SHRI NARAYAN TRUST,SRINAGAR vs. CIT(EXEMPTION), LUCKNOW

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ITA 4874/DEL/2018Status: DisposedITAT Dehradun18 December 20204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) did not grant a proper opportunity to the applicant to satisfy the queries. Therefore, the matter was restored to the CIT(Exemptions) for a fresh hearing.

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The CIT(Exemptions) rejected the application for non-appearance on the hearing date and non-compliance with queries. The assessee contended that a reasonable opportunity was not provided.

What were the issues?

Whether the CIT(Exemptions) erred by rejecting the registration application without providing a reasonable opportunity to the assessee, violating principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN CIRCUIT BENCH: DEHRADUN

Before: SHRI R. K. PANDA & MS SUCHITRA KAMBLEShri Narayan Trust

Hearing: 18.12.2020Pronounced: 18.12.2020

PER SUCHITRA KAMBLE, JM

1.

This appeal is filed by the Appellant Trust/Society against the order dated 25/04/2018 passed by CIT(Exemption), Lucknow under Section 12AA(1)(b)(ii) of the Income Tax Act, 1961.

2.

The grounds of appeal are as under:-

“I. That the Ld. CIT(Exemptions) has erred in law and on facts in rejecting the application for grant of registration under section 12AA of the Income Tax Act 1961 (‘the Act’)

II. That the Ld. CIT(Exemptions) erred in law and on facts in passing an order, merely on the non-appearance by the Appellant on the very first date of the hearing without giving proper opportunity to the Appellant to explain the circumstances under which non-compliance occurred.

III. That the impugned order passed by the Ld. CIT (Exemptions), dated 25 April 2018 u/s 12AA of the Act is contrary to the principles of natural justice and equity and deserves to be quashed.

IV. That the Ld. CIT(Exemptions) while rejecting the application for grant of registration sought by the Appellant vide order dated 25 April 2018 has mis- directed himself in not considering the facts on record and failed to appreciate that the objects of the society are only towards ‘charitable purposes’ as defined in section 2(15) of the Act.

V. The Appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”

3.

The applicant society/trust filed an application for registration u/s 12A(a) of the Income Tax Act, 1961 on 11. 12.2017 with the Commissioner of Income Tax (Exemptions), Lucknow. The CIT(Exemption) vide letter dated 22.03.2018 called for specific queries regarding the application for registration u/s 12A for compliance on 25.04.2018 which was delivered to the applicant society/trust on 27.03.2018 as confirmed by the India Post. However, the applicant could not appear on the date i.e. 25.04.2018 and could not comply with the queries put up by the CIT(Exemptions). The CIT(Exemptions) vide order dated 25.04.2018 rejected the application for registration u/s 12A(1) of the Act.

4.

Being aggrieved by the order of the CIT(Exemptions), the assessee has filed present appeal before us.

5.

The Ld. AR submitted that reasonable opportunity was not granted by the CIT(Exemptions) to the applicant society/trust by the CIT(Exemptions). Therefore, the Ld. AR submitted that the said order has passed without following principles of natural justice. Hence, the Ld. AR prayed that the matter may be restored to the file of the CIT(Exemptions) for giving opportunity to the applicant society/trust to plead the case for granting of registration u/s12A of the Act.

6.

The Ld. DR relied upon the order of the CIT(Exemptions).

7.

We have heard both the parties and perused the material available on record. From the perusal of the order of the CIT(Exemptions), it can be seen that the CIT(exemptions) has not granted proper opportunity to the applicant society/ trust for satisfying the relevant queries raised by him. Therefore, it will be appropriate to restore this matter to the file of the CIT (Exemptions) for giving proper opportunity of hearing and allowing the applicant society/trust to place the evidence before him for granting registration under Section 12A of the Act. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. The applicant society/trust is also directed to co- operate the proceedings before the CIT(Exemptions). Hence, appeal of the applicant society/trust is allowed for statistical purpose.

8.

In result, appeal of the applicant society/trust is allowed for statistical purpose.

9.

Order pronounced in the open court on 18th December, 2020 in presence of both the parties. Order pronounced in the Open Court on this 18th Day of December, 2020.

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