Shiv Kumar Garg Memorial & Charitable Trust, Sirsa V. Commssioner of Income Tax (Exemptions), Chandigarh

ITA 427/CHANDI/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9076 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 28-09-2016
• Assessment Year: misc
• Appeal Filed On: 25-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI SARANGA L
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO.427/CHD/2016 ( ORDER UNDER SECTION 12AA ) SHIV KUMAR GARG MEMORIAL VS THE CIT(EXEMPTIONS) & CHARITABLE TRUST, C.R. BUILDING, C/O AGGARWAL & GENERAL MILLS, 5 TH FLOOR, SECTOR 17-E 1ST INDUSTRIAL AREA, CHANDIGARH. DABWALI RANIA LINK ROAD, SIRSA. PAN: AAPTS4138J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.R.SHARMA RESPONDENT BY : SHRI RAVI SARANGAL DATE OF HEARING : 28.09.2016 DATE OF PRONOUNCEMENT : 03.10.2016 O R D E R PER BHAVNESH SAINI, JM THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(EXEMPTIONS) CHANDIGARH DATED 27.03.2016 REJECTING THE APPLICATION FOR REGISTRATI ON UNDER SECTION 12AA OF THE INCOME TAX ACT. 2. THE CIT (EXEMPTION) NOTED IN THE IMPUGNED ORDER THAT ASSESSEE FILED APPLICATION IN PRESCRIBED FORM DATED 01.09.2015 WHICH WAS RECEIVED IN HIS OFFICE ON 14.09.2015 FOR GRANT OF REGISTRATION. THE CIT 2 (EXEMPTIONS) AFFORDED THE OPPORTUNITY TO THE ASSESS EE BY ISSUING A QUERY LETTER ON 17.03.2016 AND SINCE ASSE SSEE DID NOT RESPOND ON THE DATE OF HEARING, THEREFORE, APPLICATION FOR REGISTRATION WAS REJECTED. 3. AFTER CONSIDERING RIVAL SUBMISSIONS, WE ARE OF T HE VIEW MATTER REQUIRES RE-CONSIDERATION AT THE LEVEL OF THE CIT (EXEMPTIONS) CHANDIGARH. THE LD. COUNSEL FOR T HE ASSESSEE REFERRED TO PB-13 WHICH IS A LETTER OF QUERY/SHOW CAUSE ISSUED BY CIT (EXEMPTIONS) ON 11.03.2016 FOR 17.03.2016 FOR HEARING BEFORE HIM AT 11.30 AM. THE LD. COUNSEL FOR THE ASSESSEE ALSO RE FERRED TO HIS REPLY DATED 18.03.2016 (PB-14) IN WHICH IT W AS STATED THAT THE SHOW CAUSE NOTICE DATED 11.03.2016 HAVE BEEN RECEIVED ON 17,93,2916 ONLY. THE LD. COUN SEL FOR THE ASSESSEE SUBMITTED THAT THIS REPLY WAS SENT BY SPEED POST WHICH HAVE BEEN RECEIVED IN THE OFFICE O F CIT (EXEMPTIONS) ON 21 ST MARCH. THE ASSESSEE HAS, THEREFORE, SUBMITTED THAT NO PROPER TIME HAS BEEN G IVEN FOR HEARING OF THE REGISTRATION MATTER AND IS A CAS E OF DENIAL OF OPPORTUNITY OF BEING HEARD TO THE ASSESSE E. 4. IN THIS VIEW OF THE MATTER, WE ARE OF THE VIEW ASSESSEE HAS NOT BEEN AFFORDED REASONABLE OPPORTUNI TY OF BEING HEARD TO THE ASSESSEE. THE CIT (EXEMPTION S) ISSUED NOTICE ON11.03.2016 FOR 17.03.2016 AND AS PE R REPLY OF THE ASSESSEE, THIS SHOW CAUSE NOTICE WAS RECEIVED ON 17.03.2016 ONLY. THE ASSESSEE IS SITUA TED AT SIRSA AND THEREFORE, IT IS DIFFICULT TO BELIEVE THAT 3 ASSESSEE WOULD RESPOND TO THE SAME NOTICE BY APPEAR ING BEFORE CIT (EXEMPTIONS) AT CHANDIGARH FROM SIRSA. THESE FACTS ARE SUFFICIENT TO HOLD THAT NO PROPER OPPORTUNITY OF BEING HEARD HAVE BEEN GRANTED TO THE ASSESSEE. THE MATTER, THEREFORE, REQUIRES RE- CONSIDERATION AT THE LEVEL OF CIT (EXEMPTIONS), CHANDIGARH. 5. WE, THEREFORE, SET ASIDE THE ORDERS OF CIT (EXEMPTIONS) CHANDIGARH AND RESTORE THE MATTER IN ISSUE TO HIS FILE WITH DIRECTION TO RE-DECIDE THE REGISTRATION MATTER UNDER SECTION 12AA OF THE ACT B Y GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SA INI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3 RD OCTOBER, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD