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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
PER DUVVURU RL REDDY, Judicial Member :
The captioned appeal is filed by the assessee against the order of the Ld. CIT(Exemptions), Hyderabad vide DIN & Notice No. ITBA/EXM/F/EXM45/2022-23/1050958513(1), dated 19/03/ 2023.
2 2. Brief facts of the case are that the assessee has filed an e- application in Form No.10AB seeking registration U/s.12AB of the Income Tax Act, 1961 [the Act]. Subsequently, notice dated 2/1/2023 was issued in respect of the proceedings U/s. 12A(1)(ac)(iii) to the assessee to produce a copy of Memorandum of Association / Trust Deed for verification and furnish the detailed reply on the specific information called for in the said notice. In response, the assessee furnished the information and the same was verified by the Ld. CIT(E) who observed that the CPC has issued the Form No. 10AC dated 8/9/2022 valid from 2022-23 to 2024-25. In this regard, the Ld. CIT(E) issued another notice on 8/3/2023 and requested the assessee to reply and furnishe the information mentioned therein in writing on or before 10/3/2023. Considering the assessee’s no response, the Ld. CIT(E) passed the order on 19/3/2023 by holding that since there is no compliance from the assessee so far and has not filed any information or documentary evidence, the application filed by the assessee in form No.10AB seeking registration U/s. 12AB is hereby rejected. Aggrieved by the order of the Ld. CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds of appeal:
3 “1. The order of the Ld. CIT (E), Hyderabad is contrary to the facts and also the law applicable to the facts of the case.
The Ld. CIT(E) is not justified in rejecting the application filed by appellant in Form No. 10AB for Registration U/s. 12AB of the Act.
3. Any other ground that may be urged at the time of appeal hearing.”
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 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.
Hence, it was pleaded that the order passed by the Ld. CIT(E) does not call for any interference.
We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, we find that the 4 Ld. CIT (E) had posted the case on three 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 08/3/2023 and requested the assessee to furnish the information on or before 10/3/2023 which shows that there is hardly 02 days for the assessee to furnish the information before the Ld. CIT(E). Further, it is also pertinent to mention that the Ld. CIT(E) has passed the order on 19/3/2023. 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 Authorities. In this situation, we find strength in the arguments advanced by the ld. AR. Therefore, considering the prayer of the Ld. AR, strictly following the principles of natural justice and in the interest of justice, we hereby remit the matter back to the file of Ld. CIT (E) in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (E) in the proceedings failing which the Ld. CIT (E) shall be at liberty to pass
5 appropriate order in accordance with law and merits based on the materials on the record. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.
Pronounced in the open Court on 10th August, 2023.
Sd/- Sd/- (एस बालाकृ�णन) (दु�वू� आर.एल रे�डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सद�य/ACCOUNTANT MEMBER �या�यकसद�य/JUDICIAL MEMBER Dated :10/08/2023. OKK - SPS आदेश क� ��त�ल�प अ�े�षत/Copy of the order forwarded to:- 1. �नधा�रती/ The Assessee– Sri Chaganti Satsangam, D.No.5-122, Akondi Lakshmi Smarakam, Pithapuram, Thimmapuram, East Godavari Dist, Andhra Pradesh – 533005. 2. राज�व/The Revenue – Income Tax Officer, Aayakar Bhavan, Kambala Cheruvu, Veerabhadrapuram, Rajahmundry, Andhra Pradesh – 533105.
3. The Principal Commissioner of Income Tax, 4.आयकर आयु�त (अपील)/ The Commissioner of Income Tax (Appeals), 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, �वशाखापटणम/ DR, ITAT, Visakhapatnam 6.गाड� फ़ाईल / Guard file आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam