SARDAR V PATEL SMRUTI FUND,SURAT vs. CIT (EXEMPTION), AHMEDABAD

Aggrieved by the order of CIT(E), the assessee filed present appeal before the Tribunal. The learned Authorized Representative (ld. AR) submitted that order passed by the CIT(E) is an ex parte order, as the assessee could not file relevant documents and evidences before the CIT(E). He submitted that only two opportunities were granted within a relatively short span of one month only and due to circumstances beyond control, assessee could not file the necessary details. He argued that principles of natural justice have not been adhered to. The ld. AR submitted that the assessee is ready to submit relevant documents to 1140/SRT/2024 Navsari Bazar & Sangrampura Surati Modh Ganchi Vanik Punch and details before the CIT(E) and one more opportunity may be given to assessee to plead its case on merit. He, accordingly, requested that the matter may be remitted to CIT(E) for fresh adjudication.

On the other hand, the learned Commissioner of Income-tax – Departmental Representative (ld. CIT-DR) for the revenue relied on the order of CIT(E). He, however, would have no objection if the matter is set aside to the file of CIT(E).

We have heard both the parties and perused the materials available on record. We find that the CIT(E) has decided the matter ex parte due to non- compliance by the applicant to the two notices issued by him. There was also no adjournment request by the assessee. The ld. AR has contended that the assessee-trust is ready to submit all the details and evidences needed by the CIT(E). He requested that in the interest of justice, one more opportunity may be given to the assessee to plead its case, which is strong on merits. We are of the view that one more opportunity should be given to the assessee to file requisite documents and evidences before the CIT(E) and to plead its case before him. It is a settled law that the principles of natural justice require the affected party to be granted sufficient opportunity of being heard to contest his case. Therefore, in the interest of justice, we restore the matter to the file of the CIT(E). Accordingly, we set aside the order of CIT(E) and remit the matter to CIT(E) with a direction to pass fresh order in accordance with law after granting reasonable opportunity of hearing to the assessee. The assessee is directed to be more vigilant and diligent to 1140/SRT/2024 Navsari Bazar & Sangrampura Surati Modh Ganchi Vanik Punch and to furnish all the details and explanations as needed by the CIT(E) by not seeking adjournment without any valid reasons. With these directions, the grounds of appeal

6. In the result, appeal of the assessee is allowed for statistical purposes. to 1140/SRT/2024: 7. In all these appeals, the facts are similar to the facts of decided above. The CIT(E) had issued two notices in all the cases, which were not complied with. Therefore, the CIT(E) rejected assessee’s application for registration of trust u/s 12A(1)(ac)(iii) of the Act and also cancelled the provisional approval. The facts of the cases and the reasons given by the CIT(E) for rejecting the applications are similar as in ITA No.1132/SRT/2024, decided above. We have already set aside the above case to the file of CIT(E) in respect of rejection of application for registration of the assessee-trust in ITA No.1132/SRT/2024 decided above. Following the same reason, these appeals are also remitted to the file of CIT(E). Accordingly, we set aside the orders of CIT(E) and remit the matter to CIT(E) for fresh adjudication after granting reasonable opportunity of being heard to the assessee.

In the result, these appeals are allowed for statistical purpose.

Since the assessee did not file the requisite details, despite two notices issued by the CIT(E), the application filed in Form No.10AB for approval u/s 80G(5)(iii) of the Act was rejected and the provisional approval was also