M/s. Khalsa Montessori Senior Secondary School, New Delhi V. Addl.CIT, Bulandshahr

ITA 4926/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6726 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 3
• Next Hearing Date: 03-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 09-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RUPESH GUPTA
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice
• Section: 12A

Judgement Text

1 ITA NO. 4926/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-3, NEW DELHI BEFORE SH. N. K. SAINI, ACCOUNTANT MEMBER ITA NO.4926/DEL/2014 : ASSTT. YEAR : 2007-08 KHALSA MONTESSORI SENIOR SECONDARY SCHOOL C/O. M/S. RRA TAX INDIA, D-28, SOUTH EXTENSION, PART-1 NEW DELHI AAAAK2826P VS ADDL. CIT(A) RANGE BULANDSHAHAR ASSESSEE BY : SH. RUPESH GUPTA, ADV & SH. SOMIL AGGARWAL, ADV REVENUE BY : SH. ANIL SHARMA, SR. DR DATE OF HEARING : 03.11.2016 DATE OF PRONOUNCEMENT : 07.11.2016 ORDER PER N. K. SAINI, AM: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 28/3/2014 PASSED BY CIT (A)-MEERUT. 2. THE MAIN GRIEVANCE OF THE ASSESSEE IN APPEAL REL ATES TO THE ACTION OF THE LD.CIT (A) IN DISMISSING THE APPEAL IN LIMINE, WITH OUT CONSIDERING THE MERITS. 3. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSE SSEE IS RUNNING AN EDUCATIONAL INSTITUTION OF 12 TH STANDARD AND HAD BEEN GRANTED REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961(HEREINAFTER REFERRED TO AS THE ACT). THE ASSESSEE FURNISHED THE RETURN OF INCOME ON 30/10/2007 DECLARING NIL INCOME BY CLAIMING THE EXEMPTION U/S 10(23C) (III AD) OF THE ACT. LATER O N, THE CASE WAS SELECTED FOR 2 ITA NO. 4926/DEL/2014 SCRUTINY. THE A.O FRAMED THE ASSESSMENT AT AN INCOM E OF RS.15,76,570/- BY OBSERVING THAT THE SAID AMOUNT WAS APPLIED SHORT F OR CHARITABLE PURPOSES. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE L D.CIT(A) WHO DISMISSED THE APPEAL EX-PARTE BY OBSERVING THAT THE ASSESSEE EITH ER HAD NOT MADE ANY COMPLIANCE TO NOTICES ISSUED U/S 250 OF THE ACT OR HAD FILED ADJOURNMENT APPLICATION. NOW, THE ASSESSEE IS IN APPEAL. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD.CIT (A) DID NOT PROVIDE DUE AND REASONABLE OPPORTUNITY OF BEING HEA RD AND DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE WITHOUT DISCUSSING THE IS SUES ON MERIT. IT WAS FURTHER SUBMITTED THAT THE LD.CIT (A) VIOLATED THE PRINCIPL ES OF NATURAL JUSTICE WHILE DECIDING THE APPEAL EX-PARTE AND DISMISSING THE SAM E IN LIMINE. 5. IN HIS RIVAL SUBMISSION, THE LD. DR SUBMITTED TH AT VARIOUS OPPORTUNITIES FOR HEARING WERE GIVEN TO THE ASSESSEE BUT THERE WAS NO COMPLIANCE BY THE ASSESSEE. THEREFORE, THE LD.CIT (A) WAS JUSTIFIED IN DISMISSIN G THE APPEAL OF THE ASSESSEE IN LIMINE. 6. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT C ASE, IT IS NOTICED THAT THE LD.CIT(A) SIMPLY STATED IN PARA 2 OF THE IMPUGNED O RDER THAT ON VARIOUS DATES NOTICES WERE ISSUED FOR HEARING BUT THERE WAS NO CO MPLIANCE BY THE ASSESSEE. HOWEVER, NO WHERE IT WAS STATED THAT THE NOTICE ISS UED WAS SERVED UPON THE ASSESSEE. IN THE INSTANT CASE, IT IS SO IT IS NOT CLEAR AS TO WHETHER THE ASSESSEE RECEIVED THE NOTICE FOR HEARING OR NOT, THEREFORE, THE EX-PARTE ORDER PASSED BY THE LD.CIT (A) DESERVES TO BE SET ASIDE. ACCORDINGLY, THE IMPUGNED ORDER IS SET ASIDE AND THE CASE IS REMANDED BACK TO THE FILE OF THE LD .CIT(A) TO BE DECIDED A FRESH ON 3 ITA NO. 4926/DEL/2014 MERIT IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AN D REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE COURT ON 07/11/2016) SD/- (N. K. SAINI) ACCOUNTANT MEMBER DATED: 07/11/2016 *R.NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI 4 ITA NO. 4926/DEL/2014 DATE INITIAL 1. DRAFT DICTATED ON 03.11.2016 PS 2. DRAFT PLACED BEFORE AUTHOR 04.11.2016 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 07.11.2016 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 07.11.2016 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 5 ITA NO. 4926/DEL/2014