Ch.Maan Singh Memorial Educational & Welfare Trust, New Delhi V. CIT(Exemption), New Delhi

ITA 6973/DEL/2017

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 5399 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 21-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS RACHNA SINGH
• Assessee Lawyers: SURESH K GUPTA
• Keywords: Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER BEFORE SHRI K.N. CHARY, JUDICIAL MEMBER I.T.A. NO. 6973/DEL/2017 CH. MAAN SINGH MEMORIAL EDUCATIONAL & WELFARE TRUST, HOUSE NO. 10/63C, GROUND FLOOR, BLOCK-10, KIRTI NAGAR INDL AREA NEW DELHI VS. COMMISSIONER OF INCOME TAX (EXEMPTION), DELHI [APPELLANT] [RESPONDENT] ASSESSEE BY: SH. SURESH K. GUPTA, CA RESPONDENT BY: MRS. RACHNA SINGH, CIT DR DATE OF HEARING: 04 10 2018 DATE OF PRONOUNCEMENT: 09 10 2018 O R D E R PER N.K. SAINI, A.M: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDE R DATED 26.10.2017 OF THE CIT(E), NEW DELHI. FOLLOWING GROUNDS HAVE BE EN RAISED IN THIS APPEAL:- 1. THE LD. CIT(EXEMPTION) HAS ERRED BOTH IN LAW AND ON FACTS IN REJECTING THE APPLICATION OF THE APPELLANT TRUST U/S 12A OF THE I .T. ACT, 1961 IGNORING THE MATERIALS AND EVIDENCES SUBMITTED BY THE APPELLANT TRUST TO PROVE THE GENUINENESS OF THE ACTIVITIES OF THE TRUST AND THER E IS NO ADVERSE FUNDING BY THE LD. CIT ON THE NATURE OF THE OBJECTS OF THE TRUST W HICH ARE CHARITABLE IN NATURE. 2. THE ORDER UNDER APPEAL HAS BEEN PASSED BY THE LD. C IT WITHOUT COMMENTING ADVERSELY ON THE EVIDENCES AND DETAILS SUBMITTED BY THE APPELLANT IN REPLY TO THE SPECIFIC QUERIES RAISED IN THE COURSE OF IMPUGNED P ROCEEDINGS AND ON THE CONTRARY THE LD. CIT DOES NOT ACKNOWLEDGE IN THE OR DER THE EVIDENCES / MATERIALS PRODUCED BY THE APPELLANT TRUST IN RESPON SE TO THE NOTICES ISSUED. ITA NO. 6973/DEL/2017 2 2. THE MAIN GRIEVANCE OF THE ASSESSEE IN THIS APPEAL R ELATES TO THE ACTION OF THE LEARNED CIT(E) IN NOT CONSIDERING THE MATERIAL AND EVIDENCES FURNISHED BY THE ASSESSEE TO PROVE THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED AN APPLICATION ON 26.4.2017 IN FORM NO. 10A SEEKING REGISTRATIONS UND ER SECTION 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS TH E ACT). THE LEARNED CIT(E) DISMISSED THE APPEAL BY PASSING THE EX PARTE ORDER BY STATING THAT THE CASE WAS FIXED FOR HEARING ON 16.10.2017 BUT ON THE SAME DATE NOBODY APPEARED AND THAT ASSESSEE FILED DOCUMENTS ON 17.10 .2017 AND 24.10.2017 BUT NOBODY APPEARED. THE LEARNED CIT(E) OBSERVED TH AT THE ASSESSEE HAD NOT FILED REQUISITE DETAILS THEREFORE, THE GENUINEN ESS OF THE ACTIVITIES COULD NOT BE ESTABLISHED. HE ACCORDINGLY REJECTED THE APP LICATION FOR REGISTRATION UNDER SECTION 12A(A) OF THE ACT. 4. NOW THE ASSESSEE IS IN APPEAL. 5. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT ALL THE RELEVANT DOCUMENTS WERE FURNISHED BEFORE THE LEARNED CIT(E) WHO PASSED EX PARTE ORDER WITHOUT PROVIDING A DUE AND REASONABLE OPPORT UNITY OF BEING HEARD TO THE ASSESSEE AND WITHOUT CONSIDERING THE RELEVANT D OCUMENTS FURNISHED BY THE ASSESSEE. IN HIS RIVAL SUBMISSIONS, THE LEARNED SR. DR SUPPORTED THE IMPUGNED ORDER PASSED BY THE LEARNED CIT(E). 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESEN T CASE IT IS NOTICED THAT LEARNED CIT(E) ON THE ONE HAND ADMITTED THAT THE AS SESSEE FILED THE DOCUMENTS ON 17.10.2014 AND 24.10.2017 RELATING TO THE CASE ON THE OTHER ITA NO. 6973/DEL/2017 3 HAND HE STATED THAT THE ASESSEE HAD NOT FILED THE R EQUISITE DETAILS TO ESTABLISH THE GENUINENESS OF THE ACTIVITIES. IT IS ALSO AN ADMITTED FACT THAT LEARNED CIT(E) DISMISSED THE APPLICATION OF THE ASS ESSEE BY PASSING THE EX PARTE ORDER. 7. I, THEREFORE, BY CONSIDERING THE CONTRADICTORY S TAND TAKEN BY THE LEARNED CIT(E) AND BY KEEPING IN VIEW THE PRINCIPLES OF NAT URAL JUSTICE I.E. NOBODY SHOULD BE CONDEMNED UNHEARED AS PER THE MAXIM AUDI ALTERAM PARTEM, DEEM IT APPROPRIATE TO REMIT THIS CASE BACK TO THE FILE OF THE LEARNED CIT(E) TO BE DECIDED AFRESH IN ACCORDANCE WITH LAW AFTER P ROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 09.10.2018 .) SD/ - SD/ - [K.N. CHARY] JUDICIAL MEMBER [N.K. SAINI] ACCOUNTANT MEMBER DATED: 09.10.2018 SH ITA NO. 6973/DEL/2017 4 COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT AS SISTANT REGISTRAR DATE 1. DRAFT DICTATED ON 4 .10.2018 PS 2. DRAFT PLACED BEFORE AUTHOR 5 .10.2018 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 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 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. 11. DATE OF UPLOADING .10.2018