GURUDWARA LANGAR SAHIB PARBHANDHAK COMMITTEE,SANGRUR vs. CIT(EXEMPTION), CHANDIGARH

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ITA 1120/CHANDI/2019Status: DisposedITAT Chandigarh16 October 2020AY 2018-193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the principle of natural justice ('audi alteram partem') mandates that no one should be condemned unheard. Therefore, the ex-parte order was set aside.

What were the facts?

The assessee applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application ex-parte after issuing multiple questionnaires and a final notice for hearing which the assessee claimed not to have received.

What were the issues?

Whether the CIT(E) was justified in rejecting the application for registration ex-parte without providing a proper and reasonable opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

आदेश/Order

PER N.K. SAINI, VICE PRESIDENT

This is an appeal by the assessee against the order dt. 12/06/2019 of Ld. CIT(E), Chandigarh.

2.

Following grounds have been raised in this appeal:

1.

That the impugned order is bad both on facts and law.

1.

2. That the Ld. CIT(Exemptions) has wrongly and illegally rejected the application u/s 12AA on irrelevant grounds and failed to consider the detailed reply of the questionnaire containing 36 queries. 3. That the Ld. CIT(Exemptions) has wrongly and illegally passed the ex-party order without a proper and reasonable opportunity of hearing. 4. That the appellant craves permission to add, amend, elucidate any ground of appeal at the time of hearing.

3. The main grievance of the assessee vide Ground No. 3 relates to the exparte order passed by the Ld. CIT(E) without proper and reasonable opportunity of being heard given to the assessee.

4.

Facts of the case in brief are that the assessee moved an application in Form No. 10A electronically on 24/12/2018 seeking registration under section 12AA of the Income Tax Act, 1961 (hereinafter referred to as ‘Act’).

5.

The Ld. CIT(E) asked the assessee about the activity and object vide Questionnaire dt. 08/02/2019 issued through online portal. The Ld. CIT(E) again asked the assessee on 05/03/2019 to provide clarification to the queries raised. The Ld. CIT(E) observed that the assessee furnished the reply through ITBA on 06/03/2019. He again asked the assessee to furnish further clarification by 27/05/2019 through the questionnaire claimed to be sent to the assessee on 21/05/2019 through ITBA. Since there was no compliance the Ld. CIT(E) rejected the application moved by the assessee.

6.

Now the assessee is in appeal.

7.

Ld. Counsel for the Assessee submitted that the notice for hearing on 27/05/2019, was not received by the assessee, therefore the Ld.CIT(E) was not justified in rejecting the application moved by the Assessee, exparte.

8.

In her rival submissions the Ld. CIT DR strongly supported the impugned order passed by the Ld. CIT(E) and submitted that the assessee did not cooperate and had not availed opportunity of being heard granted by the Ld. CIT(E). So there was no alternative except to reject the application moved by the assessee for Registration under section 12AA of the Act.

9.

We have considered the submissions of both the parties and perused the material available on the record. In the present case the main contention of the assessee is that the notice dated 21/05/2019 for hearing on 27/05/2019 was not served upon the assessee. It is well settled that nobody should be condemned, unheard as per the maxim, “audi alteram partem”.

10.

We therefore keeping in view the principle of natural justice deem it appropriate to set aside this case back to the file of Ld. CIT(E) to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee.

11.

In the result, appeal of the Assessee is allowed for statistical purposes.

(Order pronounced in the open Court on 20/10/2020 )

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