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Income Tax Appellate Tribunal, DELHI BENCH ‘G’ : NEW DELHI
Before: SHRI H.S. SIDHU & SHRI ANADEE NATH MISSHRA
ORDER PER H.S. SIDHU, JM
The Assessee has filed the Appeal against the Order dated 01.09.2011 of the Ld. Director of Income Tax (Exemptions), Delhi on the following grounds:-
1. That the Ld. DIT(E) erred both in law and on the facts
in rejecting the application for registration u/s. 12A of the Income Tax Act, 1961 without providing due, proper and reasonable opportunity of being heard before rejecting the application for registration.
2. That the Ld. DIT(E) erred both in law and on the facts
in disposing off the application for registration u/s. 12A for non- appearance on 8.6.2011 when an application for adjournment was sent on 7.6.2011 by Speed Post AD which was duly received in his office on 8.6.2011 and in not providing further opportunity of being heard.
That the orders of the Ld. DIT(E) is bad in laws and on the facts of the case.
4. That the orders passed in erroneous, illegal, against
the principles of natural justice and equity and the well settled laws.
5. The appellant may kindly be permitted to add more at the time of hearing of appeal.
Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of brevity.
3. At the time of hearing Ld. Counsel of the assessee has stated that Ld. Director of Income Tax (Exemptions) has passed the impugned order without providing sufficient opportunity to the assessee. He further stated that the order passed by the Ld. DIT(E) is non-speaking order. He stated that the assessee is having all necessary evidences for substantiating the claim before the Ld. Director of Income Tax (Exemptions) and he requested that issue in dispute may be set aside to the file of the DIT(E), Delhi to provide sufficient opportunity for substantiating its claim before him.
4. On the contrary, Ld. DR strongly opposed the request of the Ld. Counsel of the assessee and stated that assessee did not cooperate the Ld. DIT(E) in the proceedings, hence, the appeal of the Assessee may be dismissed accordingly.
We have heard both the parties and perused the records. We have gone through the order passed by the revenue authorities especially the impugned order and we find that ld. DIT(E) has rejected the Application u/s. 12AA of the assessee in the absence of evidences, bills and vouchers in support of activities done. For ready reference, we are reproducing the relevant para no. 2 to 4 at Page no. 1 & 2 of the impugned order as under:-
“2. On 12.05.2011, the AR of the society appeared and sought adjournment. On his request, the case was adjourned to 20.05.2011. On 20.05.2011, Shri J.K.
Jain, CA appeared and sought adjournment. On his request the case was adjourned to 08.6.2011. Till date no compliance has been made by the applicant.
3. The provisions of section 12AA stipulate the following conditions for registration u/s. 12A of the I.T. Act, 1961:-
i) The objects of the society should be of charitable in nature; ii) The activities of the society should be genuine.
On perusal of the details filed by the applicant, it is revealed that the society / trust has submitted
accounts only. In absence of the evidence and bills and vouchers in support of activities done and other details called by this office, the genuineness of the claim of the trust/society to be a charitable trust is not established. Accordingly, the application filed by the applicant for grant of registration u/s. 12AA is hereby rejected.”
5.1 After perusing the aforesaid findings, we are of the view that sufficient opportunity has not been given by the Ld. Director of Income Tax (Exemptions) to the assessee for substantiating its claim before the ld. DIT(E) which is not sustainable in the eyes of law and against the principles of natural justice. We also find considerable cogency in the arguments of the Ld. Counsel for the assessee. Therefore, in the interest of justice, we are of the view that in this case the issues in dispute needs to be remitted back to the file of the Ld. DIT(E) to decide the same afresh, as per law.
Accordingly, the issues in dispute are set aside and restored back to the file of the Ld. DIT(E) and the Ld. DIT(E) is directed to consider the issues in dispute afresh after giving adequate opportunity to the assessee.
5.2 Keeping in view of the facts and circumstances of the case, the Assessee is also directed through his Counsel to be present before the Ld. DIT(E) on 17.07.2017 at 10.00 AM and fully cooperate with the Ld. DIT(E) and did not take any unnecessary adjournment and file all the necessary papers/evidences before him to substantiate its case.
In the result, Assessee’s appeal is allowed for statistical purposes. Order pronounced in Open Court on this 19-04-2017.