RAJKOT INSURANCE INSTITUTE,RAJKOT, GUJARAT vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

At the outset, the Ld. Counsel for the assessee submitted that the assessee could not submit the relevant documents and evidences before the Ld.CIT(E) due to circumstances beyond its control, therefore, one more opportunity should be given to the assessee to submit the relevant documents and evidences for registration of the trust u/s. 12AB of the Act. The Ld. Counsel for the assessee undertakes the responsibility to file the relevant documents and evidences before the Ld.CIT(E), on time, and would participate in the proceedings before Ld.CIT(E) and would not seek unnecessary adjournment.

On the other hand, the Ld. DR for the revenue submitted that the assessee was negligent in his approach during the proceedings before Ld.CIT(E), therefore, a minimum cost of Rs. 8,000/- should be imposed on the assessee, as the assessee wasted time and resources of the Lower Authorities.

We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the Ld.CIT(E) and other materials brought on record. We note that in the assessee’s case under consideration, the assessment order passed by the Ld.CIT(E) is an ex-parte order and non- speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee.

Considering the above facts, we note that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the ld. CIT(E). The assessee-trust could not file the relevant documents and evidences due to circumstances beyond its control. We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. However, on account of non-compliance attitude of the assessee, we impose a cost of Rs. 8,000/- on the assessee which should be deposited in the Prime Minister National Relief Fund. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(E) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. It is needless to say that the assessee will be at liberty to adduce any evidences as deemed relevant before the Ld. CIT(E) at the time of proceedings in consequence to this order and the Ld. CIT(E) shall, allow the assessee adequate opportunity of being, heard and to make relevant submissions, and then pass a speaking order which is fair and judicious.

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