DHALIWAL HEALTHCARE SOCIETY ,MOHALI V. CIT (EXEMPTIONS), CHANDIGARH, CHANDIGARH

ITA 910/CHANDI/2024

AI Insights

The case involves Dhaliwal Healthcare Society, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chandigarh, who had rejected their application for registration under section 80G(5)(iii) of the Income Tax Act, 1961. The primary contention was that the rejection was made without any substantial basis and without providing the society an opportunity to be heard, which is a fundamental right under the principle of 'audi alteram partem'. The tribunal noted that the notices were not properly acknowledged by the assessee due to issues with the ITBA portal, leading to non-compliance with the procedural requirements. Consequently, the tribunal remanded the case for a fresh hearing, emphasizing the need for adherence to natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 28803 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ROHIT SHARMA; VIRTUAL
• Assessee Lawyers: PANKAJ BHALLA; VIRTUAL
• Keywords: Principle of natural justice

Judgement Text

" आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 910/CHD/2024 Ǔनधा[रण वष[ / Assessment Year : 2025-26 Dhaliwal Healthcare Society, Chiddi Mar Mohalla, Sector 78, VPO Sohana, SAS Nagar, Mohali 140308 Vs. बनाम The CIT (Exemptions), Chandigarh èथायी लेखा सं./PAN No: AAETD3076B अपीलाथȸ/ APPELLANT Ĥ×यथȸ/ REPSONDENT ( Virtual Hearing ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Pankaj Bhalla, CA (Virtual) राजèव कȧ ओर से/ Revenue by : Shri Rohit Sharma, CIT DR (Virtual) सुनवाई कȧ तारȣख/Date of Hearing : 06.02.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 24. 02.2025 आदेश/Order Per Krinwant Sahay, A.M.: The appeal in this case has been filed by the Assessee against the order dated 05.07.2024 of the ld. Commissioner of Income Tax (Exemptions), Chandigarh 2. Ground of appeal are as under: - 1. That the Chandigarh Commissioner of Income Tax (exemptions) erred in law and facts in rejecting the application made u/s 80G(5)(iii) of the Income Tax Act, 910-Chd-2024 – Dhaliwal Healthcare Society, Mohali 2 1961 of Assessee Society to grant registration for the said purpose without any base and reason thereof. 1.1 That the Order was passed by C.I.T. (exemptions) without affording an opportunity of being heard, in contravention to the principle of natural justice i.e. \"audi altem patrem\" 2. That the appellant craves, leave to vary, alter or add any grounds of appeal. 3. At the very outset, ld. Counsel for the Assessee submitted during the proceedings before us that the ld. CIT(E) has passed the order without hearing the Assessee. The ld. CIT DR vehemently argued and stated that various opportunities have been provieded to the Assessee but the Assessee did not comply with the notices issued by the ld. CIT(E). In response, the Counsel of the Assessee has stated that all the notices were issued on ITBA portal and it is seen from the Income Tax Portal that the notice were delivered on Assessee’s portal. The ld. Counsel for the Assessee further submitted that the Assessee could not see the notices on the portal and, therefore, no compliance was made. The ld. counsel further prayed the Bench that the matter may be remanded back to CIT(E) for passing an order on merit after giving opportunity to the Assessee. 4. We have considered the request made by the Counsel of the Assessee. We have also gone through the order passed by the CIT(E) 910-Chd-2024 – Dhaliwal Healthcare Society, Mohali 3 and the arguments made by the ld. DR. We find that the order passed by ld. CIT(E) is ex-parte order and the Assessee could not place required documents on record before the ld. CIT(E). Therefore, in the fitness of things and keeping in view the element of natural justice, the case is remanded back to CIT(E) for adjudication afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(E). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. The appeal of the Assessee is allowed for statistical purposes. 5. In the result, the appeal is allowed for statistical purposes. Order pronounced on 24.02.2025 ( RAJPAL YADAV ) ( KRINWANT SAHAY) Vice President 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 आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "