M/s R.K. Educational & Social Welfare Society, Mandi V. CIT (Exemptions), Chandigarh

ITA 743/CHANDI/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8397 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 17-02-2016
• Assessment Year: 2014-2015
• Appeal Filed On: 18-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R R THAKUR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12AA; 12; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI H.L.KARWA, VICE PRESIDENT AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA NO.743/CHD/2015 (UNDER SECTION 12AA OF THE ACT) M/S R.K. EDUCATIONAL & SOCIAL VS. THE C.I.T.(EXEMPTION) WELFARE SOCIETY, V. & P.O. NABAHI, CHANDIGARH. TEH. SARKAGHAT, DISTT. MANDI (H.P.) PAN: AABAR9988C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.R. THAKUR RESPONDENT BY : SHRI MANOJ MISHRA, DR DATE OF HEARING : 17.02.2016 DATE OF PRONOUNCEMENT : 08.03.2016 O R D E R PER RANO JAIN, A.M . : THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH DATED 23.7.2015, PASSED UN DER SECTION 12AA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION IN FORM NO.10A BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AS ON30.1.2015. AS PER THE COMMISSIONER OF INCOME TA X 2 (EXEMPTIONS), DURING THE COURSE OF HEARING THE ASSE SSEE WAS ASKED TO FURNISH LEDGER ACCOUNT AND DETAILS OF UNSECURED LOANS VIDE ORDER SHEET ENTRY DATED 23.4.2 014, IN THE ABSENCE OF WHICH THE GENUINENESS OF AIMS AND OBJECTS OF THE ASSESSEE CANNOT BE ASCERTAINED. IN VIEW OF THIS, THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) D ENIED REGISTRATION UNDER SECTION 12AA OF THE ACT TO THE A SSESSEE. 3. AGGRIEVED BY THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), THE ASSESSEE HAS COME UP I N APPEAL BEFORE US, RAISING THE FOLLOWING GROUNDS OF APPEAL : 1- THAT-THE LD. COMMISSIONER OF INCOME TAX (EXEMPTI ON) CHANDIGARH HAS ERRED IN PASSING ORDER DATED 23-7-20 15 U/S 12 AA ON THE APPLICATION OF THE APPELLANT. 2- THAT THE ORDER U/S 12 AA BY THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) IS WITHOUT AFFORDING A REASO NABLE OPPORTUNITY TO THE APPELLANT IS LIABLE TO BE SET AS IDE IN THE EYES OF LOW. 3- THAT THE ORDER PASSED BY THE LD. COMMISSIONER OF IN COME TAX(EXEMPTION)MAYBE SET ASIDE TO HIS FILE FOR AFFOR DING A REASONABLE OPPORTUNITY TO DECIDE AFRESH THE APPLICATI ON OF THE APPELLANT. 4- ANY OTHER GROUND WHICH MAY BE TAKEN BEFORE THE HEARING OF THE APPEAL WITH THE PERMISSION OF THE HONOURABLE INCOME TAX APPELLANT TRIBUNAL. 4. THE LEARNED COUNSEL FOR THE ASSESSEE PRAYED BEFORE US THAT SINCE NO PROPER OPPORTUNITY OF BEING HEARD WAS GIVEN TO THE ASSESSEE, THE CASE MAY BE SENT BAC K TO 3 THE FILE OF THE COMMISSIONER OF INCOME TAX (EXEMPTI ONS) TO DECIDE THE ISSUE ON MERITS. 6. THE LEARNED D.R. DID NOT HAVE ANY OBJECTION TO THE SAID DEPOSITION. 7. ON PERUSAL OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH, WE OBSERVE THA T IN THE FIRST INSTANCE, THE CASE WAS FIXED FOR 30.3.201 5 ON WHICH THE LEARNED COUNSEL FOR THE ASSESSEE ATTENDED THE PROCEEDINGS. THEREAFTER ON 23.4.2015 ALSO, THE LEA RNED COUNSEL FOR THE ASSESSEE APPEARED BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS). THERE IS A MENTION OF AN ORDER SHEET ENTRY DATED 23.4.2014 IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS ), WHEREBY CERTAIN DETAILS WERE ASKED FOR FROM THE ASS ESSEE. HOWEVER, THERE IS NO MENTION OF FURTHER DATE OF APP EARING OR THE FAILURE OF THE ASSESSEE TO ATTEND BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) ON ANY SUCH FURTHER DATE. SINCE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) HIMSELF HAS STATED IN HIS ORDER THAT A S ON 23.4.2014, THE LEARNED COUNSEL FOR THE ASSESSEE HAD ATTENDED THE PROCEEDINGS. IN VIEW OF THIS, WE FIND THAT THE ORDER HAS BEEN PASSED IN CLEAR VIOLATION OF THE PRI NCIPLE OF NATURAL JUSTICE WITHOUT GIVING THE ASSESSEE A PROPE R OPPORTUNITY OF BEING HEARD AND TO FILE RELEVANT DOC UMENTS AND EVIDENCES. IN THIS VIEW, WE FIND IT PROPER TO SEND THE MATTER BACK TO THE FILE OF THE COMMISSIONER OF INCO ME TAX 4 (EXEMPTIONS) TO DECIDE THE ISSUE ON MERITS AFTER GI VING NECESSARY PROPER OPPORTUNITY OF BEING HEARD. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF MARCH, 2016. SD/- SD/- (H.L.KARWA) (RANO JAIN) VICE PRESIDENT ACCOUNTANT MEMBER DATED : 8 TH MARCH, 2016 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH