Judicial Appeal Judgment of Om Vimla Mediclinic vs Ward Exemp 2(4), Delhi – ITA 765/DEL/2022

In the realm of income tax appellate tribunals, each case encapsulates pivotal legal standings and interpretative judgments that significantly impact both appellants and respondents. The case of ITA No.765/Del/2022 marks one such instance where the principles of justice and procedural efficiency were put to test. The appellant, Om Vimla Mediclinic, a public charitable trust registered under sections 12A and 80G of the Income-tax Act, 1961, found itself contesting against the assessment year verdict for 2018-19 imposed by the Additional Commissioner of Income Tax, National E-Assessment Centre, Delhi.

The bone of contention revolves around the handling and disposal of an appeal by the NFAC, Delhi without providing Om Vimla Mediclinic, the appellant, a reasonable opportunity for a fair hearing, thus potentially encroaching upon the principles of natural justice. This article delves deep into the intricacies of the case, outlining the background, proceedings, and the consequential judgment rendered by the Income Tax Appellate Tribunal, Delhi Bench.

Background of the Case

The contention began with the assessment order dated 15.03.2022 for the assessment year 2018-19. The assessee filed its return of income on 25.03.2019 declaring nil income after claiming deduction under section 11 of the Act. However, an issue arose concerning the filing of Form-10 beyond the prescribed timeline, which led to the denial of the benefit under section 11(2) by the Assessing Officer, thereby subjecting the accumulated unutilized income/fund of Rs.36,59,504/- to tax.

Appellate Proceedings

The appellant, seeking redressal, approached the learned Commissioner (Appeals). However, the proceedings turned controversial as the Commissioner (Appeals) without providing the appellant an adequate opportunity for representation, upheld the addition made by the Assessing Officer. This spurred the appeal to the Income Tax Appellate Tribunal, challenging the ex-parte disposal of appeal and highlighting the lack of a reasonable opportunity for being heard.

The Tribunal’s Judgment

In an elaborate judgment, the Tribunal critically evaluated the proceedings of the learned Commissioner (Appeals) and observed significant procedural lapses. It was pointed out that the Commissioner (Appeals) proceeded to dispose of the appeal without due consideration of material facts and without a proper hearing opportunity to the appellant. The judgment emphasized the invisibility of certain attachments in the ITBA and the need for a re-assessment of the documents and facts presented by the appellant.

In light of these observations, the Judicial Member, Shri Saktijit Dey, decided to set aside the impugned order of the learned Commissioner (Appeals) and restored the matter to him for de novo adjudication, ensuring that the appellant is provided a due opportunity for being heard. The grounds laid by the appellant were thus allowed for statistical purposes, marking a significant step towards ensuring fairness and justice in the appellate process.

Conclusion

The case of ITA No.765/Del/2022 serves as a poignant reminder of the importance of adhering to the principles of natural justice and the procedural safeguards enshrined in the legal framework. It underscores the imperative of granting a fair hearing to appellants and the need for transparent and just appellate procedures. As the matter goes back to the learned Commissioner (Appeals) for a fresh adjudication, the legal fraternity and the involved parties eagerly await a resolution that stands the test of equitable justice.

Order pronounced in the open court on 24th June, 2022 by Sd/- (SAKTIJIT DEY), Judicial Member.