BOT SINGH,FIROZABAD vs. ITO, FIROZABAD

Per Dr. M.L. Meena, A.M.:

This appeal has been filed by the assessee against the order dated

13.08.2018passed by the Commissioner of Income Tax, (Exemption),

Lucknow, wherein the assessee has been challenging the rejection of its

application for registration under section 12AA of Income Tax Act 1961:

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“1- BECAUSE in any view the application for registration u/s 12A(a) of the Income Tax Act, 1961 rejected by Ld. C.I.T. EXEMPTION is highly unjust, without proper opportunity, wrong, illegal and against the facts and law of the case.

2- BECAUSE in any view the order passed by Ld. CIT EXEMPTION without considering the reply filed by post & received in his office dt.13.08.2018 and

documents filed with application in haste is highly unjust, without proper opportunity, wrong, illegal and against the facts and law of the case.

3- BECAUSE in any view, without prejudice to the above grounds, application rejected is wrong, illegal, without proper opportunity, bad in law and against the facts and law of the case.

4- BECAUSE in any view, registration u/s 12A of the Income Tax, 1961 may be granted.

4- BECAUSE the appellant craves leave to add or alter any or more ground orgrounds of Appeal, at the time of hearing of appeal.” Apropos ground no. 3, the assessee’s objection is that its application 2. was rejected without proper opportunity, which is bad in law.

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3.1 Thus, the ld. CIT(E) passed the impugned order ex parte qua the assessee for the observations that on the date fixed for hearing, on 13.08.2018, no one appeared before him on behalf of the assessee, nor any application for adjournment was received. However, the Ld. CIT(E) has nowhere in the rejection order stated that the trust objects are non- charitable nor has been able to bring out the fact that the activities of the trust are non-charitable.

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Considering the assessee’s objection that the ld. CIT (E) had erred in 4. law and on facts in rejecting its application for registration under section 12AA of the Income Tax Act without giving sufficient opportunity, it is noted that the ld. CIT (E) proceeded with the matter in the absence of the assessee, and the order under appeal was passed exparte qua the assesseefor the observations made in the impugned order.

The assessee’s grievance is that it was not given sufficient 5. opportunity being heard by the CIT(Exemption) in accordance with the principles of natural justice. We find that the CIT(E) has not issued any show cause notice specifying the reasons for rejection of registration sought by the assessee u/s 12AA of the act. We further observe that the society cannot claim exemption, unless it is registered under Section 12AA and, thus, at such initial stage the test of genuineness of activity cannot be a basis on which the registration may be refused. The learned D.R. fairly agreed to restore the impugned order for reconsideration of the CIT(E) after granting sufficient opportunity of being heard to the assessee.

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required by the learned CIT, could have been furnished before him

provided the assessee has been granted sufficient opportunity of being

heard by way of communicating to the appellant the requisite details sought

by learned CIT. It is also noted that due to inadequate opportunity that the

necessary material evidence by way of documentary evidence might not be made before him.

not be furnished due to lack of sufficient opportunity granted to the

assessee sounds logical, reasonable and justified. The assessee was in

making submission before the lad CIT(E) in absence of sufficient

opportunity of being heard to produce the necessary documents as per

principles of natural justice as above, we find it deem fit to restore the

matter back to the file of the CIT(E) to examine the issue of grant of

registration u/s 12AA of the act, afresh after taking into consideration the

material evidence after affording sufficient opportunity of being heard to the

assessee trust, as per principles of natural justice. Accordingly, the case is

restored to the CIT, for fresh consideration and examination of the

application of assessee under section 12A(a), to Verify that the objectives

of the assessee trust are charitable in nature and activities carried out are

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genuine during the year for which the registration is sought for by the

assessee society in the light of material evidences relevant for the purpose

of grant of registration u/s 12AA of the Act filed or to be filed in compliance

to notices issued in fresh proceedings. The assessee shall cooperate in the

proceedings, before the CIT (E) and all pleas available under the law shall

remain so available to the assessee in the fresh proceedings before the Ld.

CIT (E).

terms indicated as above.

Order pronounced in the open court on 30/10/2019.

Sd/- Sd/- (Laliet Kumar) (Dr. Mitha Lal Meena) JUDICIAL MEMBER ACCOUNTANT MEMBER *AKV*/DOC Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT AGRA