M/S. CHILDREN WELFARE TRUST,FARIDABAD vs. CIT (EXEMPTIONS), CHANDIGARH

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ITA 3039/DEL/2016Status: DisposedITAT Delhi20 September 20174 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection of the application without affording an opportunity of hearing violated the principles of natural justice. Therefore, the matter was restored to the CIT(E) for fresh consideration.

What were the facts?

The assessee, Children Welfare Trust, applied for registration under Section 12AA of the Income Tax Act. The CIT(E) rejected the application without providing an opportunity of hearing to the assessee.

What were the issues?

Whether the CIT(E) erred in rejecting the application for registration under Section 12AA without providing an opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘F’: NEW DELHI

Before: SHRI G.D. AGRAWAL, HON’BLE & SHRI SUDHANSHU SRIVASTAVA

For Appellant: Dr. Rakesh Gupta, Adv
Hearing: 04.09.2017Pronounced: 20.09.2017

This appeal has been preferred by the assessee against the order dated 29.04.2016 passed by the ld. CIT(E), Chandigarh rejecting the assessee’s application for seeking registration u/s 12AA of the Income Tax Act, 1961.

2.

Following grounds have been raised in the appeal:-

ITA 3039/Del/2016 “1. That having regard to the facts and circumstances of the case, Ld. CIT(E) has erred in law and on facts in rejecting application for registration u/s 12AA and that too without giving any opportunity of hearing and by not observing the principle of natural justice.

2. That in any view of the matter and in any case, action of Ld. CIT(E) in denying the registration u/s 12AA is bad in law and against the facts and circumstances of the case and the appellant ought to have been granted registration u/s 12AA.

3. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other.”

3.

An application was received on behalf of the Senior DR that the hearing may be adjourned as the Sr. DR was on leave.

However, we reject the adjournment application and proceed to hear the case ex parte qua the department.

4.

The ld. AR submitted that the notice fixing the date of hearing before the ld. CIT(E) was not received by the assessee and, therefore, the opportunity of hearing could not be availed by the assessee. Our attention was drawn to page 3 of the impugned order wherein the ld. CIT(E) has himself mentioned that the opportunity accorded was not availed by the applicant.

It was submitted that the issue needs to be examined by the ld. CIT(E) in detail and, therefore, it was prayed that the same be restored to the file of the ld. CIT(E). 2 ITA 3039/Del/2016

5.

We have heard the submissions of the Ld. Authorised Representative and carefully perused the relevant material placed on record. It is undisputed that the assessee could not avail the opportunity granted to it in connection with the registration u/s 12AA of the Income Tax Act, 1961 and the same is evident from the impugned order. Therefore, in the interest of justice, we deem it fit to restore the issue to the file of the ld. CIT(E) for the purpose of deciding the issue afresh after giving due opportunity to the assessee to present its case. Needless to say that the assessee shall fully cooperate with the department in an early disposal of the issue.

6.

In the final result, the assessee’s appeal stands allowed for statistical purposes.

The order is pronounced in the open court on 20th September, 2017.

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