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Facts
The assessee society filed an application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT (Exemptions) rejected the application without providing an opportunity of being heard.
Held
The Tribunal held that the CIT's order was ex-parte and violated principles of natural justice. The case was remanded back to the CIT for fresh adjudication after affording the assessee an adequate opportunity of hearing.
Key Issues
Whether the CIT erred in rejecting the assessee's application for registration without providing a proper hearing, thus violating principles of natural justice.
Sections Cited
12A(1)(ac)(iii)
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आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLA TE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ �नधा�रण वष� / Assessment Year : 2025-26 Dhaliwal Healthcare Society, Vs. The CIT (Exemptions), Chiddi Mar Mohalla, बनाम Chandigarh Sector 78, VPO Sohana, SAS Nagar, Mohali 140308 �थायी लेखा सं./PAN No: AAETD3076B अपीलाथ�/ APPELLANT ��यथ�/ REPSONDENT ( Virtual Hearing ) �नधा�रती क� ओर से/Assessee by : Shri Pankaj Bhalla, CA (Virtual) राज�व क� ओर से/ Revenue by : Shri Rohit Sharma, CIT DR (Virtual) सुनवाई क� तार�ख/Date of Hearing : 06.02.2025 उदघोषणा क� तार�ख/Date of Pronouncement : 24. 02.2025 आदेश/Order Per Krinwant Sahay, A.M.:
The appeal in this case has been filed by the Assessee against the order dated 05.07.2024 of the ld. Commissioner of Income Tax (Exemptions), Chandigarh
2. Ground of appeal are as under: - 1. That the Chandigarh Commissioner of Income Tax (exemptions) erred in law and facts in rejecting the application made u/s 12A(1)(ac)(iii) of the Income Tax
909 -Chd-2024 – Dhaliwal Healthcare Soceity, Mohali 2 Act, 1961 of Assessee Society to grant registration for the said purpose without any base and reason thereof.
1.1 That the Order was passed by C.I.T. (exemptions) without affording an opportunity of being heard, in contravention to the principle of natural justice i.e. "audi altem patrem"
That the appellant craves, leave to vary, alter or add any grounds of appeal.
3. At the very outset, ld. Counsel for the Assessee submitted during the proceedings before us that the ld. CIT(E) has passed the order without hearing the Assessee. The ld. CIT DR vehemently argued and stated that various opportunities have been provieded to the Assessee but the Assessee did not comply with the notices issued by the ld. CIT(E). In response, the Counsel of the Assessee has stated that all the notices were issued on ITBA portal and it is seen from the Income Tax Portal that the notice were delivered on Assessee’s portal. The ld. Counsel for the Assessee further submitted that the Assessee could not see the notices on the portal and, therefore, no compliance was made. The ld. counsel further prayed the Bench that the matter may be remanded back to CIT(E) for passing an order on merit after giving opportunity to the Assessee.
We have considered the request made by the Counsel of the Assessee. We have also gone through the order passed by the CIT(E)
909 -Chd-2024 – Dhaliwal Healthcare Soceity, Mohali 3 and the arguments made by the ld. DR. We find that the order passed by ld. CIT(E) is ex-parte order and the Assessee could not place required documents on record before the ld. CIT(E). Therefore, in the fitness of things and keeping in view the element of natural justice, the case is remanded back to CIT(E) for adjudication afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(E). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. The appeal of the Assessee is allowed for statistical purposes.
In the result, the appeal is allowed for statistical purposes. Order pronounced on 24 02.2025