SRI PALAVADI SASTHA SEVA SAMAJAM TRUST,CHENNAI vs. THE CIT(EXEMPTIONS), CHENNAI

Brief facts of the case are that the assessee is a trust filed application in Form No.10A for registration u/s.12AA of the Income Tax Act, 1961. During the course of proceedings before the CIT (Exemptions), while processing application, the assessee was called upon to furnish necessary clarification/explanation and accordingly, e-mail communication dated 23.10.2018 was sent to the assessee. The assessee neither appeared nor filed any details. Therefore, the CIT (Exemption) has rejected application filed by the assessee in Form No.10A for registration of trust u/s.12AA of the Income Tax Act, 1961. Aggrieved by the learned CIT (Exemption) order, the assessee is in appeal before us.

None appeared for the assessee. We have heard learned DR and perused order passed by the CIT (Exemption) u/s.12AA(1)(b)(ii) of the Income Tax Act, 1961, dated 31.01.2019. We find that CIT (Exemption) has disposed off application filed by the assessee in Form No.10A for registration of trust u/s.12AA of the Act, without providing reasonable opportunity of hearing to the assessee, which is evident from fact that the CIT (Exemption) has given one opportunity of hearing to the assessee. No doubt, when the assessee/applicant does not show any interest in pursuing its case, then the authorities have left with no option, but to complete proceedings on the basis of materials available on record in accordance with law, but such proceedings should be completed after giving reasonable opportunity of hearing to the assessee in light of principles of natural justice. In this case, the CIT (Exemption) has neither given sufficient opportunity of hearing to the assessee nor decided eligibility of the assessee trust for registration u/s.12AA of the Income Tax Act, 1961.