SURAT DIAMOND CUTTING AND POLISHING CLUSTER SPV TRUST,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 and due to circumstances beyond control, assessee could not file the necessary details. He argued that principles of natural justice has not been adhered to. The ld. AR submitted that the assessee is ready to submit relevant documents and details before the CIT(E) and hence he requested that the matter may be remitted back to the file of the CIT(E) for fresh adjudication.

On the other hand, the learned Commissioner of Income-tax – Departmental Representative (ld. CIT-DR) for the revenue submitted that reasonable cost may be imposed, if the matter is remitted to the file of CIT(E). to 1128/SRT/2024/AYs.2021-22 & 2024-25 Surat Diamond Cutting & Polishing, Bavangam N. B. C. C. Trust & Shree Aadinath E & C Trust 5. We have heard both the parties and perused the 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) subject to payment of cost of Rs.10,000/- (Rupees ten thousand only) by the assessee to the credit of the “Gujarat High Court Legal Aid Authority” within 2 weeks from receipt of this order. Subject to payment of above cost, we set aside the order of CIT(E) and remit the matter to the file of CIT(E) with a direction to pass fresh order in accordance with law after granting adequate opportunity of hearing to the assessee. The assessee is directed to be more vigilant and diligent 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

In the result, appeal of the assessee is allowed for statistical purpose. & 1126/SRT/2024 (AY.2024-25): 9. In these appeals, the CIT(E) has issued two notices of hearing which were not complied with. The assessee-trust had also not requested for adjournment. Hence, the application for registration filed in Form No.10AB u/s 12A(1)(ac)(iii) and the application filed in Form No.10AB for approval u/s 80G(5)(iii) of the Act were rejected and the provisional approval was also cancelled. Facts of the case and the reasons given by the CIT(E) for rejecting the application are similar as in ITA No.1124/SRT/2024, decided above. We have already set aside the above case to the file of CIT(E) in respect of ITA Nos.1123 to 1128/SRT/2024/AYs.2021-22 & 2024-25 Surat Diamond Cutting & Polishing, Bavangam N. B. C. C. Trust & Shree Aadinath E & C Trust rejection of application for registration of the assessee-trust in decided above. Following the same reason, these two appeals are also remitted to the file of CIT(E) subject to the cost of Rs.10,000/- (Rupees ten thousand only) to the credit of “Gujarat High Court Legal Aid Authority” within 2 weeks from receipt of this order. Subject to the payment of the above cost, we set aside the orders of CIT(E) and remit the matter to the file of CIT(E) for fresh adjudication after granting reasonable opportunity of being heard to the assessee. For the statistical purposes, these appeals are allowed for statistical purposes.

In the result, these appeals of the assessee are allowed for statistical purpose. & 1128/SRT/2024 (AY.2024-25): 11. In these appeals, the CIT(E) has issued two notices of hearing which were not complied with. The assessee-trust had also not requested for adjournment. Hence, the application for registration filed in Form No.10AB u/s 12A(1)(ac)(iii) and the application filed in Form No.10AB for approval u/s 80G(5)(iii) of the Act were rejected and the provisional approval was also cancelled. Facts of the cases and the reasons given by the CIT(E) for rejecting the applications are similar as in ITA No.1124/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.1124/SRT/2024 decided above. Following the same reason, these two