Gurudwara Langar Sahib Parbhandhak Committee, Sangrur V. CIT(Exemption), Chandigarh

ITA 1120/CHANDI/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4456 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 13-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C CHANDRAKANTA CIT
• Keywords: Opportunity of being heard; Set aside; Audi alteram partem
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH A, CHANDIGARH (VIRTUAL COURT) .., !' '# $, % &' BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, J M ITA NO. 1120/CHD/2019 ASSESSMENT YEAR : 2018-19 GURUDWARA LANGAR SAHIB PARBHANDHAK COMMITTEE C/O NARESH KUMAR GARG, ADVOCATE H.NO. , RAILWAY ROAD, SANGRUR- 148001, PUNJAB THE CIT(E) 5 TH FLOOR, C.R. BUILDING SECTOR-17, CHANDIGARH PAN NO: APPELLANT RESPONDENT !' ASSESSEE BY : SHRI VIBHOR GARG, CA #!' REVENUE BY : SMT. C. CHANDRAKANTA, CIT $ %! & DATE OF HEARING : 20/10/2020 '()*! & DATE OF PRONOUNCEMENT : 20/10/2020 &(/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT. 12/06/2019 OF LD. CIT(E), CHANDIGARH. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L: 1. THAT THE IMPUGNED ORDER IS BAD BOTH ON FACTS AND LA W. 2. THAT THE LD. CIT(EXEMPTIONS) HAS WRONGLY AND ILLEGA LLY REJECTED THE APPLICATION U/S 12AA ON IRRELEVANT GROUNDS AND FAIL ED TO CONSIDER THE DETAILED REPLY OF THE QUESTIONNAIRE CONTAINING 36 QUERIES. 3. THAT THE LD. CIT(EXEMPTIONS) HAS WRONGLY AND ILLEGA LLY PASSED THE EX-PARTY ORDER WITHOUT A PROPER AND REASONABLE OPPORTUNITY O F HEARING. 4. THAT THE APPELLANT CRAVES PERMISSION TO ADD, AMEND, ELUCIDATE ANY GROUND OF APPEAL AT THE TIME OF HEARING. 2 3. THE MAIN GRIEVANCE OF THE ASSESSEE VIDE GROUND N O. 3 RELATES TO THE EXPARTE ORDER PASSED BY THE LD. CIT(E) WITHOUT PROP ER AND REASONABLE OPPORTUNITY OF BEING HEARD GIVEN TO THE ASSESSEE. 4. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE MOVED AN APPLICATION IN FORM NO. 10A ELECTRONICALLY ON 24/12/2018 SEEKING R EGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFER RED TO AS ACT). 5. THE LD. CIT(E) ASKED THE ASSESSEE ABOUT THE ACTI VITY AND OBJECT VIDE QUESTIONNAIRE DT. 08/02/2019 ISSUED THROUGH ONLINE PORTAL. THE LD. CIT(E) AGAIN ASKED THE ASSESSEE ON 05/03/2019 TO PROVIDE CLARIFI CATION TO THE QUERIES RAISED. THE LD. CIT(E) OBSERVED THAT THE ASSESSEE FURNISHED THE REPLY THROUGH ITBA ON 06/03/2019. HE AGAIN ASKED THE ASSESSEE TO FURNISH FURTHER CLARIFICATION BY 27/05/2019 THROUGH THE QUESTIONNAIRE CLAIMED TO BE SENT TO THE ASSESSEE ON 21/05/2019 THROUGH ITBA. SINCE THERE WAS NO COMPLIA NCE THE LD. CIT(E) REJECTED THE APPLICATION MOVED BY THE ASSESSEE. 6. NOW THE ASSESSEE IS IN APPEAL. 7. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE NOTICE FOR HEARING ON 27/05/2019, WAS NOT RECEIVED BY THE ASSESSEE, THERE FORE THE LD.CIT(E) WAS NOT JUSTIFIED IN REJECTING THE APPLICATION MOVED BY THE ASSESSEE, EXPARTE. 8. IN HER RIVAL SUBMISSIONS THE LD. CIT DR STRONGLY SUPPORTED THE IMPUGNED ORDER PASSED BY THE LD. CIT(E) AND SUBMITTED THAT T HE ASSESSEE DID NOT COOPERATE AND HAD NOT AVAILED OPPORTUNITY OF BEING HEARD GRANTED BY THE LD. CIT(E). SO THERE WAS NO ALTERNATIVE EXCEPT TO REJEC T THE APPLICATION MOVED BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. 9. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE THE MAIN CONTENTION OF THE ASSESSEE IS THAT THE NOTICE DATED 21/05/2019 FOR HE ARING ON 27/05/2019 WAS NOT 3 SERVED UPON THE ASSESSEE. IT IS WELL SETTLED THAT N OBODY SHOULD BE CONDEMNED, UNHEARD AS PER THE MAXIM, AUDI ALTERAM PARTEM . 10. WE THEREFORE KEEPING IN VIEW THE PRINCIPLE OF N ATURAL JUSTICE DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF LD. CIT(E) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE A ND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 20/10/2020 ) SD/- SD/- '# $ .., (SANJAY GARG ) ( N.K. SAI NI) % &'/ JUDICIAL MEMBER / VICE PRESIDENT AG DATE: 20/10/2020 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE (+ $ BY ORDER, ; # ASSISTANT REGISTRAR