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Income Tax Appellate Tribunal, DELHI BENCH ‘C’ : NEW DELHI
Before: SHRI KULDIP SINGH & SHRI B.R.R. KUMAR
PER KULDIP SINGH, JUDICIAL MEMBER :
The appellant Edha Education Foundation, Chandigarh (hereinafter referred to as 'the assessee') by filing the aforesaid appeal, sought to set aside the impugned order dated 19/08/2015 passed by Ld. Commissioner of Income Tax(E), New Delhi qua the Assessment Year on the grounds inter alia that :
“1. That the Id .Commissioner of Income Tax has erred in law in deciding the appeal without affording a proper opportunity of hearing which is against the basic tenets of Principals of natural Justice and as such the order passed is illegal, arbitrary and unjustified.
Without prejudice to the above, the Ld. Commissioner of Income Tax has erred in law as well as on facts in rejecting registration under section 12AA of the Act in a summary manner which is arbitrary & unjustified.
That the Ld. Commissioner of Income Tax has observed that the assessee did not furnish books of account but has failed to appreciate that no proper opportunity was provided as the matter was listed for hearing only once and no further opportunity was granted in as much as the assessee was based out of Gurgaon and was not carrying the books at the time of first hearing and as such the order is arbitrary and unjustified.
4. That the registration has been refused only on the basis of suspicion, conjectures and surmises which is not permitted under the Law and as such the order refusing registration is illegal, arbitrary and unjustified.
That the order of the Ld. Commissioner of Income Tax is erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable.” 2. Briefly stated that facts necessary for adjudication of the controversy at hand are : assessee society has filed an application for form no. 10A for grant of registration u/s 12AA of the Act which has been summarily dismissed by CIT(E) on the ground that the applicant society has failed to furnish its book of accounts and vouchers so as to examine the genuineness of aims and objects of the society. 3. Feeling aggrieved the applicant society has come up before the Tribunal by way of filing the present appeal.
Applicant society has failed to appear before the bench despite service of notice, consequently the bench proceeded to decide the present appeal on merit with the assistance of the Ld. Sr. DR as well as on the basis of documents on record.
5. We have heard the ld. DR for the revenue and gone through the order passed by the lower revenue authority. 6. Undisputedly on the date of hearing fixed by Ld. CIT(A) dated 19.05.2015 Amit Purohit, Founder Trustees of the applicant trust attended the office and filed details. However, at the time of passing the impugned order CIT(E) recorded the fact that the applicant has failed to produce book of accounts and vouchers so as to ascertain the genuineness of its aims and objects. 7. But we are of the considered view that when applicant has filed details and thereafter no date was fixed by Ld. CIT(E) to produce the book of accounts, if so required and the assessed had a reasonable belief that the complete details have been brought on record, it is a case where no adequate opportunity of being heard has been granted to the applicant. So in these circumstances, we are of the considered view that the case is required to be remanded back to CIT(E) to decide a fresh after providing an opportunity of being heard to the application trust. Consequently present appeal filed by the applicant is allowed for statistical purposes.
Order pronounced in open court on this 26th February, 2019.