INCOME TAX ACT, 1961

Section 154

Rectification under section 154 - Prayer for one more opportunity of being heard - -

Assessee trust had filed an application in Form 56D on seeking approval under section 10(23C)(vi) The said application was rejected by CCIT for the reason that the CCIT Trust Deed did not have a clause mentioning non-profitable status of the assessee. Thereafter, assessee moved a review petition on CCIT rejected the same noting that there was no provision under the Act for review of an order passed under section 10(23C)(vi). Assessee submitted that review petition was to be considered as application under section 154 seeking rectification of mistake apparent from record. Held: The only reason assigned by CCIT was by stating that the trust deed did not specifically mention that educational institution established by it, was not running for the purpose of profit. Though the Statute did not specifically contemplate an opportunity of personal hearing on facts, CCIT could have afforded an opportunity of personal hearing especially, when assessee had come forward with the plea that the funds are utilized for educational activities and the same was pursued as a charitable activity. Therefore, there was violation of principles of natural justice and matter should be remanded back to CCIT with a direction to examine the entire financials of assessee and take a decision on merits and in accordance with law.

REFERRED : PKD Trust v. ITO (2017) 57 ITR (Trib) 214 (Chen) : 2017 TaxPub(DT) 1015 (Chen-Trib) CIT, Kanpur & Ors. v. Society For The Promn. of Edn., Allahabad (2016) 382 ITR 6 (SC) : 2016 TaxPub(DT) 1237 (SC)

FAVOUR : In assessee's favour by way of remand

A.Y. :

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