DODDABALLAPUR INDUSTRIES ASSOCIATION,DODDABALLAPUR vs. COMMISSIONER OF INCOME TAX (E), BANGALORE

During the course of hearing, the learned counsel for the assessee has invited our attention to the order of the CIT(A) denying the Registration under section 12AA of the Act with the submission that CIT did not consider the detailed evidence and requisite information furnished before him with regard to the activities and financial statements. In support of his contention, the learned counsel for the assessee has invited our attention to the evidences filed before the CIT.

The learned counsel for the assessee further contended that since CIT has not taken into account the relevant evidences filed before him, the order of the CIT may be set aside and matter be restored to his file with a direction to readjudicate the issue on ground of registration under section 12AA, after affording opportunity of being heard to the assessee and also after taking into account the evidences filed before him by passing a reasoned order.

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

Having carefully examined the order of the CIT, we find that CIT has rejected the Registration on the ground that requisite information is not furnished before him during the course of hearing whereas from the documents filed before us along with the covering letter evidencing the filing of documents, we find that in response to queries raised by the CIT, the assessee has filed the detailed evidence/information but unfortunately the CIT did not consider the same and rejected the application for Registration under section 12AA of the Act having observed that assessee has not filed the requisite information whereas the facts are otherwise. Under these circumstances, we are of the view that let the matter be sent back to CIT for adjudication of the impugned issues after affording opportunity of being heard to the assessee. Accordingly, we set aside the order of the CIT and restore the matter to his file with a direction to readjudicate the issue of Registration under section 12AA of the Act after affording opportunity of being heard to the assessee.

Since the order of the CIT passed on application of Registration under section 12AA is set aside, we also set aside the order of the CIT passed on application for recognition under section 80G(5)vi) as it was rejected on the ground that CIT has denied the Registration under section 12AA of the Act. Accordingly, the order of the CIT passed on application for recognition under section 80G(5)(vi) is set aside and matter is restored to his file with a direction to readjudicate it after affording opportunity of being heard to the assessee.

In the result, appeals of the assessee stands allowed for statistical purpose.