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Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
Before: Shri A. T. Varkey, Hon’ble & Dr. M. L. Meena, Hon’ble]
ORDER Per Bench: This is an appeal preferred by the trustee of assessee-trust against the action of the Ld. CIT (Exemptions)-Kolkata dated 31.07.2018 refusing registration u/s 12AA of the Income Tax Act, 1961 (hereinafter referred to as the Act).
None appeared for the assessee-trust.
However, the main grievance of the assessee-trust as discerned from the perusal of the grounds of appeal is that it did not get reasonable opportunity to produce relevant documents which were requisitioned by the Ld. CIT (Exemptions) in the course of hearing. According to assessee, on 31.08.2018 which was the last date of disposal of application as prescribed under the Statute at 18.00 hrs, the Ld. CIT (E) asked for production of certain documents/clarifications, which could not be immediately complied by the assessee; and the Ld. CIT(E) has passed the impugned order without giving time to comply with his requisition and therefore proper/reasonable opportunity was not given to the assessee trust during the proceedings before Ld CIT(E). However, on a perusal of the impugned order of the Ld. CIT(E), we note that the order of Ld. CIT(E) refusing grant of registration u/s 12AA of the Act was passed on 31.07.2018 whereas the assessee claims that the query/clarification/documents were asked at about 18.00 hours on 31.08.2018 on the last date of disposal of application under the Statute which is contrary to the date of order of Ld.
2 Dayal Sangha CIT(E) which is found to be on 31.07.2018 (i.e. one month before). However, since the assessee claims that the documents/query raised by the Ld. CIT(Exemptions) was asked at about 6 P.M. on the last date of disposal of application as per the Statute, the assessee was not able to place the documents to the satisfaction of the Ld. CIT(E) before the impugned order was passed. In this context, it has to be kept in mind that justice should not only be done but also seen to be done. In the light of the grievance raised by the assessee, against the action of Ld CIT(E) in asking for documents at the fag-end, and not granting time to comply with his direction makes the order bad and therefore, in the interest of justice and fair play we are inclined to set aside the order of Ld. CIT(Exemptions) and remand the application for registration under 12AA of the Act back to him and direct that the Ld. CIT(Exemptions) may grant sufficient opportunity to the assessee and after hearing the assessee pass the order in accordance to law. The assessee is at liberty to file written submission along with documents at the earliest before the Ld. CIT(Exemptions) since the assessee by going through the impugned order of Ld. CIT(E) must have understood the reason for rejection of its application for registration u/s. 12AA of the Act. So, it may file necessary documents/clarify/explain and file written submission making its stand clear factually and in accordance to law. By doing so, last minute confusion like this event, can be avoided in future. With the aforesaid observation we dispose of this appeal.
In the result, the appeal of the Assessee is allowed for statistical purposes. Order is pronounced in the open court on 30th July, 2021.