently, we are left with no option but to restore these matter back to the files of Ld. CIT(E) to consider the explanations of the assessee - Appeal of the assessee is partly allowed as stated.
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