HANAFA KIND VISION TRUST, CHENNAI V. CIT (EXEMPTIONS), CHENNAI

ITA 166/CHNY/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1555 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 23-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: S VIDHYA
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . , BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ ITA NO.: 166/CHNY/2020 M/S. HANAFA KIND VISION TRUST, NO.58, VEERABADRAN STREET, NUNGAMBAKKAM, CHENNAI 600 034. PAN : AABTH6941E V. THE CIT(EXEMPTION), CHENNAI - 34. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SMT. S. VIDHYA, CA /RESPONDENT BY : SHRI S. BHARATH, CIT /DATE OF HEARING : 15.02.2021 /DATE OF PRONOUNCEMENT : 15 .02.2021 / O R D E R PER MAHAVIR SINGH, VP: THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTION), CHENNAI U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) VIDE ORDER DATED 12.12.2019. 2. WHEN THIS APPEAL WAS CALLED FOR HEARING, THE LD.COUNSEL FOR THE ASSESSEE, SMT. S. VIDHYA, CA, TOOK US THROUGH THE ORDER OF 2 I.T.A. NO.166/CHNY/2020 CIT(EXEMPTION) AND SHE PARTICULARLY REFERRED TO THE PARA NO.4, WHICH READS AS UNDER:- 4. IN THIS CASE, THE ASSESSEE HAS NOT TAKEN ANY OF THE ABOVE THREE OPPORTUNITIES GRANTED. IT WAS SPECIFICALLY MENTIONED IN THE SAID EMAIL THAT IN CASE OF FAILURE TO RESPOND / NON-COMPLIANCE IN THE ABOVE MENTIONED THREE DATES, FURTHER OPPORTUNITY WILL NOT BE GRANTED AND THE APPLICATION WOULD STAND REJECTED FOR NON-COMPLIANCE. AS THE CASE IS GETTING TIME BARRED BY LIMITATION AND THERE WAS NO RESPONSE FROM THE APPLICANT AS MENTIONED HEREIN ABOVE, IT IS NOT POSSIBLE TO PROCESS THE APPLICATION ANY FURTHER. THEREFORE, THE APPLICATION FOR REGISTRATION U/S.12AA IS REJECTED. IN VIEW OF THE ABOVE PARA NO.4 OF THE ORDER OF THE CIT(EXEMPTION), SHE STATED THAT THE ORDER U/S.12AA(1)(B)(II) OF THE ACT, REJECTING APPLICATION IN FORM 10A FOR REGISTRATION U/S.12AA OF THE ACT, DATED 12.06.2019, IS VIOLATION IN PRINCIPLE OF NATURAL JUSTICE, AS NO PROPER OPPORTUNITY OF BEING HEARD IS PROVIDED. WHEN THESE FACTS WERE CONFRONTED TO LD. SENIOR DEPARTMENTAL REPRESENTATIVE, HE READ OUT PARA NO.3 OF THE ORDER OF CIT(EXEMPTION) AND STATED THAT THREE OPPORTUNITIES WERE PROVIDED WITHIN A SPAN OF ONE MONTH AND FINALLY CASE WAS FIXED FOR HEARING ON 22.11.2019, ON WHICH DATE ALSO NONE WAS PRESENT. HENCE, HE REQUESTED THAT NO FURTHER OPPORTUNITY BE PROVIDED TO THE ASSESSEE. 3. AFTER HEARING BOTH SIDES AND GOING THROUGH THE FACT THAT THE ORDER OF CIT(EXEMPTION) IS EX-PARTE AND THERE IS NO 3 I.T.A. NO.166/CHNY/2020 DISCUSSION ON MERITS, BECAUSE THE ASSESSEE HAS NOT AVAILED THE OPPORTUNITIES PROVIDED TO IT. BUT, IN ANY CASE, IN THE INTEREST OF NATURAL JUSTICE, WE SET ASIDE THE ORDER OF CIT(EXEMPTION) DATED 12.12.2019 AND RESTORE THE MATTER BACK TO HIS FILE FOR FRESH ADJUDICATION. NEEDLESS TO SAY, THE ASSESSEE WILL FILE ALL THE DETAILS BEFORE CIT(EXEMPTION) AS AND WHEN CALLED UPON AND EVEN THE ASSESSEE CAN FILE THOSE DETAILS PRIOR TO HIS NOTICE, TO SHOW ITS BONAFIDE. THE ASSESSEE CAN REPRESENT AS AND WHEN CALLED FOR, IN PERSON. HENCE, THE MATTER IS RESTORED BACK TO THE FILE OF CIT(EXEMPTION) FOR DECIDING AFRESH. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 15 TH FEBRUARY, 2021 AT CHENNAI. SD/- SD/- ( . ) (G. MANJUNATHA) /ACCOUNTANT MEMBER ( ) (MAHAVIR SINGH) /VICE PRESIDENT /CHENNAI, /DATED, THE 15 TH FEBRUARY, 2021 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. /GF.