RAJKOT INSURANCE INSTITUTE,RAJKOT, GUJARAT V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 70/RJT/2025

AI Insights

The case involves the Rajkot Insurance Institute appealing against the order of the CIT(Exemption), Ahmedabad, which rejected their application for registration under Section 12AB of the Income Tax Act, 1961. The assessee argued that they were unable to submit necessary documents and evidence due to circumstances beyond their control and requested another opportunity to present their case. The CIT(Exemption) had initially passed an ex-parte and non-speaking order, leading to the appeal. The Tribunal recognized the need for a fair hearing and adherence to the principles of natural justice, thus restoring the matter for a fresh decision while imposing a cost on the assessee for their previous non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779878 (ITAT-RAJKOT)
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Appeal Filed On: 29-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY PUNGLIA; LD.
• Assessee Lawyers: KRUTARTH DESAI; LD
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No. 70/RJT/2025 (Ǔनधा[रण वष[ / Assessment Year: (NA) Rajkot Insurance Institute Jeevan Prakash LIC of India, Ground Floor, Tagore Road, Rajkot – 360002 (Gujarat) Vs. CIT(Exemption), Room No. 609, Aayakar Bhavan (Vejalpur), 100ft Road, Ahmedabad-380015 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AADTR7607M (Assessee) (Respondent) Assessee by : Shri Krutarth Desai, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT.DR Date of Hearing : 08/10/2025 Date of Pronouncement : 13/10/2025 आदेश / O R D E R Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad [in short ‘Ld. CIT(E)’], dated 10.09.2023, wherein the CIT(E) rejected the application of the assessee, filed in Form No.10AB, under Section 12AB(1)(ac)(iii) of Income Tax Act, 1961 (in short ‘the Act’). 2. At the outset, the Ld. Counsel for the assessee submitted that the assessee could not submit the relevant documents and evidences before the Ld.CIT(E) due to circumstances beyond its control, therefore, one more opportunity should be given to the assessee to submit the relevant documents and evidences for registration of the trust u/s. 12AB of the Act. The Ld. Counsel for the assessee undertakes the responsibility to file the Printed from counselvise.com Page | 2 ITA No. 70/RJT/2025 Rajkot Insurance Institute relevant documents and evidences before the Ld.CIT(E), on time, and would participate in the proceedings before Ld.CIT(E) and would not seek unnecessary adjournment. 3. On the other hand, the Ld. DR for the revenue submitted that the assessee was negligent in his approach during the proceedings before Ld.CIT(E), therefore, a minimum cost of Rs. 8,000/- should be imposed on the assessee, as the assessee wasted time and resources of the Lower Authorities. 4. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the Ld.CIT(E) and other materials brought on record. We note that in the assessee’s case under consideration, the assessment order passed by the Ld.CIT(E) is an ex-parte order and non- speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee. 5. Considering the above facts, we note that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the ld. CIT(E). The assessee-trust could not file the relevant documents and evidences due to circumstances beyond its control. We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. However, on account of non-compliance attitude of the assessee, we impose a cost of Rs. 8,000/- on the assessee which should be deposited in the Prime Minister National Relief Fund. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(E) for de novo adjudication and pass a speaking order after affording sufficient Printed from counselvise.com Page | 3 ITA No. 70/RJT/2025 Rajkot Insurance Institute opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. It is needless to say that the assessee will be at liberty to adduce any evidences as deemed relevant before the Ld. CIT(E) at the time of proceedings in consequence to this order and the Ld. CIT(E) shall, allow the assessee adequate opportunity of being, heard and to make relevant submissions, and then pass a speaking order which is fair and judicious. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 13/10/2025. Sd/- Sd/- (Dinesh Mohan Sinha) (Dr. Arjun Lal Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Rajkot (True Copy) Ǒदनांक/ Date: 13/10/2025 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By order Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "