HOLY ANGELS PUBLIC SCHOOL SAMITI,UTTAR PRADESH vs. ITO EXEMPTION WARD, GHAZIABAD

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ITA 2575/DEL/2023Status: DisposedITAT Delhi22 March 2024AY 2016-17Bench: the date of hearing, first appellate order under Section 250 of the Act was passed on 11.7.2023. Thus, the opportunity made available by the show cause notice was denied by passing the order before the expiry of the time made available in the show cause notice. The ld. counsel thus submitted that the first appellate order passed by the ld. CIT(A) grossly offends the principles of natural justice.2 pages

AI SummaryRemanded

Facts

The assessee challenged the denial of exemption under Sections 11 and 12 of the Income Tax Act, 1961 for AY 2016-17. The core grievance was that the CIT(A) passed an ex-parte order on 11.07.2023, prior to the scheduled hearing date of 14.07.2023, thereby denying the assessee an opportunity to be heard.

Held

The Tribunal found that the CIT(A)'s order, being passed before the expiry of the opportunity provided to the assessee, violated the principles of natural justice. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the matter back for fresh adjudication by the CIT(A) after affording the assessee a proper opportunity.

Key Issues

Whether the CIT(A) erred in passing an ex-parte order before the scheduled hearing date, violating principles of natural justice, thereby requiring the matter to be set aside and remanded for fresh adjudication.

Sections Cited

11, 12, 144, 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B” DELHI

Before: SHRI KUL BHARAT & SHRI PRADIP KUMAR KEDIA

For Appellant: Ms. Sweety Kothari, CA

For Respondent: Shri Vivek Kumar Upadhyay, Sr.DR

The captioned appeal is directed against the first appellate order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (‘CIT(A)’ in short) dated 11.07.2023 arising from the assessment order dated 18.12.2018 passed by the Assessing Officer (AO) under Section 144 of the Income Tax Act, 1961 (the Act) concerning AY 2016-17.

As per the grounds of appeal, the assessee has challenged the denial of exemption under Sections 11 and 12 on certain amount and has also raised certain other grounds.

3. At the time of hearing, the ld. counsel for the assessee straightaway pointed out that the appeal of the assessee has been adjudicated ex-parte by the CIT(A) on the ground that assessee has failed to respond to the various notices issued towards date of hearing. In the matter, the ld. counsel for the assessee pointed out that the last notice of hearing was issued on 06.07.2023 whereby the date of hearing was fixed on 14.07.2023. Before the date of hearing, first appellate order under Section 250 of the Act was passed on 11.7.2023. Thus, the opportunity made available by the show cause notice was denied by passing the order before the expiry of the time made available in the show cause notice. The ld. counsel thus submitted that the first appellate order passed by the ld. CIT(A) grossly offends the principles of natural justice.

4. We find prima facie merit in the plea of the assessee. It is evident from the first appellate order that the assessee was entitled to appear upto 14.07.2023. Thus, the first appellate order could not have been passed before the expiry of such time limit made available to the assessee. The first appellate order passed is thus in violation of principles of natural justice resulting in miscarriage of justice. We therefore set aside the order of the CIT(A) and restore the matter back to the file of the CIT(A) for fresh adjudication in accordance with law after giving proper opportunity to the assessee in this regard.