DELHI E- GOVERNANCE SOCIETY,DELHI vs. CIT EXEMPTION, DELHI

This appeal preferred by the assessees is directed against the order of the ld. Commissioner of Income-tax (Exemption), Delhi [for short ‘the ld. CIT (E)] dated 15.09.2023.

At the time of hearing, ld. AR for the assessee brought to our notice that the ld. CIT (E) rejected the assessee’s application in Form 10AB for registration/s 12A(1)(ac)(iii) of the Income-tax Act, 1961 (for short ‘the Act’) without appreciating the bonafide nature of the assessee’s activities and decided the issue against the assessee by observing that assessee has not pursued the appeal despite being granted several opportunities and the details are given in the first appellate order and dismissed the appeal in limine. He submitted that ld. CIT (E) has not decided the issue on merit and prayed that this issue may be remitted back to the ld. CIT(E) with the prayer to give an opportunity of being heard to the assessee. He submitted that there are reasons for assessee for not appearing before the first appellate authority.

On the other hand, ld. DR for the Revenue objected to the submissions of the ld. counsel for the assessee and submitted that assessee has not utilised several opportunities granted by ld. CIT (E).

Considered the rival submissions and material placed on record. We observe that ld. CIT (E) rejected the assessee’s application in Form 10AB for registration/s 12A(1)(ac)(iii) without appreciating the bonafide nature of the assessee’s activities and decided the issue ex-parte. In our considered view and in the interest of justice, assessee should be given one more opportunity of being heard on merit. Therefore, we direct ld. CIT (E) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. We also direct assessee to make proper submissions and appear before the ld.CIT (E) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.