Case Number: ITA 1492/DEL/2019
Appellant: Cloth Bank, Meerut UP
Respondent: ITO (Exemptions), Ghaziabad
Assessment Year: 2018-19
Result: 2018-19
Case Filed On: 2019-02-22
Order Type: Final Tribunal Order
Date of Order: 2021-10-08
Pronounced On: 2021-10-08
Bench: Delhi Bench ‘B’, New Delhi
Members: Shri Anil Chaturvedi (Accountant Member) and Shri Sanjay Garg (Judicial Member)
This case involves the appeal filed by Cloth Bank, Meerut UP, against the ex parte order of the Commissioner of Income-Tax (Exemptions), Lucknow, dated 10.12.2018 for the assessment year 2018-19. The primary grievance is the ex parte disposal of the application under Section 12A of the Income Tax Act, 1961, without providing adequate opportunity to the appellant to present its case and necessary documents.
The appellant, Cloth Bank, Meerut UP, filed an application under Section 12A of the Income Tax Act, seeking registration as a charitable institution. However, the Commissioner of Income-Tax (Exemptions) [CIT(E)] disposed of the application ex parte, providing only one opportunity to the appellant to furnish the necessary documents, which was not sufficient.
During the hearing on 05/10/2021, the appellant was represented by Shri Vinod Goel, Advocate, while the respondent was represented by Ms. Nidhi Srivastava, CIT-DR. The primary issue raised was the ex parte disposal of the application by the CIT(E) without granting adequate opportunity to the appellant.
The Tribunal observed that the CIT(E) did not provide adequate opportunity to the appellant to present its case and furnish the necessary documents. The appellant had requested more time to produce the requisite details but was denied. The CIT(E) proceeded to dispose of the application ex parte, which was not in the interest of justice.
The respondent, represented by Ms. Nidhi Srivastava, did not object to the restoration of the matter to the file of the CIT(E) for a fresh adjudication.
In view of the above findings, the Tribunal set aside the impugned order of the CIT(E) and restored the matter to him with a direction to provide the appellant with a proper opportunity to present its case and furnish the necessary documents/evidence. The CIT(E) was directed to decide the application in accordance with the law after considering all relevant documents and submissions from the appellant.
In the result, the appeal by Cloth Bank, Meerut UP, was allowed for statistical purposes. The Tribunal highlighted the importance of providing fair opportunities to appellants to present their cases and adhering to the principles of natural justice.
Decision: Appeal allowed for statistical purposes.
Signed by: Shri Anil Chaturvedi (Accountant Member) and Shri Sanjay Garg (Judicial Member)
Date: 08.10.2021
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