Sri Guru Har Rai Ji Religious and Charitable Trust, Chandigarh V. CIT(E), Chandigarh

ITA 1430/CHANDI/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3051 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 07-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR G S PHANI KISHORE CIT
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 80G

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH (VIRTUAL COURT) .., ! '# $ %', ! BEFORE: SHRI. N.K.SAINI, VP & SHRI , RAJPAL YADAV, VP ITA NO.1430/CHD/2019 ASSESSMENT YEAR : 2019-20 SRI GURU HAR RAI JI RELIGIOUS AND CHARITABLE TRUST, # 1431, SECTOR 40-B, CHANDIGARH THE CIT (EXEMPTIONS), CHANDIGARH PAN NO: AAKTS8660A APPELLANT RESPONDENT !' ASSESSEE BY : SHRI TEJMOHAN SINGH, ADVOCATE #!' REVENUE BY : DR. G.S. PHANIKISHORE, CIT $ %! & DATE OF HEARING : 17/11/2020 '()*! & DATE OF PRONOUNCEMENT : 17/11/2020 %&/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(E) - CHANDIGARH DT. 26-09-2019. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L: 1. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTI ONS) HAS ERRED IN LAW IN PASSING AN EX-PARTE ORDER REJECTING THE APPROVAL SO UGHT UNDER SECTION 80G WHICH IS AGAINST THE PRINCIPALS OF NATURAL JUSTICE AND AS SUCH THE ORDER PASSED IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 2. WITHOUT PREJUDICE TO THE ABOVE, THE LD. COMMISSI ONER OF INCOME TAX HAS ERRED IN LAW AS WELL AS ON FACTS IN REJECTING THE A PPROVAL SOUGHT UNDER SECTION 80G OF THE ACT WHICH IS ARBITRARY & UNJUSTIFIED. 3. THAT THE APPROVAL HAS BEEN REFUSED ONLY ON THE B ASIS OF SUSPICION, CONJECTURES AND SURMISES AS IS EVIDENT FROM THE VAR IOUS UNFOUNDED FINDINGS AS ENUMERATED IN THE BODY OF THE ORDER WHICH IS NOT PE RMITTED UNDER THE LAW AND AS SUCH THE ORDER REFUSING APPROVAL IS ILLEGAL, ARB ITRARY AND UNJUSTIFIED. 2 4. THAT THE LD. COMMISSIONER OF INCOME TAX(EXEMPTIO NS) HAS ERRED IN HOLDING THAT THE TRUST IS RELIGIOUS IN NATURE AND IS INCURR ING EXPENSES ON RELIGIOUS ACTIVITIES THEREBY NOT QUALIFYING THE CONDITION MENTIONED IN S UB SECTION (5) OF SECTION 80G WHICH IS ARBITRARY AND UNJUSTIFIED. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF. 6. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 3. THE MAIN GRIEVANCE OF THE ASSESSEE VIDE GROUND NO. 1 RELATES TO THE IMPUGNED ORDER PASSED BY THE LD. CIT(E) WITHOUT PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD. 4. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE M OVED AN APPLICATION DT. 04/01/2017 FOR REGISTRATION UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT). HOWEVER THE LD. CIT(E) REJECTED THE SAME BY OBSERVING THAT THE CASE WAS FIXED FOR HEARING ON 16 /09/2019 VIDE NOTICE DT. 12/09/2019 TO FURNISH THE INFORMATION. HOWEVER, NEI THER ANYBODY ATTENDED NOR ANY ADJOURNMENT WAS RECEIVED. 5. NOW THE ASSESSEE IS IN APPEAL. 6. LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET SUBMITTED THAT THE NOTICE FOR HEARING ON 16/09/2019 WAS NOT SERVED UPON THE A SSESSEE, THEREFORE THE LD. CIT(A) WAS NOT JUSTIFIED IN REJECTING THE APPLICATI ON MOVED BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 80G OF THE ACT. 7. IN HIS RIVAL SUBMISSIONS THE LD. CIT DR SUPPORTE D THE IMPUGNED ORDER PASSED BY THE LD. CIT(E) AND REITERATED THE OBSERVA TIONS MADE THEREIN. 8. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE, IT IS NOTICED THAT THE LD. CIT(E) MENTIONED IN THE IMPUGNED ORDER THAT THE NOT ICE FOR HEARING DT. 12/09/2019 WAS SENT TO THE ASSESSEE FOR HEARING ON 16/09/2019 AND NOBODY 3 APPEARED ON THE SAID DATE. HE, THEREFORE PASSED THE IMPUGNED ORDER EXPARTE. HOWEVER, NOTHING IS BROUGHT ON RECORD THAT NOTICE D ATED 12/09/2019 FOR HEARING ON 16/09/2019 WAS SERVED UPON THE ASSESSEE. IT IS W ELL SETTLED THAT NOBODY SHOULD BE CONDEMNED, UNHEARD AS PER THE MAXIM, AUD I ALTERAM PARTEM . 9. WE THEREFORE BY KEEPING IN VIEW THE PRINCIPLES O F NATURAL 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. 10. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 17/11/2020) . SD/- SD/- $ %' .., (RJAPAL YADAV ) ( N.K. SAINI) ! / VICE PRESIDENT ! / VICE PRESIDENT AG DATE: 17/11/2020 (+! ,-.- 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