SHRI CHINTAMANI PARSWANATH JAIN DERASAR TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX , CUMBALA HILL, MUMBAI

Before us, the learned counsel for the assessee submitted that the learned CIT(E) rejected the application after issuing only one show-cause notice and without affording an effective and meaningful opportunity of hearing. It was submitted that the assessee could not furnish the requisite reply within the stipulated time and, therefore, the application came to be rejected. It was accordingly prayed that the matter 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. We find that the impugned order has been passed after issuance of only one show-cause notice. In our considered opinion, before rejecting an application seeking registration under section 12AB, the assessee should be afforded an effective and adequate opportunity to place all the relevant documents and explanations on record. Since such opportunity was not effectively available in the present case, we deem it appropriate, in the interest of substantial justice, to restore the matter to the file of the learned CIT(E) for fresh adjudication.

Accordingly, we set aside the impugned order and restore the matter to the file of the learned CIT(E) with a direction to adjudicate the assessee’s application afresh in accordance with law after affording due and effective opportunity of hearing. The assessee shall also extend full cooperation in the proceedings and furnish all such documents and information as may be required by the learned CIT(E).

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