SHRI KHAKHRECHI PANRAPOLE,GUJARAT V. CIT(EXEMPTIONS),AHMEDABAD, GUJARAT

ITA 873/RJT/2024

AI Insights

The case involves Shri Khakhrechi Panrapole, a trust, appealing against the order of the Learned Commissioner of Income Tax (Exemption), which rejected the trust's application for registration under section 12A(1)(ac)(iii) of the Income Tax Act. The rejection was based on the absence of documentary evidence to prove the genuineness of the trust's activities. The trust contended that it had submitted the necessary documents during the proceedings, which were not considered by the CIT (Exemption), leading to an ex-parte order. The Tribunal found merit in the trust's argument, noting the violation of natural justice, and thus remitted the case back to the CIT (Exemption) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470529 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY PUNGALIYA; LD
• Assessee Lawyers: BHUPENDRA SHAH; LD
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice

Judgement Text

"ITA NO. 873/RJT/2024 SHRI KHAKHRECHI PANRAPOLE, MORBI - 363630 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, AM. & DINESH MOHAN SINHA, JM आयकरअपीलसं./ITA No.873/RJT/2024 Ǔनधा[रणवष[ / Assessment Year: (2024-25) (Hybrid Hearing) Shri KhakhrechiPanrapole, KhakhrechiTaluko Maliya, Morbi - 363630 Vs. CIT( Exemption) Room No. 609, Floor- 6, Aaykar Bhawan(vejalpur), Anand Nagar, Ahmedabad - 380015 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAATK1996P (Appellant) (Respondent) Appellant by : Shri Bhupendra Shah, Ld. AR Respondent by : Shri Sanjay Pungaliya, Ld. CIT(DR) Date of Hearing : 18 /03/2025 Date of Pronouncement : 19 03/2025 आदेश / O R D E R Per, Dr. A. L. SAINI- AM, Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), vide order dated 25.09.2024, wherein, Learned Commissioner of Income Tax (Exemption) has rejected assessee`s application in Form No.10AB, u/s 12A(1)(ac)(iii) of the Act, holding that assessee has failed to file documentary evidences, online, to satisfy about genuineness of the activities of the trust. ITA NO. 873/RJT/2024 SHRI KHAKHRECHI PANRAPOLE, MORBI - 363630 Page | 2 2.At the outset itself, Shri Bhupendra Shah, Learned Counsel for the assessee, begins by pointing out thatduring the proceedings before Learned CIT (Exemption), the assessee filed documents and evidences for registration under section12A(1)(ac)(iii) of the Act, however, the ld. CIT (E ) did not consider the same and passed the ex-parte order without hearing the assessee. Therefore, learned Counsel for the assessee, assailed the impugned order by contending that the assessee could not represent his case before Ld. CIT(E) and the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice.The Ld. Counsel stated that now the assessee-trust wants to submit again the relevant documents and evidencesfor registration,under section12A(1)(ac)(iii) of the Act, before the ld. CIT(E ), therefore,another opportunity to contest the appeal ( issue of registration) before the Ld. CIT(E ) may be granted to the assessee, and therefore, this lis, may be remitted back to the file of the ld. CIT( E ) for fresh consideration/ adjudication. 3. On the other hand, Learned CIT- DR for the revenue, opposed the prayer of the ld. Counsel for the assessee. 4.We have heard the Learned Counsel appearing on behalf of the respective parties at length.We note that in the assessee’s case under consideration, the assessee filed the relevant details and documents before the Ld. CIT( E), for registration under section12A(1)(ac)(iii) of the Act, however, the ld. CIT (E ) did not consider the same and the impugned 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. As we have noted that the assessee had filed the relevant details and documents before the Ld. CIT( E), and not to consider these documents and evidences by ld. CIT(E ), is a violation of principle of natural justice.Considering the above facts, we note that assessee-trust has not given sufficient opportunity of being heard and could ITA NO. 873/RJT/2024 SHRI KHAKHRECHI PANRAPOLE, MORBI - 363630 Page | 3 not plead his case successfully before the ld. CIT(E ). 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. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(E) and remit the matter back to the file of the ld. CIT(E),with a liberty to the assessee to prove his case by producing sufficient evidence/documents to the satisfaction of the Ld.CIT(E ). For statistical purposes, the appeal of the assessee is treated, as allowed. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 19/03/2025. Sd/- Sd/- (DINESH MOHAN SINHA) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER Rajkot (True Copy) Ǒदनांक/ Date: 19/ 03/ 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 "