AADARSHINI FOUNDATION,NOIDA vs. CIT(E), LUCKNOW

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ITA 6276/DEL/2015Status: DisposedITAT Delhi12 May 20173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was prevented by a sufficient cause from appearing before the CIT(Exemptions) due to the Managing Trustee's illness. Therefore, the impugned order was set aside, and the matter was restored to the CIT(Exemptions) for fresh adjudication.

What were the facts?

The assessee applied for registration under Section 12AA of the Income Tax Act. The CIT(Exemptions) issued a notice for a hearing, but no one appeared on behalf of the assessee due to the Managing Trustee's illness. Consequently, the CIT(Exemptions) rejected the application ex parte.

What were the issues?

Whether the rejection of the registration application under Section 12AA was justified when the assessee failed to appear due to a valid reason like illness.

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 - ‘D’ NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI B.P. JAIN

For Respondent: Shri Naveen Chandra, CIT( DR)
Hearing: 11/05/2017Pronounced: 12/05/2017

This appeal by the assessee has been directed against the order of Ld. CIT(Exemptions), Lucknow dated 17th August, 2015 rejecting the application u/s 12AA of the I.T. Act.

2.

The assessee moved application for registration u/s 12AA of I.T. Act. Ld. CIT(Exemptions) issued a letter dated 10th July, 2015 calling for specific queries regarding its application for registration u/s 12AA of the I.T. Act for 17th August, 2015. However, on the date fixed on 17th August, 2015 no one appeared before Ld. CIT(Exemptions). Ld. CIT Aadarshini Foundation vs. CIT(E)

(Exemptions) therefore proceeded ex parte and rejected the application of assessee.

3.

We have heard Ld. Representatives of the parties.

4.

Ld. Counsel for assessee contended that the Managing Trustee of the Society Ms. Namrata Mukund had been suffering with eye problem for a long time and had also undergone surgery and later on also suffered from typhoid fever and jaundice and she remained in treatment and under bed rest. Therefore due to illness of the Managing Trustee, there were no compliance before Ld. CIT(E). He has therefore prayed that matter may be restored to the file of Ld. CIT(Exemptions) for fresh adjudication. On the other hand Ld. DR relied upon the impugned order.

5.

After considering rival submissions and considering the explanation of assessee, we are of the view matter requires reconsideration at the level of CIT(Exemptions). Ld. CIT(Exemptions) issued only one notice for 17th August, 2015 and in default of assessee pass the impugned order on the same date. The assessee has however explained the reasons for non appearance on the date of hearing.

Therefore we are satisfied that assessee was prevented by sufficient cause from appearing before Ld. CIT(Exemptions) on the date of hearing. We, accordingly, set aside the impugned order and restore the matter in issue to the file of Ld. CIT(Exemptions) with direction to re decide the application of assessee for registration in accordance with law by giving reasonable sufficient opportunity of being heard to the Aadarshini Foundation vs. CIT(E) assessee. Assessee is directed to cooperate with Ld. CIT(Exemptions) for disposal of the application and shall not seek unnecessary adjournment in the matter.

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

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