SAHARA PHYSICAL REHABITATION AND WELFARE INSTITUTE vs. CIT (EXEMPTIONS),

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ITA 45/PAT/2015Status: DisposedITAT Patna08 March 20184 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) passed an ex-parte order without providing a reasonable opportunity of being heard to the assessee. The CIT(Exemptions) also failed to provide material to substantiate the claim of non-genuine activities.

What were the facts?

The assessee applied for registration under Section 12AA of the Income Tax Act. The CIT(Exemptions) rejected the application ex-parte, stating the assessee's activities were not genuine, without providing a hearing.

What were the issues?

Whether the CIT(Exemptions) erred in rejecting the registration application without providing a proper hearing and sufficient material evidence.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Respondent: Smt. Archana Sinha, Sr. S.C
Hearing: 07.03.2018Pronounced: 8.03.2018

IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA Before Sh. N. K. Saini, AM and Sh. Amit Shukla, JM ITA No. 45/Pat./2015 : Asstt. Year : Sahara Physical Rehabilitation Vs Commissioner of Income Tax (Exemptions), 2nd Floor Central and Welfare Institute, Pirmohani, Gali No. 2, Revenue Building, Birchand Patel Kadamkuan, Patna, Bihar Marg, Patna-800001 (APPELLANT) (RESPONDENT) PAN No. AAITS4130K Assessee by : Sh. Shikesh Jha, Adv. Revenue by : Smt. Archana Sinha, Sr. S.C. Date of Hearing : 07.03.2018 Date of Pronouncement : 8.03.2018 ORDER Per N. K. Saini, AM: This is an appeal by the assessee against the order dated 20.04.2015 of ld. CIT(Exemptions), Patna.

2.

The only grievance of the assessee in this appeal relates to the refusing to register the assessee society u/s 12AA of the Income Tax Act, 1961 (hereinafter referred to as the Act).

3.

Facts of the case in brief are that the assessee filed an application in Form No. 10A of the Income Tax Rules, 1962 for registration u/s 12AA of the Act on 13.10.2010. The ld. CIT(E) asked the assessee to furnish certain papers/documents vide letter dated 27.03.2015 but nobody appeared. The ld. CIT(E) mentioned that nobody appeared nor any adjournment was sought. He, therefore, rejected the application by observing that from the papers/documents attached with the application in Form No. 10A, it was established that

2 ITA No. 45/Pat./2015 Sahara Physical Rehabilitation and Welfare Institute the aims & objects of the assessee society and its activities were not genuine.

4.

Now the assessee is in appeal. The ld. Counsel for the assessee stated that no opportunity of being heard was provided by the ld. CIT(E) and no notice for hearing was served upon the assessee.

5.

In his rival submissions, the ld. Sr. Standing Counsel for the department supported the order of the ld. CIT(E).

6.

We have considered the submissions of both the parties and carefully gone through material available on record. In the present case, it is an admitted fact that the ld. CIT(E) passed an ex-parte order. It is also not brought on record as to whether the notice for hearing on 15.04.2015 was served upon the assessee or not. The ld. CIT(E) also did not bring any material on record to substantiate that the activities of the assessee were not according to its aims and objects and that how and in what manner these were not genuine. It is well settled that nobody should be condemned unheard as per the maxim “audi alteram partem”. We, therefore, considering the totality of the facts of the present case, deem it appropriate to set aside this case back to the file of the ld. CIT(E) to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee.

7.

In the result, the appeal of the assessee is allowed for statistical purposes. (Order Pronounced in the Court on 08/03/2018)

Sd/- Sd/- (Amit Shukla) (N. K. Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 08 /03/2018 *Subodh*

3 ITA No. 45/Pat./2015 Sahara Physical Rehabilitation and Welfare Institute

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