The Tax Publishers2020 TaxPub(DT) 2574 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 12AA

Since assessee had already submitted the required documents before CIT(E), but the same did not find mention in the order and it can be inferred that those documents filed by assessee were not considered and principle of audi alteram partem is the basic concept of natural justice which implies that a person must be given an opportunity to defend himself, therefore, matter was remanded back to CIT(E) and direct that all the documents filed by assessee be considered and assessee be given one more opportunity of being heard.

Charitable trust - Cancellation of registration under section 12AA - Documents filed by assessee were not considered by Revenue -

Assessee had applied for registration of trust under section 12AA before CIT(E), however, the said application for registration under section 12AA holding that assessee failed to file documentary evidences to enable him to bring satisfaction about the genuineness of assessee-trust activities. Assessee stated that it had already submitted all the required documents which were not considered by CIT(Exemptions). Assessee was entitled for registration under section 12AA on the basis of its objects, without any activity having been undertaken. Held: Since according to assessee, it had already submitted the required documents before CIT(Exemptions), but the same did not find mention in the order. Therefore, it can be inferred that those documents filed by the assessee were not considered. The principle of audi alteram partem is the basic concept of natural justice. The expression “audi alteram partem” implies that a person must be given an opportunity to defend himself. This principle is sine qua non of every civilized society. Supreme Court in the case of Maneka Gandhi v. Union of India [Writ Petition No. 231 of 1977, dt. 25-1-1978] had laid down that rule of fair hearing is necessary before passing any order. Therefore, matter was remanded back to CIT(Exemptions) and it was directed that all the documents filed by the assessee be considered and assessee be given one more opportunity of being heard.

Followed:Maneka Gandhi v. Union of India [Writ Petition No. 231 of 1977, dt. 25-1-1978]Relied:M/s. Ananda Social & Educational Trust v. CIT & Anr. (2020) 114 taxmann.com 693 (SC) : 2020 TaxPub(DT) 1340 (SC) CIT v. M/s. Dawoodi Bohara Jamat [Civil Appeal No. 2492 of 2014, dt. 20-2-2014] : 2014 TaxPub(DT) 1754 (SC)

REFERRED :

FAVOUR : Matter remanded

A.Y. :

IN THE ITAT, AHMEDABAD BENCH

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