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Facts
The assessee's appeal originated from an order by the Commissioner of Income Tax (Exemptions) for the assessment year 2025-26. The assessee failed to appear before the Assessing Officer and the CIT(A) to present their case, resulting in ex-parte orders.
Held
The Tribunal noted that while the CIT(A) had provided opportunities, the final order was ex-parte. To ensure natural justice, the Tribunal decided to set aside the CIT(A)'s order and remand the matter back for a fresh adjudication with a reasonable opportunity to be heard.
Key Issues
Whether the CIT(E) was justified in rejecting the application for provisional registration and cancelling it due to lack of documents proving the trust's activities?
Sections Cited
12AB, 12A(1)(ac)(vi), Income Tax Act, 1961
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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRIK.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 06/01/2025 Date of Order – 27/01/2025
O R D E R PER V. DURGA RAO, J.M.
This appeal by the assessee is emanating from the impugned order dated 210/07/2024, passed by the learned Commissioner of Income Tax (Exemptions), Pune, [“learned CIT(E)”], for the assessment year 2025-26.
In its appeal, the assessee has raised following grounds:–
“1 Whether on the facts and circumstances of the case the learned CIT Exemptions Pune was justified in rejecting the application for provisional registration granted on 28/05/2021 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 and cancelling it for want of documents pertaining to genuineness of activities of the trust. 2. The Appellant craves leave to add or alter any other ground that may be taken at the time of hearing.”
2 Shri Gorakshan Sanstha ITA no.493/Nag./2024 3. During the course of hearing, while going through the material available on record, we find that the assessee neither before the Assessing Officer nor before the learned CIT(A) appeared to assist the authorities below to dispose off its appeal and resultantly both the authorities below have dismissed the assessee’s appeal by passing ex–parte orders.
4. Before us, the learned Counsel for the assessee submitted that the learned CIT(A) passed an ex-parte order and since the assessee could not avail the opportunities granted by the learned CIT(A) to argue the matter, therefore, the learned Counsel for the assessee prayed that one opportunity may be granted by restoring the matter to the file of the learned CIT(A) to enable the assessee to substantiate its case before the learned CIT(A).
2. On the other hand, the learned D.R. submitted that despite the learned CIT(A) provided sufficient opportunities to the assesse, however, the assessee did not appear before the learned CIT(A) and not furnished relevant details. He strongly supported the orders passed by the learned CIT(A).
We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. We find that though the learned CIT(A) granted opportunities to the assessee to substantiate its case, ultimately, the order passed by him is an ex-parte order. According to us, the learned CIT(A) was justified in dismissing assessee’s appeal. Keeping in view the overall facts and circumstances of the case, therefore, to meet the ends of justice, we are of the opinion that by following the principles of natural justice, one opportunity should be given to the assessee to 3 Shri Gorakshan Sanstha ITA no.493/Nag./2024 substantiate the case before the learned CIT(A). In view of the above, the order passed by the learned CIT(A) is set aside and remit the matter to the file of the learned CIT(A) and direct him to adjudicate the matter afresh on merit and in accordance with law after providing reasonable opportunity of being heard to the assessee. It is also directed that the assessee should not seek adjournment without there being a justified reason. Accordingly, all the grounds raised by the assessee in this appeal are allowed for statistical purposes.
In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 27/01/2025