Shri Ram Sewa Trust, New Delhi V. DIT (E), New Delhi

ITA 51/DEL/2010

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5572 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 05-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURABHI AHULWALIA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G

Judgement Text

I.T.A. NO.51/DEL/10 1/3 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G NEW DELHI) BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO.51 /DEL/2010 ASSESSMENT YEAR : 2009-10 SHRI RAM SEWA TRUST, DIRECTOR OF INCOME-TAX 21, POCKET-E, (EXEMPTION), MAYUR VIHAR, PHASE-II, NEW DELHI. NEW DELHI. V. (APPELLANT) (RESPONDENT) PAN /GIR/NO.AABTS-5080-K APPELLANT BY : SHRI RAJEEV SAXENA. RESPONDENT BY : MS. SURABHI AHULWALIA, SR. DR. ORDER PER A.K. GARODIA, AM: THIS IS AN ASSESSEE'S APPEAL DIRECTED AGAINST THE O RDER OF LD DIT(EXEMPTION), DELHI DATED 4.11.2009 PASSED BY HIM UNDER SECTION 80G5(VI) OF THE INCOME TAX ACT, 1961. 2. GROUND NO.1, 2 & 3 ARE INTER-CONNECTED WHICH REA D AS UNDER:- .1. LD DIT(E) HAS ERRED IN LAW AS WELL AS ON FACTS IN PASSING THE ORDER EX PARTE AS NOTICE OF HEARING WAS NEITHER SERVED NOR R ECEIVED BY THE ASSESSEE FOR DATE OF HEARING FIXED BY HIM. . I.T.A. NO.51/DEL/10 2/3 2. THE LD DIT(E) HAS ALSO ERRED IN NOT DEPUTING ANY INSPECTOR WHEN NOTICE WAS NOT SERVED TO PROVIDE HEARING AS PER PRINCIPLE OF NATURAL LAW AND JUSTICE AS THIS WOULD HAVE CONFIRMED HIM THAT MANAG ING TRUSTEE SHRI SC SAXENA WAS EXPIRED DUE TO WHICH PERHAPS NOTICE COUL D NOT BE SERVED BY HIM FOR HEARING. 3. THE LD DIT (E) HAS ERRED IN LAW AS WELL AS ON FA CTS IN NOT ALLOWING THE EXEMPTION AS THE TRUST IS VERY OLD REGULARLY FILING IT RETURNS AND AVAILED ALREADY EXEMPTION TILL 31.3.2009 AND WAS SEEKING ON LY RENEWAL OF THE EXEMPTION UNDER SECTION 80G OF THE INCOME TAX ACT, 1961. 3. IT WAS SUBMITTED BY LD AR OF THE ASSESSEE THAT N O OPPORTUNITY WAS PROVIDED BY LD DIT(E) BEFORE PASSING THE IMPUGNED O RDER. IT IS ALSO SUBMITTED THAT THE SAID NOTICES DATED 15.9.2009 AND 6.10.2009 WERE NEVER SERVED ON THE ASSESSEE AND HENCE THE ORDER PASSED BY DIT (E) IS I N VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. 4. LD DR OF THE REVENUE SUBMITTED THAT TWO LETTERS WERE SENT BY LD DIT(E) TO THE ASSESSEE AND HENCE OPPORTUNITY WAS PROVIDED. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE GON E THROUGH THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT IT IS THE CLAIM O F THE ASSESSEE THAT NOTICES OF HEARING WAS NEITHER SERVED NOR RECEIVED BY THE ASSE SSEE. WE ALSO FIND THAT IN THE IMPUGNED ORDER PASSED BY LD DIT (E), THERE IS M ENTION OF ISSUING TWO LETTERS TO THE ASSESSEE DATED 15.9.2009 AND 6.10.2009 BUT T HERE IS NO MENTION REGARDING THIS ASPECT AS TO WHETHER THESE TWO LETTE RS WERE SERVED ON THE ASSESSEE OR NOT. UNDER THESE FACTS AND IN THE INTE REST OF NATURAL JUSTICE, WE FEEL IT FIT AND PROPER THAT THIS MATTER SHOULD GO BACK T O THE FILE OF THE LD DIT (E) FOR A FRESH DECISION AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE, THEREFORE, SET ASIDE THE ORDER OF LD DIT (E) AND RESTORE THE MATTER . I.T.A. NO.51/DEL/10 3/3 BACK TO HIS FILE FOR A FRESH DECISION AFTER PROVIDI NG ADEQUATE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 6. THE REMAINING GROUND I.E. GROUND NO.3 IS REGARDI NG MERIT AND SINCE WE ARE RESTORING THE MATTER BACK TO THE FILE OF LD DIT (E) FOR A FRESH DECISION, NO ADJUDICATION IS CALLED FOR ON GROUND NO.3 AT THIS S TAGE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. 8. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE O F HEARING I.E. 4 TH MARCH, 2010. SD/- SD/- (GEORGE MATHAN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 04.3.2010. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY. BY ORDER (ITAT, NEW DELHI).