Bibi Bhaniji Bhalai Kendar Charitable , Ludhiana V. CIT(Exemption), Chandigarh

ITA 238/CHANDI/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5974 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 09-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C CHANDRAKANTA CIT DR
• Assessee Lawyers: INDERJIT PAUL
• 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 A, CHANDIGARH (VIRTUAL COURT) .., !' .. , # $% BEFORE: SHRI. N.K.SAINI, VP & SHRI R.L. NEGI, JM ITA NO. 238/CHD/2020 ASSESSMENT YEAR : BIBI BHANIJI BHALAI KENDAR CHARITABLE TRUST (REGD.), 42-L, MODEL TOWN, B/S KRISHNA (C) HOSPITAL, LUDHIANA (PUNJAB) THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH. PAN NO: AACTB96967E APPELLANT RESPONDENT !' ASSESSEE BY : SHRI INDERJIT PAUL, ADVOCATE #!' REVENUE BY : SMT. C. CHANDRAKANTA, CIT (DR) $ %! & DATE OF HEARING : 26/04/2021 '()*! & DATE OF PRONOUNCEMENT : 26/04/2021 $&/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 30/04/2019 OF LD. CIT(E), CHANDIGARH. IN THIS APPEAL, THE ASSESSE E, ALTHOUGH, HAS RAISED SEVEN GROUNDS OF APPEAL, HOWEVER, THE MAIN GRIEVANCE OF T HE ASSESSEE RELATES TO REJECTION OF APPLICATION FOR APPROVAL U/S 80G(5)(VI ) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS, THE ACT). 2. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSE SSEE E-FILED AN APPLICATION IN FORM NO. 10G ON 18/10/2018 FOR APPROVAL U/S 80G OF THE ACT BEFORE THE LD. CIT(E) WHO ASKED THE EXPLANATION OF THE ASSESSEE ON THE QU ERIES WHICH ARE MENTIONED IN PARA 2 OF THE IMPUGNED ORDER, FOR THE COST OF RE PETITION, THESE ARE NOT REPRODUCED HEREIN. THE LD. CIT(E) MENTIONED THAT TH E ASSESSEE FURNISHED REPLY WHICH WAS RECEIVED THROUGH DAK IN HIS OFFICE ON 19/ 03/2019. THEREAFTER, HE 2 ITA 238/CHD/2020 BIBI BHANIJI BHALAI KENDAR CHARITABLE TRUST VS CIT( E) RAISED ANOTHER QUERIES MENTIONED IN PARA 3 OF THE I MPUGNED ORDER AND FIXED THE DATE FOR FURNISHING THE DETAILS BY 16/04/2019. HOWE VER, THE LD. CIT(E) REJECTED THE APPLICATION OF THE ASSESSEE BY OBSERVING IN PARA 4 OF THE IMPUGNED ORDER AS UNDER: 4. ON 15.04.2019, THE APPLICANT TRUST REPLIED VIDE EMAIL AND REQUESTED FOR ADJOURNMENT OF 8-10 DAYS. TILL THE PASSING OF T HE ORDER THE APPLICANT TRUST DID NOT SUBMITTED THE REPLY TO THE ABOVE MENTIONED QUERIES. IN VIEW OF THE ABSENCE OF ANY REPLY IN RES PONSE TO THE ABOVE QUERIES RAISED BY THIS OFFICE, THE QUERIES RA ISED IN THIS MATTER REMAINED UNEXPLAINED. ALL OF THE ABOVE, INCLUDING T HE UNRESPONSIVE ATTITUDE OF THE APPLICANT, CLEARLY LEADS ONE TO CON CLUDE THAT THE ENTITY DOES NOT SEEM INTERESTED TO PURSUE ITS APPLI CATION. IT IS ENTIRELY POSSIBLE THAT IT HAS NO ANSWER TO THE QUERIES RAISE D. IN THE LIGHT OF THE ABOVE, I HAVE NO OPTION BUT TO DENY THE APPROVAL TO THE APPLICANT U/S 80G OF THE INCOME TAX ACT, 1961. 3. NOW THE ASSESSEE IS IN APPEAL. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(E) WITHOUT GIVING PROPER TIME TO REPLY HIS QUERIES, PASSED THE IMPUGN ED ORDER EX PARTE AND REJECTED THE APPLICATION MOVED BY THE ASSESSEE U/S 80G OF THE ACT, IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 5. IN HER RIVAL SUBMISSIONS, THE LD CIT-DR SUPPORTE D THE IMPUGNED ORDER PASSED BY THE LD. CIT(E) AND SUBMITTED THAT SINCE T HE ASSESSEE DID NOT REPLY TO THE QUERIES RAISED BY THE LD. CIT(E), THERE WAS NO ALTERNATE EXCEPT TO REJECT THE APPLICATION MOVED B Y THE ASSESSEE FOR APPROVAL U/S 80G OF THE ACT. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE, IT APPEARS THAT A DUE AND REASONABLE OPPORTUNITY OF BEING HEARD WAS NOT PROVI DED BY THE LD. CIT(E) PARTICULARLY WHEN THE CASE WAS FIXED FOR FURNISHING THE DETAILS ON 16/04/2019AND 3 ITA 238/CHD/2020 BIBI BHANIJI BHALAI KENDAR CHARITABLE TRUST VS CIT( E) THE ASSESSEE SOUGHT TIME OF 8-10 DAYS VIDE EMAIL DA TED 15/04/2019. THE LD. CIT(E) WITHOUT COMMENTING UPON THE REQUEST OF THE A SSESSEE, REJECTED THE APPLICATION MOVED BY THE ASSESSEE FOR APPROVAL U/S 80G OF THE ACT BY PASSING THE IMPUGNED ORDER EX PARTE. IT IS WELL SETTLED THA T NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTERM PAR TEM. WE THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE, DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER BACK TO T HE FILE OF THE LD. CIT(E) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 26/04/2021) SD/- SD/- .. .., (R.L. NEGI) (N.K. SAINI ) # $%/ JUDICIAL MEMBER / VICE PRESIDENT *RANJAN DATE: 26/04/2021 (+! ,-.- 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