EDUMUST,JALANDHAR vs. COMMISSIONER OF INCOME TAX ( EXEMPTION), CHANDIGARH

Per Dr. M. L. Meena, AM:

The captioned appeals are filed by the assessee against the separate order of the ld. Commissioner of Income Tax (Exemptions), Chandigarh dated 16.03.2023 & 06.06.2019 rejecting the assessee’s application for

registration u/s 12AA of the Act.

2 ITA Nos. 137 & 138/Asr/2023 Edumust v. CIT 2. At the outset, the ld. counsel for the assessee has submitted that the

ld. CIT(E) was not justified on facts and law in rejecting assessee’s

application for registration of the trust u/s 12A of the Income Tax Act ex-

parte qua the assessee since the assessee has never received any

communication of notices queries raised by the ld. CIT(E). Therefore, there

was no wilful default in non-compliance of the impugned

notices/communications as stated by the ld. CIT(E) in the impugned order.

The counsel has argued that when the substantial justice and technical

consideration are pitted against each other, the cause of substantial

justice/consideration deserves to be preferred and under the circumstances

the applicant trust cannot be denied justice for a bonafide non compliance if

any in the absence of any communications of notices since it does not

stand to benefit by resorting to delay or non-compliance to the any notices

issued by the CIT(E). He, accordingly, prayed that both the appeals may be

remanded back to the ld. CIT(E) for fresh adjudication in view of the

principles of natural justice.

assessee, although he supported the impugned order.

3 ITA Nos. 137 & 138/Asr/2023 Edumust v. CIT 4. We have heard the rival contentions, perused the material on record

and the impugned orders. Admittedly, the ld. CIT(E) has passed the order

ex-parte qua the assessee in both the appeals. We find that none of the

notices have been served upon the assessee to enable him to make

compliance to the queries of the CIT(E) as per the notices mentioned in the

impugned order. In view of the principles of natural justice, we consider it

deem fit to remand the matter back to the file of the CIT(E) to adjudicate

the issue afresh for the cause of substantial justice after granting sufficient

opportunity of being heard to the assessee after considering the paper

book comprising of 75 pages filed on record and may be filed during the

course of fresh proceedings. The assessee is directed to cooperate in the

proceedings before the ld. CIT(E). Accordingly, both the captioned appeals

are restored to the CIT(E) for adjudication as per law.

for statistical purpose.

Order pronounced in the open court on 25.08.2023

Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr.PS*

4 ITA Nos. 137 & 138/Asr/2023 Edumust v. CIT Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(Appeals) (4) The CIT concerned (5) The Sr. DR, I.T.A.T. True Copy By Order