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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: SHRI WASEEM AHMED & Ms. SUCHITRA KAMBLE
PER SUCHITRA KAMBLE, JUDICIAL MEMBER :
This appeal is filed by the assessee against the order dated 23.01.2019 passed by the CIT(A)-9, Ahmedabad for the Assessment Year 2014-15.
The grounds of appeal raised by the assessee are as under :
“1) The Ld. CIT(A) erred in law and on facts in confirming rejection of rectification application filed by the assessee u/s 154 of Income Tax Act, 1961 without considering the submission filed by the assessee on the online portal.
2) The order passed by the CIT(A) is bad in law as it was passed without adhering the principle of natural justice.
The appellant craves leave to add, amend or alter the grounds of appeal before or at the time of hearing.”
Page 2 of 3 3. The appellant is a Trust registered under Section 12A of the Income Tax Act, 1961 since 18.02.1986. The primary object of the appellant Trust is to impart education through various Institutes. The Trust has obtained audit report in form 10B as mandated under Section 12A(b) of the Act for claiming exemption for Assessment year 2014-15. The appellant filed its return of income for Assessment Year 2014-15 on 15.09.2014 claiming exemption under Section 12 but inadvertently it filed the incorrect details under column ‘Ç’ and typed “NO” against the column “whether the Trust is registered under Section 12A/12AA ?”. Thereafter, return was processed under Section 143(1) of the Act and due to above inadvertent mistake exemption available to the Trust was withdrawn and demand of Rs.13,46,070/- was raised on the Trust by intimation dated 28.02.2016. After receiving intimation raising demand, Trust has filed rectification application on e-filing portal to Central Processing Centre (CPC) to rectify the order and uploaded the correct particulars in ITR vide its application dated 12.12.2016 and 29.05.2017. Both the applications were rejected by the CPC on 16.03.2017 and 28.07.2017. Thereafter, on 31.07.2017 after the rejection of on-line rectification application, right of rectification was transferred to Jurisdictional Assessing Officer.
Being aggrieved by the said rectification order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee thereby applying the decision of the Hon’ble High Court of Delhi in the case of Multiplan India Limited, 38 ITD 320.
Ld. AR submitted that both the Revenue Authorities have not given any opportunity to the assessee for proper hearing and principles of natural justice were violated. Therefore, the Ld. AR submitted that the matter may be remanded back to the file of the Assessing Officer to give opportunity of hearing to the assessee.
The Ld. DR relied upon the rectification order and order of the CIT(A) but at the same time submitted that the assessee was not heard at any stage.
We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that at any stage of the assessment proceedings as well as appellate proceedings, i.e. before the CIT(A), no opportunity was granted to Page 3 of 3 the assessee for personal hearing to comment on the merit of the case. Therefore, it will be appropriate to remand back the entire issue to the file of the Assessing Officer for proper adjudication of the issues on merit and thereafter pass appropriate order as per due process of law. Needless to say the assessee be given opportunity of hearing by following principles of natural justice. Appeal of the assessee is partly allowed for statistical purposes.
In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on this 4th day of January, 2022.