ROYAL ACADEMY OF SCIENCE,MANIPUR vs. CIT(EXEMPTION), KOLKATA, KOLKATA

The captioned appeal filed by the assessee , pertaining to assessment year 2019-20, is directed against the order passed by the Commissioner of Income Tax (Exemption)- Kolkata passed u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 (in short the “Act”) dated 22/11/2018.

At the time of hearing none appeared on behalf of assessee in spite of issuance of notice for hearing more than one occasion and Ld. Departmental Representative(DR), was present for the appellant Revenue. In the absence of any appearance by the assessee, the appeal is being disposed of ex parte qua the Royal Academy of Science Assessment Year:2019-20 assessee, after hearing Ld. DR for the Revenue on merits in terms of Rule 24 of the Income Tax Appellate, Tribunal, Rules, 1963.

We heard the ld. D.R. for the revenue and perused the material available on record. We note that the ld. CIT(E) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of principle of natural justice. We note that it is settled law that principles of natural justice and fair play require that the effected party is granted sufficient opportunity of being heard to contest his case. According to us, the ld. CIT(E) ought to have given more opportunity to the assessee to represent his case and therefore we note that the assessee did not get sufficient opportunity to represent his case before the ld. CIT(E). In addition to this, the ld. CIT(E) did not adjudicate the issue on merits. We are of the view that one more opportunity should be given to the assessee to plead his case before ld. CIT(E). 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. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(E) and remit the matter back to the file of the ld. CIT(E) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is allowed.

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