Jat Kalyan Sabha, Gurugram V. CIT (Exemptions), Chandigarh

ITA 359/DEL/2023

AI Insights

The case involves Jat Kalyan Sabha, an appellant, challenging the decisions of the Commissioner of Income Tax (Exemption), Chandigarh, which had rejected their applications for registration under section 12A and approval under section 80G of the Income-tax Act, 1961. The primary contention of the appellant was the lack of a reasonable opportunity to be heard before the rejection of their applications. The Tribunal found that the CIT (Exemption) had indeed violated the rules of natural justice by not providing any notice of hearing prior to the rejection of the applications. Consequently, the Tribunal set aside the CIT's orders and remanded the case for a fresh decision after a proper hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300512 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-05-2023
• Assessment Year: misc
• Appeal Filed On: 14-02-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DINESH DESWAL
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE PRESIDENT AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA Nos.359 & 728/Del/2023 Assessment Year: Nil Jat Kalyan Sabha, C/o- Daksh & Associates, SCO-61, 3 rd Floor, Old Judicial Complex, Civil Line, Sector-15, Gurugram Vs. CIT (Exemption), Chandigarh PAN :AAABJ0629G (Appellant) (Respondent) ORDER PER SAKTIJIT DEY, JM: Captioned appeals have been filed by the assessee challenging two separate orders passed by the Commissioner of Income Tax (Exemption), Chandigarh, rejecting applications filed by the assessee seeking registration under section 12A and approval under section 80G of the Income-tax Act, 1961 (in short ‘the Act’). Appellant by Sh. Dinesh Deswal, CA Sh. Suraj Bhan Nain, Advocate Respondent by Mr. Mrinal Kumar Dass, Sr. DR Date of hearing 19.05.2023 Date of pronouncement 19.05.2023 ITA No.359 &728/Del/2023 2 | P a g e 2. We have heard Sh. Dinesh Deswal, learned Authorized Representative of the assessee and Sh. Mrinal Kumar Dass, learned Departmental Representative. 3. The limited grievance of the assessee is, learned CIT (Exemption) has passed the order rejecting assessee’s applications seeking registration under section 12A and approval under section 80G of the Act without affording any reasonable opportunity of being heard to the assessee. It is the say of learned Authorized Representative of the assessee, not even a single notice of hearing was communicated to the assessee before rejection of the applications. 4. Learned Departmental Representative was not in a position to controvert the aforesaid factual submission made by the assessee. 4. Having considered rival submissions and perused the impugned orders of learned CIT (Exemption), we are of the view that before rejection of assessee’s applications, proper opportunity of being heard has not been extended to the assessee. Since, the impugned order suffers from violation of Rules of Natural Justice, we are inclined to set aside the orders and restore the issues back to his file for de novo adjudication after providing due and ITA No.359 &728/Del/2023 3 | P a g e reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purposes. 5. In the result, appeals are allowed for statistical purposes. Order pronounced in the open court on 19 th May, 2023 Sd/- Sd/- (G.S. PANNU) (SAKTIJIT DEY) PRESIDENT JUDICIAL MEMBER Dated: 19 th May, 2023. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi