M/S GADAG INSTITUTE OF MEDICAL SCIENCES,GADAG vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE

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ITA 2617/BANG/2017Status: DisposedITAT Bangalore27 February 2019AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee did not receive a proper opportunity to be heard due to the delayed receipt of the show cause notice. Therefore, the order of the CIT(Exemptions) was set aside.

What were the facts?

The assessee, a charitable institution, applied for registration under Section 12A. The CIT(Exemptions) dismissed the application as the assessee did not respond to a show cause notice. However, the assessee claimed to have received the notice much later than the hearing date.

What were the issues?

Whether the assessee was denied a proper opportunity of being heard before the rejection of its application for registration under Section 12A.

Which sections of the Income-tax Act were involved?

Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH : BANGALORE

Before: SHRI N.V. VASUDEVAN & SHRI B.R. BASKARAN

For Appellant: Ms. Mrinalini R., Advocate
For Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT), Bengaluru
Hearing: 29.01.2019Pronounced: 27.02.2019

Date of hearing : 29.01.2019 Date of Pronouncement : 27.02.2019 O R D E R

Per N.V. Vasudevan, Vice President

1.

This appeal by the assessee is against the order dated 22.09.2017 of the CIT(Exemptions) [“CIT(E)], Bangalore dismissing the application for grant of registration u/s. 12A of the Income-tax Act, 1961 ["the Act"].

2.

The assessee is a charitable institution. It filed an application for grant of registration u/s. 12A of the Act on 31.03.2017. The CIT(E) issued a letter dated 11.09.2017 calling for certain details and fixed the date of hearing for compliance between 18th and 22nd Sept. 2017. It appears that till 22nd Sept. 2017, i.e., the last date fixed in the notice for giving the reply, the CIT(E) did not receive any reply from the assessee and in the circumstances, he came to the conclusion that assessee was not entitled to grant of registration u/s. 12A of the Act as it had not satisfied the Commissioner about the conditions required for grant of registration. Accordingly, the application for grant of registration was rejected by the CIT(E).

3.

Aggrieved by the order of CIT(E), the assessee has filed the present appeal before the Tribunal.

4.

At the time of hearing, the ld. Counsel for the assessee brought to our notice that the show cause notice dated 11.09.2017 issued by the CIT(E) was received by the assessee only on 12.12.2017. Our attention was drawn to the date of receipt seal of the assessee in which the receipt of show cause notice issued by the CIT(E) dated 11.09.2017 is recorded as 12.12.2017. In the given facts and circumstances, we are satisfied that the assessee did not have proper opportunity of being heard before the CIT(E). We, therefore, set aside the order of CIT(E) and direct the CIT(E) to examine afresh the question of grant of registration u/s. 12A to the assessee, after affording proper opportunity of being heard.

5.

In the result, the appeal of assessee is allowed for statistical purposes.

Pronounced in the open court on this 27th day of February, 2019.

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