M/s Nishkam Sewa Welfare & Charitable Society, Kangra V. CIT (Exemptions), Chandigarh

ITA 782/CHANDI/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8479 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 08-02-2016
• Assessment Year: misc
• Appeal Filed On: 14-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause
• Section: 12A; 12AA

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.782/CHD/2015 (UNDER SECTION 12AA OF THE ACT) M/S NISHKAM SEWA WELFARE VS. THE C.I.T.(EXEMPTIONS), & CHARITABLE SOCIETY, CHANDIGARH. VILLAGE-PAROUR, TEHSIL-PALAMPUR, KANGRA (HP). PAN: AAEAT0979N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : SHRI SUSHIL KUMAR, DR DATE OF HEARING : 08.02.2016 DATE OF PRONOUNCEMENT : 17.02.2016 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 INCOM E TAX (EXEMPTIONS), CHANDIGARH DATED 18.8.2015 PASSED UND ER SECTION 12AA OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. BRIEFLY, THE FACTS AS EMERGING FROM THE ORDER O F THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) ARE THA T THE 2 ASSESSEE FILED AN APPLICATION IN FORM NO.10A FOR REGISTRATION UNDER SECTION 12A OF THE ACT. THE CAS E WAS FIXED FOR HEARING ON 29.7.2015, ON WHICH DATE NOBOD Y APPEARED BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), ANOTHER NOTICE DATED 30.7.2015 WAS IS SUED FIXING THE CASE FOR 11.8.2015 IN RESPONSE TO WHICH ALSO, NOBODY APPEARED BEFORE THE COMMISSIONER OF INCOME T AX (EXEMPTIONS). SINCE THE ASSESSEE HAD FAILED TO FUR NISH THE PROOF OF REGISTRATION, THE BOOKS OF ACCOUNT, VOUCHE RS AND COPY OF BANK ACCOUNTS, ETC., IN THE ABSENCE OF WHIC H THE GENUINENESS OF ACTIVITIES COULD NOT BE EXAMINED. H ENCE, THE APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT WAS REJECTED. 3. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE , WHILE MAKING REFERENCE TO VARIOUS PAGES OF THE PAPE R BOOK SUBMITTED THAT THE NOTICE DATED 11.8.2015 ISSUED BY THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) FIXING THE CASE FOR 13.8.2015 WAS RECEIVED BY THE POSTAL AUTHORITIE S ON 13.8.2015 AND WAS DELIVERED TO THE ASSESSEE AS ON 14.8.2015. A PHOTOCOPY OF POSTAL STAMP WAS SHOWN T O US. IT WAS FURTHER STATED THAT A LETTER IN REPLY TO NOT ICE DATED 11.8.2015 WAS SENT TO THE COMMISSIONER OF INCOME TA X (EXEMPTIONS) TOGETHER WITH ALL THE DETAILS AND DOCUMENTARY EVIDENCES. HOWEVER, THE ORDER WAS PASS ED BY THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) AS O N 18.8.2015. A PRAYER IN SUCH CIRCUMSTANCES WAS MA DE TO 3 SEND THE MATTER BACK TO THE FILE OF THE COMMISSIONE R OF INCOME TAX (EXEMPTIONS) TO GIVE AN OPPORTUNITY TO T HE ASSESSEE OF BEING HEARD. 4. THE LEARNED D.R. DID NOT HAVE ANY OBJECTION TO SENDING THE MATTER BACK TO THE COMMISSIONER OF INCO ME TAX (EXEMPTIONS). 5. 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. SINCE IT IS ON RECORD THAT THE NOTICE FOR HEARING W AS RECEIVED BY THE ASSESSEE AFTER THE DATE OF HEARING AND ON RECEIVING THE SAID NOTICE, THE ASSESSEE HAD SENT A REPLY TO THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), THERE WAS A REASONABLE CAUSE FOR THE ASSESSEE NOT APPEARING BEF ORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS). DOCTR INE OF NATURAL JUSTICE IS A CARDINAL PRINCIPLE OF LAW, WHEREBY THE ASSESSEE SHOULD BE GIVEN A PROPER AND ADEQUATE OPPORTUNITY OF BEING HEARD. IN THE INTEREST OF JUS TICE, WE ARE INCLINED TO SEND THIS MATTER BACK TO THE FILE O F COMMISSIONER OF INCOME TAX (EXEMPTIONS) TO ADJUDICA TE IT ON MERITS AFTER GIVING THE ASSESSEE A PROPER AND AD EQUATE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO D IRECTED TO COOPERATE WITH THE DEPARTMENT FOR DISPOSAL OF TH E SAID APPEAL. 4 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF FEBRUARY, 2016. SD/- SD/- (H.L.KARWA) (RANO JAIN) VICE PRESIDENT ACCOUNTANT MEMBER DATED : 17 TH FEBRUARY, 2016 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH