DEMOCRATIC COUNCIL, JALANDHAR V. COMMISSIONER OF INCOME-TAX(EXEMPTIONS), CHANDIGARH

ITA 171/ASR/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0367 (ITAT-AMRITSAR)
• Duration Of Justice: 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 12-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M P S INGH LD
• Assessee Lawyers: PUNEET OBEROI LD
• Keywords: Opportunity of being heard; Principle of natural justice; Onus to prove
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, AMRITSAR (VIRTUAL COURT) BEFORE: SHRI. N.K. SAINI, VICE PRESIDENT AND SHRI N.K. CHOUDHRY, JUDICIAL MEMBER ITA NO. 171/ASR/2020 ASSESSMENT YEAR: 2020-21 DEMOCRATIC COUNCIL 732/9C, GURU TEG BAHADUR NAGAR HOUSING ROAD COLONY JALANDHAR 144004 PUNJAB [PAN NO: AACAD 5684L] VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH (APPELLANT) (RESPONDENT) APPELLANT BY : SH. PUNEET OBEROI (LD. C.A .) RESPONDENT BY: SH. M. P. SINGH (LD. CIT- DR ) DATE OF HEARING: 25.11.2020 DATE OF PRONOUNCEMENT: 25.11.2020 ORDER PER N.K. CHOUDHRY, JM: THIS APPEAL HAS BEEN PREFERRED BY THE APPELLANT/ASSESSEE AGAINST THE ORDER DATED 16-09-2020 IMPUGNED HEREIN PASSED BY THE LD. CIT(E), CHANDIGARH U/S. 12AA(1)(B)(II) OF T HE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT) FOR THE AF ORESAID ASSESSMENT YEAR, WHEREBY THE LD. CIT(E) DISMISSED THE APPLICATION OF THE APPELLANT FOR REGISTRATION UNDER SE CTION 12A OF THE ACT. 2. IT APPEARS FROM THE IMPUGNED ORDER THAT THE APPLICA TION FOR REGISTRATION U/S 12A OF THE ACT WAS FILED ON 16-01- 2020 WHICH WAS TAKEN INTO CONSIDERATION AND QUESTIONNAIRE WAS ISSUED ITA NO. 171/ASR/2020 DEMOCRATIC COUNCIL V. CIT(E) 2 THROUGH ONLINE PORTAL ON 19-02-2020 WITH OPPORTUNIT Y OF MAKING REQUISITE SUBMISSIONS BY 06-03-2020, WHICH REMAINS UN- COMPLIED. THEREAFTER LD. CIT(E) FIXED THE PROCEEDINGS FOR HEARING ON VARIOUS DATES, HOWEVER ON MOST OF THE DATES, THE APP ELLANT NEITHER ATTENDED THE PROCEEDINGS NOR FILED ANY ADJOUR NMENT APPLICATION AND THEREFORE THE LD. CIT(E) REJECTED THE APPLICATION FOR GRANT OF REGISTRATION U/S 12A OF THE ACT, WHILE OB SERVING THAT KEEPING IN VIEW THE UNRESPONSIVE ATTITUDE OF THE AP PELLANT, IT IS SAFE TO CONCLUDE THAT THE APPLICANT HAS FAILED TO DISCHARGE ITS ONUS TO PROVE THAT ITS INCOME IS FREE FROM EXIGIBILITY OF TAXES. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO THE ORDER IMPUGNED HEREIN. THE APPELLANT MOST OF THE TIMES, DI D NOT BOTHER ITSELF TO APPEAR AND CO-ORDINATE WITH PROCEEDIN GS BEFORE LD. CIT(E) EVEN AFTER AVAILING VARIOUS OPPORTUNITIE S. ALTHOUGH THE INSTANT APPEAL OF THE APPELLANT IS LIABLE TO BE DISMISSED IN ORDER TO GIVE EFFECT TO THE PRINCIPLE THAT LAW DOES N OT ASSIST THE PERSON WHO IS INACTIVE AND SLEEPS OVER HIS RIGHTS BY ALLO WING THEM WHEN CHALLENGED OR DISPUTED TO REMAIN DORMANT, W ITHOUT ASSERTING THEM IN A COURT OF LAW. THE, PRINCIPLE WHICH F ORMS THE BASIS OF THIS RULE IS EXPRESSED IN THE MAXIM VIGILANTIBUS, NON DORMIENTIBUS, JURA SUBVENIUNT (LAW ASSISTS THOSE WHO ARE VIGILANT AND NOT THOSE WHO SLEEP OVER THEIR RIGHTS), B UT EVEN A VIGILANT LITIGANT IS PRONE TO COMMIT MISTAKES. AS THE APHORISM TO ERR IS HUMAN AND IS MORE A PRACTICAL NOTION OF HUMAN BE HAVIOR THAN AN ABSTRACT PHILOSOPHY, THE UNINTENTIONAL LAPSE ON THE PART OF A LITIGANT SHOULD NOT NORMALLY CAUSE THE DOORS OF T HE JUDICATURE PERMANENTLY CLOSED BEFORE HIM. THE EFFORT O F THE COURT SHOULD NOT BE ONE OF FINDING MEANS TO PULL DOWN THE SH UTTERS OF ITA NO. 171/ASR/2020 DEMOCRATIC COUNCIL V. CIT(E) 3 ADJUDICATORY JURISDICTION BEFORE A PARTY WHO SEEKS JUSTIC E, ON ACCOUNT OF ANY MISTAKE COMMITTED BY HIM, BUT TO SEE WHET HER IT IS POSSIBLE TO ENTERTAIN HIS GRIEVANCE IF IT IS GENUINE, THEREFORE, CONSIDERING THE FACTS THAT THE LD. CIT(E) DID NOT PASS THE ORDER UNDER CHALLENGE ON MERIT , WE FEEL IT APPROPRIATE AND PROPER TO REMAND BACK THE INSTANT CASE TO THE FILE OF THE LD. CIT(E) FOR DECISION AFRESH ON MERITS, WHILE AFFORDING P ROPER AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELLA NT, IN ORDER TO FOLLOW THE PRINCIPLE OF NATURAL JUSTICE. WE ALSO FEEL IT APPROPRIATE TO DIRECT THE APPELLANT TO EXTEND ITS FULL CO-OPERATION AND PARTICIPATION IN THE PROCEEDINGS BEFORE THE LD. CIT(E) AS AND WHEN WOULD BE REQUIRED AND IN CASE OF FURTHER DEFAULT, THE ASSESSEE SHALL NOT BE SUBJECTED TO ANY LENIENCY. 4. IN THE RESULT, THE APPEAL FILED BY THE APPELLANT IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.1 1.2020. SD/- SD/- ( N. K. SAINI ) (N.K.CHOUDHRY) VICE PRESIDENT JUDICIAL MEMBER GP/SR.PS. COPY OF THE ORDER FORWARDED TO: (1) APPELLANT (2) THE RESPONDENT (3) THE CIT (E) (4) THE CIT CONCERNED (5) THE SR DR, I.T.A.T., AMRITSAR TRUE COPY BY ORDER