M/S BHARATIYA EDUCATION SOCIETY ,GADAG vs. COMMISSIONER OF INCOME TAX EXEMPTIONS , BANGALORE

This appeal is preferred by the assessee against the order of the Commissioner of Income-Tax (Exemptions) [“CIT”] passed u/s. 12AA(1)(b)(ii) of the Income-tax Act, 1961 [hereinafter called “the Act”] denying registration u/s. 12A of the act.

During the course of hearing, the ld. Counsel for the assessee has contended that the assessee has not received any notice from the CIT and the CIT has disposed of the application for registration u/s. 12A vide his order dated 25.09.2017 without affording opportunity of being heard to the assessee.

Our attention was also invited that the first notice was issued by the CIT on 10.09.2017 and the order was passed on 25.09.2017 without serving the notice of hearing upon the assessee.

The ld. DR placed reliance upon the order of the CIT.

Having carefully examined the order of the CIT, we find that the CIT has issued one notice dated 11.09.2017 asking the assessee to file certain details, but in his order it is not clear whether notice was served upon the assessee and the CIT has rejected the request for registration vide order dated 25.09.2017. Therefore it appears that sufficient opportunity was not afforded to assessee before adjudicating the claim of registration. In the light of these facts, we set aside the order of CIT and restore the matter to CIT’s file with a direction to readjudicate the claim of registration u/s. 12A of the Act, after affording proper opportunity of being heard to the assessee.

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