DR.B.R.AMBEDKAR MEMORIAL EDUCATIONAL TRUST,GUNTUR vs. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), HYDERABAD

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ITA 1703/HYD/2018Status: DisposedITAT Hyderabad31 July 20193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the order of the CIT(Exemptions) was not sustainable as it was passed before the date of hearing, violating principles of natural justice. The order was set aside and the matter was remanded for fresh consideration.

What were the facts?

The assessee applied for registration under Section 12AA of the Income Tax Act. The CIT(Exemptions) disposed of the application on May 30, 2018, prior to the scheduled hearing date of May 31, 2018, citing non-appearance and lack of information.

What were the issues?

Whether the CIT's order rejecting the registration application was valid when passed before the scheduled hearing date, violating natural justice principles.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” : HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI S. RIFAUR RAHMAN

PER Smt. P. MADHAVI DEVI, J.M. :

This is assessee’s appeal against the order of the Commissioner of Income Tax (Exemptions)-Hyderabad, dated 30-05-2018, rejecting the assessee’s application for grant of registration u/s.12AA of the Income Tax Act [Act].

2.

At the outset, the Ld.Counsel for the assessee has brought to our notice that assessee had applied for registration u/s.12A of the Act by filing necessary documents. The CIT(Exemptions) had issued notice dt.26-04-2018, fixing the case for hearing on 31-05-2018. However, he disposed-of the application vide order dt.30-05-2018, by observing that

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assessee has neither appeared nor furnished any information. Therefore, it is in violation of ‘principles of natural justice’.

3.

Ld.DR was also heard and taking into consideration that the application of assessee was disposed-of vide order dt.30-05-2018, prior to the date of hearing i.e., on 31-05-2018, the order of CIT(Exemptions) is not sustainable. Therefore, we set aside the order of CIT(Exemptions) and remand the issue to the file of CIT(Exemptions) with a direction to re-consider the assessee’s application afresh in accordance with law, after giving due opportunity of hearing to the assessee.

4.

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

Order pronounced in the open court on 31st July, 2019

Sd/- Sd/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated 31-07-2019 TNMM

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Copy to :

1.

M/s. Dr.B.R.Ambedkar Memorial Educational Trust, D.No.19-15/24/1, Bose Road, Dr.B.R.Ambedkar College Campus, Tenali, Guntur Dist.,

2.

The Commissioner of Income Tax(Exemptions), Hyderabad.

3.

The Addl.CIT(Exemptions), Vijayawada.

4.

D.R. ITAT, Hyderabad.

5.

Guard File.

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