ORION EDUCATION SOCIETY ,DELHI V. CIT(EXEMPTION), NEW DELHI

ITA 2403/DEL/2024

AI Insights

The case involves Orion Education Society appealing against the decision of the ld. CIT(E), which rejected their application for registration under section 12AA of the Income-tax Act, 1961. The primary contention of the assessee was the lack of a reasonable opportunity to be heard before the rejection of their application. The Tribunal found merit in the assessee's argument regarding the denial of a fair hearing, which is a fundamental principle of natural justice. Consequently, the Tribunal decided to set aside the matter to the ld. CIT(E) for a fresh evaluation, ensuring that the assessee is given an adequate opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34017 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KAUSHAL
• Assessee Lawyers: SHAFIQ KHAN
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 12AA; 12A

Judgement Text

"ITA No. 1017/DEL/2024 [A.Y. 2017-18] Om Prakash Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 2403/DEL/2024 [A.Y……] Orion Education Society Vs. The C.I.T.[E] House No. 2561, Ramrichpal Street New Delhi Chooriwalan, New Delhi PAN – AAATO2397 L (Applicant) (Respondent) Assessee By : Shri Shafiq Khan, Adv Shri Sudarshan Jha, ADv Department By : Shri Sanjeev Kaushal, CIT- DR Date of Hearing : 12.03.2025 Date of Pronouncement : 19.03.2025 ORDER PER NAVEEN CHANDRA, A.M:- This appeal by the assessee is preferred against the order of the ld. ld. CIT(E), Delhi dated 18.03.2024. ITA No. 2403/DEL/2024 Orion Education Society Page 2 of 4 2. The solitary grievance of the assessee is that the ld. CIT(E) erred in rejecting the registration u/s 12AA of the Income-tax Act, 1961 [the Act, for short] without giving reasonable opportunity of being heard to the assessee. 3. A perusal of the grounds of appeal raised by the assessee reveal that the grievance of the assessee is that the ld. CIT(E) was not justified in in rejecting the application filed u/s 12AA(1)(b)(ii) of the Act. 5. Vide ground No. 2, it is the grievance of the assessee that the assessee was not provided an adequate opportunity to be heard or present their case before the rejection was made. This denial of a fair hearing constitutes a violation of the basic principles of natural justice, rendering the order unjust and unfair. Thus, rejection of application for registration is completely bad in law and liable to be quashed. 6. The ld DR of the Revenue relied on the orders of the ld. CIT(E). ITA No. 2403/DEL/2024 Orion Education Society Page 3 of 4 7. We have heard the rival submissions and have perused the relevant material on record. We find that the ld. CIT(A) should have given adequate opportunity to the assessee to present its case. We are, therefore, of the considered opinion that in the interest of natural justice, the issue u/s 12A of the Act be set aside to the file of the ld. CIT(E) for consideration afresh. 8. In the result, the appeal of the assessee in ITA No. 2403/DEL/2024 is allowed for statistical purposes. The order is pronounced in the open court on 19.03.2025. Sd/- Sd/- [MADHUMITA ROY] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 19th MARCH, 2024. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi ITA No. 2403/DEL/2024 Orion Education Society Page 4 of 4 Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order… 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 3. Date on which the fair Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S./P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S./P.S. on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial 11. The date on which the file goes to the Assistant Registrar for endorsement of the order 12. Date of Despatch of the Order "