Shree Badri Vishal Sewa Sadan, Barnala V. CIT (Exemptions), Chandigarh

ITA 745/CHANDI/2015

• Counselvise Citation: 74521514 RSA 2015
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 20-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA KANTA
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause
• Section: 12A; 12AA; 12

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.745/CHD/2015 (UNDER SECTION 12AA OF THE ACT) SHREE BADRI VISHAL SEWA SADAN, VS. THE C.I.T.(EXEMPTIONS) BAND GALI, BARNALA. CHANDIGARH. CHANDIGARH. PAN: (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : MS.CHANDRA KANTA, DR DATE OF HEARING : 29.10.2015 DATE OF PRONOUNCEMENT : 02.12.2015 O R D E R PER RANO JAIN, A.M . : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH DATED 28.7.2015, PASSE D UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT AN APPLICATION UNDER SECTION 12A OF THE ACT WAS FILED BY THE ASSESSEE BEING A TRUST ON 21.1.2015. THE CASE WAS FIXED BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) AS ON 2.7.2015. THE ASSESSEE REQUESTED FOR ADJOURNMENT A ND 2 THE CASE WAS FIXED ON 27.7.2015 BY A NOTICE DATED 21.7.2015. SINCE NOBODY ATTENDED ON THE SAID DATE AND TIME, THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) BEING LEFT WITH NO OPTION BUT TO PROCE ED IN THE MATTER ON THE BASIS OF INFORMATION AVAILABLE WI TH THE APPLICATION, ADJUDICATED THE CASE AND FINDING HIMSE LF UNABLE TO BE SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE TRUST DENIED THE REGISTR ATION UNDER SECTION 12AA OF THE ACT. 3. AGGRIEVED BY THIS ORDER, THE ASSESSEE HAS COME UP IN APPEAL BEFORE US, RAISING THE FOLLOWING GROUN DS : 1. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERR ED IN LAW IN DECIDING THE APPEAL EX-PARTE WITHOUT AFFORDI NG A PROPER OPPORTUNITY OF HEARING WHICH IS AGAINST THE B ASIC TENETS OF PRINCIPALS OF NATURAL JUSTICE AND AS SUCH THE ORDER PASSED IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 2. THAT NOTICE INTIMATING THE DATE OF HEARING WAS RECEIVED BY THE ASSESSEE AFTER THE DATE OF HEARING SO FIXED AND AS SUCH THE ORDER PASSED IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 3. WITHOUT PREJUDICE TO THE ABOVE, THE LD. COMMISSIONER OF INCOME TAX HAS ERRED IN LAW AS WELL AS ON FACTS IN REJECTING REGISTRATION UNDER SECTION 12 AA OF THE ACT WHICH IS ARBITRARY & UNJUSTIFIED. 4. THAT THE REGISTRATION HAS BEEN REFUSED ONLY ON THE BA SIS OF SUSPICION, CONJECTURES AND SURMISES WHICH IS NOT PERMI TTED UNDER THE LAW AND AS SUCH THE ORDER REFUSING REGIST RATION IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 5. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF T HE CASE 3 AND IS, THUS, UNTENABLE. 4. THE LEARNED COUNSEL FOR THE ASSESSEE WHILE ARGUING SUBMITTED THAT THE APPLICATION FOR REGISTRA TION UNDER SECTION 12AA OF THE ACT HAS BEEN REJECTED BY THE LEARNED COMMISSIONER OF INCOME TAX WITHOUT GIVING THE ASSESSEE AN OPPORTUNITY OF BEING HEARD. HIS CONTE NTION WAS THAT THE CASE, WHICH WAS FIXED FOR 27.7.2015 VI DE LETTER DATED 21.7.2015, THE SAID LETTER REACHED THE ASSESSEE ON 28.7.2015 ON WHICH DATE THE LEARNED COMMISSIONER OF INCOME TAX PASSED THE ORDER. IN T HIS WAY, A PRAYER WAS MADE THAT SINCE THE ASSESSEE DID NOT RECEIVE THE NOTICE IN TIME AND, THEREFORE, THE ABSE NCE WAS DUE TO REASONABLE CAUSE, THE ASSESSEE MAY BE GIVEN ANOTHER OPPORTUNITY TO PRESENT ITS CASE BEFORE THE LEARNED COMMISSIONER OF INCOME TAX. A COPY OF CERTIFICATE OF THE SUB POST MASTER, BARNALA WAS FILED BEFORE US TO THE EFFECT THAT THE LETTER DATED 21.7.2015, AS STATED IN THE O RDER OF THE LEARNED COMMISSIONER OF INCOME TAX, WAS IN FACT RECEIVED IN THE POST OFFICE, BARNALA AS ON 28.7.201 7 AND WAS DELIVERED TO THE ASSESSEE ON 28.7.2015. 5. THE LEARNED D.R. RELIED UPON THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX AND SUBMITTED T HAT SINCE THE ASSESSEE CHOSE NOT TO AVAIL OPPORTUNITY O F BEING HEARD, THE LEARNED COMMISSIONER OF INCOME TAX WAS RESTRAINED TO EXAMINE THE GENUINENESS OF THE ACTIVI TIES OF THE ASSESSEE. IN SUCH A SCENARIO, THE REJECTION MA DE BY THE LEARNED COMMISSIONER OF INCOME TAX IS JUSTIFI ED. 4 6. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOTH THE PARTIES, PERUSED THE FINDINGS OF THE AUTHO RITIES BELOW AND CONSIDERED THE MATERIAL AVAILABLE ON RECO RD. FROM THE COPY OF THE CERTIFICATE ISSUED BY THE SUB POST MASTER, BARNALA FILED BEFORE US, WE OBSERVE THAT TH E LETTER ISSUED BY THE LEARNED COMMISSIONER OF INCOME TAX F IXING THE CASE FOR 27.7.2015 WAS IN FACT SERVED TO THE AS SESSEE ON 28.7.2015, ON WHICH DATE THE LEARNED COMMISSIONE R OF INCOME TAX PASSED THE FINAL ORDER REJECTING THE APPLICATION OF THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. IN THIS BACKGROUND, THE ASSESSEE WAS DEPRIVED FROM AN OPPORTUNITY OF BEING HEARD IN VIOL ATION OF THE PRINCIPLES OF NATURAL JUSTICE. THEREFORE, IN O RDER TO MEET THE END OF JUSTICE, IT IS PERTINENT TO SEND TH E MATTER BACK TO THE FILE OF THE LEARNED COMMISSIONER OF INC OME TAX (EXEMPTIONS) TO ADJUDICATE THE MATTER AS PER LAW. NO NEED TO ADD THAT THE ASSESSEE IS TO BE GIVEN ADEQUATE AN D PROPER OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 ND DAY OF DECEMBER, 2015. SD/- SD/- (H.L.KARWA) (RANO JAIN) VICE PRESIDENT ACCOUNTANT MEMBER DATED : 2 ND DECEMBER, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 5