PARIVARTHAN,KAKINADA vs. INCOME TAX OFFICER (EXEMPTION WARD), RAJAHMUNDRY

Both the captioned appeals are filed by the assessee against the orders of the Ld. CIT(Exemptions), Hyderabad vide DIN & Notice No. ITBA/EXM/F/EXM45/2022-23/1050957403(1), dated 19/03/ 2023 and ITBA/EXM/F/EXM45/2022-23/1050957267(1) dated 19/03/2023 [ITA No. 154 & 155/Viz/2023 respectively].

Brief facts relevant to the are that the assessee has filed an e-application in Form No.10AB seeking registration U/s. 80G(5) of the Income Tax Act, 1961 [the Act] before the Ld. CIT(Exemptions), Hyderabad. Thereafter, notices dated 8/12/2022 & 6/1/2023 were issued to the assessee in respect of the proceedings U/s. 12A(ac)(iii) to produce the copy of Memorandum of Association / Trust Deed for verification. In response, according to the Ld. CIT(E), the assessee has submitted partial information and on verification of the information furnished by the assessee, the Ld. CIT(E) called for some other relevant information vide notice dated 27/2/2023. In reply, the assessee submitted that the information called for by the Ld. Revenue Authorities was already furnished by the assessee in their earlier correspondences and the same may be treated as full and complete response. Thereafter, the Ld. CIT(E) issued a show cause letter dated 13/3/2023 and the assessee was asked to submit the information mentioned therein. It was also mentioned in the show cause letter that the assessee has to reply in writing

At the outset, the Ld. AR submitted before us that the Ld. CIT (E) has passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (E) in order to provide one more opportunity to the assessee of being heard. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that sufficient opportunities had been provided to the assessee however, on 4 the given dates of hearing, neither the assessee nor its Representative filed any information / documentary evidence as called for by the Ld. CIT(E). It was further submitted that the Ld. CIT (E) had no other option but to pass ex-parte order based on the materials available on record.

We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, we find that the Ld. CIT (E) had posted the case on four occasions. However, there was no response on behalf of the assessee before the Ld. CIT(E) on the given dates of hearing. Therefore, the Ld. CIT (E) was left with no other option except to adjudicate the appeal ex-parte. On perusal of the Ld. CIT(E)’s order, we have observed and find it relevant to mention here that the Ld. CIT(E) has issued the show cause notice on 13/3/2023 and requested the assessee to furnish the information on or before 17/3/2023 which shows that there is hardly 4 days for the assessee to furnish the information before the Ld. CIT(Exemptions). It is also pertinent to mention that the Ld. CIT(E) has passed the order on 19/03/2023. In our considered opinion, following the principles of natural justice, the Ld. CIT(E) ought to have given sufficient time or one more opportunity to the assessee to furnish the information as required by the Ld. Revenue

In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.

With respect to since the assessee has raised the identical grounds and the issues raised are also similar to that of the assesee’s appeal in ITA No. 154/Viz/2023 (supra), considering the similar facts and circumstances involved in both the cases, our decision given in the assessee’s appeal in ITA No. 154/Viz/2023 mutatis mutandis applies to the assessee’s appeal in ITA No. 155/Viz/2023 also. Thus, the appeal in ITA No. 155/Viz/2023 is allowed for statistical purposes.

In the result, both the appeals of the assessee are allowed for statistical purposes.