RAM KRISHNA KALYAN TRUST,LUCKNOW vs. COMMISSIONER OF INCOME TAX (EXEMPTION), LUCKNOW

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ITA 691/LKW/2018Status: DisposedITAT Lucknow19 July 20193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not given a reasonable and sufficient opportunity to present its case, and the CIT passed an ex-parte order. Therefore, the order of the CIT was set aside to provide one more opportunity.

What were the facts?

The assessee trust applied for registration under section 12A(a) of the Income-tax Act. The CIT (Exemption) issued a notice seeking specific queries, but no one appeared on behalf of the assessee on the given date.

What were the issues?

Whether the CIT (Exemption) properly afforded an opportunity of hearing to the assessee before rejecting the application for registration under Section 12A.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW

Before: SHRI. A. D. JAIN & SHRI T. S. KAPOOR

For Appellant: Shri Surendra Kohli, Advocate
For Respondent: Shri C. K. Singh, D.R

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA No.691/LKW/2018 Assessment Year: N.A. Ram Krishna Kalyan Trust v. CIT (Exemption) 4/111, Vrindavani Lucknow Sahara Estate, Jankipuram Lucknow TAN/PAN:AADTR4143C (Appellant) (Respondent) Appellant by: Shri Surendra Kohli, Advocate Respondent by: Shri C. K. Singh, D.R. Date of hearing: 18 07 2019 Date of pronouncement: 19 07 2019 O R D E R PER A. D. JAIN, V.P.: This is assessee’s appeal against the order of the ld. CIT (Exemption), Lucknow, dated 11/10/2018, rejecting the application for registration under section 12A(a) of the Act. 2. The facts of the case are that the assessee filed an application for registration under section 12A(a) of the Income-tax Act, 1961 on 30/4/2018 with the CIT (Exemptions), Lucknow. The ld. CIT (Exemptions) issued a letter dated 12/9/2018 to the assessee calling for specific queries regarding the application for registration u/s 12A of the Act, for compliance on 11/10/2018. On this date, i.e., 11/10/2018, none appeared on behalf of the assessee. The ld. CIT (Exemption) rejected the application moved by the assessee observing that he was not able to accept the applicant’s claim in the absence of sufficient material required for formation of satisfaction. 3. The ld. A.R. of the assessee submitted that no reasonable and sufficient opportunity has been given by the ld. CIT (Exemption), which

ITA No.691/LKW/2018 Page 2 of 3 is against the principles of natural justice. He prayed that in the interest of justice, the order of the ld. CIT (Exemption) may be set aside and he may be directed to dispose of the application of the assessee afresh after giving due opportunity of hearing to the assessee . 4. The ld. D.R., on the other hand, has placed reliance on the order of the ld. CIT (Exemption), Lucknow. 5. Heard. We find that the assessee had applied for registration under section 12A of the Act, which was rejected by the ld. CIT (Exemptions) in the absence of sufficient material required for formation of satisfaction; and that the CIT (Exemption) has issued only one notice to the assessee and has passed an ex-parte order, rejecting the application of the assessee for registration u/s 12A of the Act. In this view of the matter, we are of the view that one more opportunity should be given to the assessee to explain its case before the ld. CIT (Exemptions). From the facts of the case, we are of the view that the assessee has not been given proper and sufficient opportunity before disposing of the application for registration by the ld. CIT (Exemptions). We, therefore, in the interest of justice, set aside the order of the ld. CIT (Exemptions) and restore the matter to his file with the direction to consider the application of the assessee for registration u/s 12A afresh after giving due opportunity of hearing to the assessee. The assessee is also directed to be present on the date of hearing and provide the material / clarification as asked for by the ld. CIT (Exemptions). 6. In the result, for statistical purposes, the appeal of the assessee is allowed. Order pronounced in the open Court on 19/07/2019.

Sd/- Sd/- [T. S. KAPOOR] [A. D. JAIN] ACCOUNTANT MEMBER VICE PRESIDENT DATED:19/07/2019 JJ:1807

ITA No.691/LKW/2018 Page 3 of 3

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