SRI PALAVADI SASTHA SEVA SAMAJAM TRUST, CHENNAI V. THE CIT(EXEMPTIONS), CHENNAI

ITA 103/CHNY/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2554 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 15-04-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside

Judgement Text

आयकर अपील य अ धकरण, ‘बी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘B’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद%य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I. T. A. No. 1 0 3/ Chn y/ 2 0 2 1 ( नधा रणवष / A s s e s sm e nt Yea r : 2 0 1 9- 2 0 ) Sri Palavadi Sastha Seva Samajam Trust, F3, Arjitham Apartment. 2 Sundaramurthy Street, Vanuvampet, Adambakkam Chennai-600 088. V s The Commissioner of Income Tax (Exemptions), Chennai-600 034. P AN: A AV TS 5 2 2 2 R (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : None यथ क ओरसे/Respondent by : Mr. R.N. Siddappaji, CIT DR स ु नवाईक तार ख/D a t e o f h e a r i n g : 27.04.2022 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 11.05.2022 आदेश / O R D E R PER G. MANJUNATHA, AM: This appeal filed by the assessee is directed against order passed by the Commissioner of Income Tax (Exemption), Chennai, dated 31.01.2019 and pertains to assessment year 2019-20. 2. Brief facts of the case are that the assessee is a trust filed application in Form No.10A for registration u/s.12AA of the Income Tax Act, 1961. During the course of proceedings before the CIT (Exemptions), while processing application, the assessee was called upon to furnish necessary clarification/explanation and accordingly, e-mail communication 2 ITA No. 103/Chny/2021 dated 23.10.2018 was sent to the assessee. The assessee neither appeared nor filed any details. Therefore, the CIT (Exemption) has rejected application filed by the assessee in Form No.10A for registration of trust u/s.12AA of the Income Tax Act, 1961. Aggrieved by the learned CIT (Exemption) order, the assessee is in appeal before us. 3. None appeared for the assessee. We have heard learned DR and perused order passed by the CIT (Exemption) u/s.12AA(1)(b)(ii) of the Income Tax Act, 1961, dated 31.01.2019. We find that CIT (Exemption) has disposed off application filed by the assessee in Form No.10A for registration of trust u/s.12AA of the Act, without providing reasonable opportunity of hearing to the assessee, which is evident from fact that the CIT (Exemption) has given one opportunity of hearing to the assessee. No doubt, when the assessee/applicant does not show any interest in pursuing its case, then the authorities have left with no option, but to complete proceedings on the basis of materials available on record in accordance with law, but such proceedings should be completed after giving reasonable opportunity of hearing to the 3 ITA No. 103/Chny/2021 assessee in light of principles of natural justice. In this case, the CIT (Exemption) has neither given sufficient opportunity of hearing to the assessee nor decided eligibility of the assessee trust for registration u/s.12AA of the Income Tax Act, 1961. Therefore, we are of the considered view that the issue needs to go back to the CIT (Exemption) for fresh consideration. Hence, we set aside order passed by the CIT (Exemption) and restore the issue back to the file of CIT (Exemption) to reconsider the issue afresh in accordance with law, after providing reasonable opportunity of hearing to the assessee. 4. In the result, appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 11 th May, 2022 Sd/- Sd/- ( महावीर संह ) ( जी. मंज ु नाथ ) (Mahavir Singh) (G. Manjunatha ) उपा य / Vice-President लेखा सद%य / Accountant Member चे'नई/Chennai, (दनांक/Dated 11 th May, 2022 DS आदेश क त*ल+प अ,े+षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु -त (अपील)/CIT(A) 4. आयकर आय ु -त/CIT 5. +वभागीय त न1ध/DR 6. गाड फाईल/GF.