Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, JABALPUR BENCH, JABALPUR
Before: SHRI NRS GANESAN & SANJAY ARORA
ORDER Per NRS Ganesan, JM:
This appeal of the assessee is directed against the order of Commissioner of Income Tax (Exemption), Bhopal dated 21.08.2020. Shri Rakesh Kumar Shukla, CA, the ld. representative for the assessee submitted that the assessee filed an application in Form-10A for registration under section 12AA of the Act. The Commissioner of Income Tax (Exemption), Bhopal posted the application for enquiry on 24.08.2020, however, without awaiting the response from the assessee passed the impugned order on 21.08.2020. Therefore, there is violation of Principle of Natural Justice.
On the contrary, ShriR.K. Singh, C.I.T.-DR submitted that the application of assessee in Form-10A was posted for hearing on 17.08.2020, thereafter, it was posted on 24.08.2020, since there was no response from the assessee, the Commissioner of Income Tax (Exemption) rejected the application of the assesse for non-compliance.
We have considered the rival submission on either side and perused the material available on record. This Tribunal is of the considered opinion that giving an opportunity to the assessee is not an empty formality, it has a great significance in judicial proceeding. Justice not only be done but it appears to be done. Having posted the application for hearing on 24.08.2020 and passing an order on 21.08.2020 itself is a violation of Principles of Natural Justice. Therefore, it is obvious that no opportunity was given to the assessee to represent the case before the Commissioner of Income Tax (Exemption). In view of the above, this Tribunal is unable to uphold the order of Commissioner of Income Tax (Exemption).
Accordingly, the impugned order of the Commissioner of Income Tax (Exemption) is set-aside and the entire issue of registration under section 12AA of the Act is remitted back to the file of Commissioner of Income Tax (Exemption). The Commissioner of Income Tax shall give sufficient opportunity to the assessee to produce the necessary material and to make representation and thereafter, decide the issue afresh in accordance with law by a speaking order.
With the above observation, the appeal of the assessee stands allowed for statistical purpose.
Order pronounced in the open court on December 28th 2020.