GEDEN JANG GUNCHOE SOCIETY,MUNDGOD vs. CIT, BANGALORE

This appeal is preferred by the assessee against the order of Commissioner of Income-tax (Exemptions) [“CIT(E)”], Bangalore dated 24.09.2015 denying registration u/s. 12AA of the Income-tax Act, 1961 [hereinafter called as “the Act”].

During the course of hearing, the ld. counsel for the assessee has invited our attention that CIT(E) has disposed of the application for registration u/s. 12A filed by the assessee without affording proper opportunity of being heard to the assessee. It was further contended that though assessee has filed all relevant record in order to justify that assessee is engaged in charitable activities before the AO, but the same were not placed by the AO before the CIT(E) and CIT(E) has not issued any notice of hearing while disposing of the application for registration of the assessee. Therefore, in the interest of justice, the order of CIT(E) be set aside and the matter restored to him for readjudication of the application for registration after affording opportunity of being heard to the assessee.

The ld. DR, on the other hand, has simply placed reliance on the order of CIT(E).

Having carefully examined the order of CIT(E) in the light of rival submissions, we find that CIT(E) has disposed of the application having observed that none appeared on behalf of the assessee, but he has not mentioned in his order as to when the notice of hearing was served upon the assessee. He has summarily dismissed the application for registration, having observed that assessee is not interested in prosecuting its application for registration. Since the CIT(E) has not given any finding with regard to service of notice before adjudicating the application for registration, we are of the view that one more opportunity should be afforded to the assessee to present its case before the CIT(E).

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