Sri Guru Raaj Sewa Ashram Trust, Chandigarh V. CIT(E), Chandigarh

ITA 1558/CHANDI/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5318 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 06-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S PHANI KISHORECIT
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside; Audi alteram partem
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH .., ! '# . . , $ % & BEFORE: SHRI. N.K.SAINI, VP & SHRI. R.L. NEGI, JM ITA NO. 1558 /CHD/2019 ASSESSMENT YEAR : 2019-20 SRI GURU RAAJ SEWA ASHRAM TRUST C/O SH. TEJMOHAN SINGH, ADVOCATE, #527, SECTOR-10-D, CHANDIGARH THE CIT(E) SECTOR-17 CHANDIGARH PAN NO: AAMTS7234C APPELLANT RESPONDENT !' ASSESSEE BY : SHRI TEJMOHAN SINGH, ADVOCATE #!' REVENUE BY : SHRI G.S. PHANI KISHORE, CIT $ %! & DATE OF HEARING : 07/10/2020 '()*! & DATE OF PRONOUNCEMENT : 07/10/2020 %'/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT. 18/11/2019 OF THE LD. CIT(E), CHANDIGARH. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERRED I N LAW AS WELL AS ON FACTS IN REJECTING APPLICATION FOR REGISTRATION UND ER SECTION 12AA OF THE ACT EX- PARTE WITHOUT AFFORDING PROPER OPPORTUNITY OF HEARI NG WHICH IS ARBITRARY & UNJUSTIFIED. 2. THAT THE LD. COMMISSIONER OF INCOME TAX EXEMPTIONS HAS ERRED IN OBSERVING THAT THE ASSESSEE DID NOT FILE ANY REPLY WHICH IS CONTRARY TO THE FACTS ON RECORD AND AS SUCH THE ORDER PASSED IS ARBITRARY AN D UNJUSTIFIED. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF. 4. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE . 2 3. THE MAIN GRIEVANCE OF THE ASSESSEE RELATES TO THE RE JECTION OF THE APPLICATION MOVED UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) VIDE IMPUGNED ORDER BY THE LD. CIT(E) BY PASS ING THE EX-PARTE ORDER. 4. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE LD. CIT(E)WITHOUT AFFORDING THE DUE AND REASONABLE OPPORTUNITY OF BEING HEARD REJECTED THE APPLICATION MOVED BY THE ASSESS EE WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. HE REQUESTED TO RESTOR E THE MATTER BACK TO THE FILE OF THE LD. CIT(E) TO BE ADJUDICATED AFRESH BY PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD. 5. IN HIS RIVAL SUBMISSIONS THE LD. DR STRONGLY SUPPORT ED THE IMPUGNED ORDER PASSED BY THE LD. CIT(E) AND ALSO SUBMITTED THAT AMPLE OPPOR TUNITIES OF BEING HEARD WERE PROVIDED BUT THE ASSESSEE DID NOT AVAIL THE SAME, THERE FORE, THERE WAS NO ALTERNATIVE EXCEPT TO DECIDE THE APPLICATION OF THE ASSESSEE BY PA SSING THE EXPARTE ORDER. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIE S AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRE SENT CASE IT IS AN ADMITTED FACT THAT THE LD. CIT(E) PASSED THE IMPUGNED ORDER EXPARTE. HE SIMPLY STATED THAT THE CASE WAS FIXED FOR HEARING ON 31/10/2019 AND FINALLY ON 07/ 11/2019. HOWEVER NOTHING IS BROUGHT ON THE RECORD TO SUBSTANTIATE THAT THE NOTICE FOR HEARING WAS SERVED UPON THE ASSESSEE. IT IS WELL SETTLED THAT NOBODY SHOULD BE CO NDEMNED, UNHEARD AS PER THE MAXIM, AUDI ALTERAM PARTEM . 7. WE THEREFORE BY KEEPING IN VIEW THE PRINCIPLES OF NA TURAL JUSTICE, DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF LD. CIT(E) TO BE ADJUDICATED AFRESH 3 IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 07/10/2020 ) SD/- SD/- . . .., (R.L. NEGI ) ( N.K. SAINI) $ %&/ JUDICIAL MEMBER ! / VICE PRESIDENT AG DATE: 07/10/2020 (+! ,-.- 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