ARYA EDUCATION SOCIETY,GURGAON, HARYANA V. COMMISSIONER OF INCOME TAX (EXEMPTION), CHANDIGARH, CHANDIGARH

ITA 1381/CHANDI/2025

AI Insights

The case involves the Arya Education Society, which appealed against the order of the CIT(E), Chandigarh, rejecting their application for registration under section 12AB of the Income Tax Act. The Assessee argued that the CIT(E) had violated the principles of natural justice by not considering their adjournment request and by not considering their detailed reply submitted on the same day the order was passed. The Tribunal found that the CIT(E) had provided opportunities to the Assessee to furnish details/documents, which were not complied with, and imposed a cost of Rs. 5,000 on the Assessee. However, considering the submissions and the element of natural justice, the Tribunal decided to remand the matter back to the CIT(E) for a fresh decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835704 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 28-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANAV BANSAL
• Assessee Lawyers: BALDEV RAJ; MANEESH UPNEJJA; S
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

" आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1381/CHD/2025 U./s 12AB Arya Education Society, DAV High School, Khandsa Road, Gurgaon बनाम Vs. The CIT(E), Chandigarh èथायी लेखा सं./ PAN NO: AABTA2027N अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( HYBRID HEARING ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Baldev Raj & Sh. Maneesh Upnejja, CA’s (Virtually) राजèव कȧ ओर से/ Revenue by : Sh. Manav Bansal, CIT DR सुनवाई कȧ तारȣख/Date of Hearing : 12.02.2026 उदघोषणा कȧ तारȣख/Date of Pronouncement : 13.02.2026 आदेश/Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 14.10.2025 passed by the Ld. CIT, Exemptions, Chandigarh 2. Grounds of appeal, as raised by the Assessee are reproduced as under: Printed from counselvise.com 1381-Chd-2025 2 1. That on the facts and in circumstances and in law, the order dt. 14.10.2025 as passed by the Ld. CIT Exemption, Chandigarh [referred as \"The Ld. CIT (E)] is bad in law and void ab initio and liable to be quashed 2 That on the facts and in circumstances and in law, the Ld. CIT (E) erred in rejecting Appellant application of registration u/s 12A(1)(ac) (ii) of the Act. 3. That, on facts and in the circumstances of the case and in law, the Ld. CIT(E) erred in violating the principal of natural justice by not considering the adjournment request filed by the Appellant on 07.10.2025 seeking time up to 23.10.2025 and passing rejection order without granting requested adjournment. 4. That, on facts and in the circumstances and in law, the Ld. CIT(E) erred in not consider the detailed reply submitted by the Appellant on 14.10.2025 and proceeded to pass the order on the same day, i.e., 14.10.2025, thereby denying the Appellant a fair and reasonable opportunity of being heard 5. All the above-mentioned grounds are independent and without prejudice to others, and the appellant carves the right to add, alter, amend, and DLEETE the ground(s) of appeal during the course of hearing Printed from counselvise.com 1381-Chd-2025 3 3. During the proceedings before us, ld. Counsel for the Assessee submitted that the Ld. CIT(E), Chandigarh erred in violating the principal of natural justice by not considering the adjournment request filed by Assessee and passed the rejection order. It has further been submitted that the Ld. CIT(E) had not considered the detailed reply submitted by the Assessee and proceeded to pass the order on the same day, thereby denying the Assessee a fair and reasonable opportunity of being heard. Accordingly, a prayer has been made to remand the matter back to the CIT(E). 4. Per contra, Ld. DR relied on the order of the Ld. CIT(E). 6. We have considered the findings given by the Ld. CIT(E) in the order and we have also considered the arguments and facts brought on record by the ld. Counsel for the Assessee. We find from the order of the Ld. CIT(E) that in spite of opportunity afforded to the Assessee to furnish details / documents, the Assessee failed the submit the requisite information and, thus, in the absence Printed from counselvise.com 1381-Chd-2025 4 of the requisite submissions of the Assessee, the application of the Assessee for registration u/s 12AB of the Act was rejected by the Ld. CIT(E). From the order of the Ld. CIT(E) it is clear that opportunity was given to be Assessee but the Assessee did not comply with. We find that the Assessee neither filed the required details nor documents as sought by the Department. It is very serios thing where Assessee’s are not appearing nor filing the requisite information before the lower authorities and directly coming to the Tribunal. Therefore, as discussed with ld. AR during the proceeding, a cost of Rs. 5,000/- (Rs. Five thousand only) is imposed upon the Assessee, which is required to be deposited by the Assessee, in the ‘Poor Patient Welfare Fund’ maintained by PGIMER, Chandigarh within 15 days of receipt of this order. 7. However, on going through the material available on record and considering the submissions of the Assessee claiming that the reply of the Assessee was not considered by the Ld. CIT(E) and keeping in view the element of natural justice, we feel one more opportunity needs to be Printed from counselvise.com 1381-Chd-2025 5 provided to the Assessee to produce and furnish necessary documents / information before the Ld. CIT(E). 8. In view of this, the matter is restored to the file of the CIT(E) for decision afresh in accordance with law. Needless to say, that the ld. CIT(E) will give proper opportunity to the Assessee to present its case and to furnish necessary evidences and details. The Assessee is also directed to present its case before the Ld. CIT(E) as and when called for and will not contribute in unnecessary delay in the hearing of the appeal. 9. In the result, the appeal of the Assessee stands allowed for statistical purposes. Order Pronounced on 13.2.2026. Sd/- Sd/- ( LALIET KUMAR ) ( KRINWANT SAHAY) Judicial Member Accountant Member “आर.क े.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "