Rishi Education Society, New Delhi V. CIT (Exemptions), New Delhi

ITA 6069/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5207 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 29-05-2017
• Assessment Year: misc
• Appeal Filed On: 28-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARAMITA TRIPATHY
• Assessee Lawyers: Y K SHARMA F
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. BHAVNESH SAINI , JM ITA NO. 6069/DEL/2016 : ASSTT. YEAR : 2015 - 16 RISHI EDUCATION SOCIETY, GOODWILL PUBLIC SCH OOL, SURAKHPUR MORE, GOPAL NAGAR, NAJAFGARH, NEW DELHI VS COMMISSIONER OF INCOME TAX (EXEMPTION) , NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A A ATR7931B ASSESSEE BY : SH. Y. K. SHARMA , F CA REVENUE BY : SMT. PARAMITA TRIPATHY , CI T DR DATE OF HEARING : 10 .08 .201 7 DATE OF PRONOUNCEMENT : 14 . 08 .201 7 ORDER PER N. K. SAINI, AM : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 30.09.2016 OF LD. CIT( EXEMPTIONS ) , NEW DELHI. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1.THAT THE ORDER OF L D. CIT(E) IS ILLEGAL AND BAD AT LAW. 2. T HAT THE L D. CIT(E) HAS NOT GIVEN ANY OPPORTUNITY OF HEARING TO THE ASSESSE E BEFORE MAKING REJECTION ORDER WHICH IS ILLEGAL AND BAD AT LAW. 3. THAT THE LD. CIT(E) DID N OT FIND ANY THING WHICH IS CONTRARY TO THE MAIN OBJECTS OF THE SOCIETY OR WHICH DENOTES THAT THE ACTIVITIES OF THE SOCIETY IS FOR PROFIT, ITA NO. 6069 /DEL /201 6 RISHI EDUCATION SOCIETY 2 BUT THE LD. CIT(E) HAS REJECTED THE APPLICATION ON PURELY ON ASSUMPTION BASIS AT HIS OWN WITHOUT GIVING ANY OPPORT UNITY OF HEARING TO THE ASSESSEE , WHICH IS ILLEGAL AND BAD AT LAW. 4. THAT THE LD. CIT(E) HAS QUOTED THE REASON THAT MAJOR REVENUE IS FROM FEES FROM STUDENTS WHICH HAS NO BASE FOR REJECTION AS IN CASE OF EDUCATIONAL INSTITUTE THE MAJOR REVENUE FROM FEES IS NAT URAL AND IT IS NOT AGAINST THE LAW, WHICH IS ILLEGAL AND BAD AT LAW. 5. THAT THE APPELLANT RESERVES THE RIGHT TO ADD, AMEND OR DELETE ANY OF THE GROUNDS. 3. MAIN GRIEVANCE OF THE ASSESSEE VIDE GROUND NO. 2 RELATES TO THE OPPORTUNITY OF HEARING NOT PROV IDED BY THE LD. CIT(E). 4 . DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO OPPORTUNITY OF BEING HEARD WAS PROVIDE D WHILE DECIDING THE APPLICATION FILED BY THE ASSESSEE FOR EXEMPTION U/S10(23C)(VI) OF THE INCOME TAX ACT, 19 61. HE, THEREFOR E, SUBMITTED THAT THE LD. CIT(E) WAS NOT JUSTIFIED IN REJECTING THE APPLICATION WITHOUT PROVIDING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . IN HER RIVAL SUBMISSIONS THE LD. CIT DR SUPPORTED THE IMPUGNED ORDER OF THE LD. C IT(E). ITA NO. 6069 /DEL /201 6 RISHI EDUCATION SOCIETY 3 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE LD. CIT(E) NOWHERE MENTIONED IN THE ORDER DATED 30.09.2016 THAT ANY OPPORTUNITY OF BEING HEARD WA S PROVIDED TO THE ASSESSEE. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTER A M PARTEM . WE, THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE, DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF THE LD. CIT(E) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ( ORDER PRON OUNCED IN THE COURT O N 14 /0 8 /2017 ) SD/ - SD/ - ( BHA V NESH SAINI ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DAT ED: 14 /08 /2017 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR : ITAT ASSISTANT REGISTRAR