VEDANTA TRUST,MUMBAI vs. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS),, MUMBAI

Before us, the learned counsel for the assessee submitted that the learned CIT(E) afforded only one opportunity during the course of the proceedings. It was further submitted that the assessee had already furnished partial compliance along with certain documents in response to the notice issued by the learned CIT(E). However, without considering the material already placed on record and without granting any further effective opportunity to remove the deficiencies, the learned CIT(E) proceeded to reject both the applications. It was, therefore, prayed that the matters be restored to the file of the learned CIT(E) for fresh adjudication. The learned Departmental Representative fairly left the issue to the discretion of the Bench.

We have considered the rival submissions and perused the material available on record. It is evident that only one effective opportunity was granted to the assessee and that partial compliance had already been made. The impugned orders do not indicate any consideration of the material already furnished by the assessee before proceeding to reject the applications. In our considered opinion, where some compliance has already been made, the authority ought to examine the material available on record and, if any further

Accordingly, in the interest of substantial justice, we set aside the impugned orders and restore both the matters to the file of the learned CIT(E) with a direction to adjudicate the applications afresh in accordance with law after considering the material already available on record as well as such further documents as may be furnished by the assessee. The learned CIT(E) shall afford due and effective opportunity of hearing before passing fresh speaking orders. The assessee is also directed to extend full cooperation in the proceedings and furnish all requisite documents and explanations as may be called for.

In the result, both the appeals of the assessee are allowed for statistical purposes