Haryana State Sports Council, Panchkula v. CIT(E), Chandigarh

ITA 287/CHANDI/2020 | 2019-2020
Pronouncement Date: 10-05-2021 | Result: Allowed

Appeal Details

RSA Number 28721514 RSA 2020
Assessee PAN AAAJH0619L
Bench Chandigarh
Appeal Number ITA 287/CHANDI/2020
Duration Of Justice 10 month(s) 10 day(s)
Appellant Haryana State Sports Council, Panchkula
Respondent CIT(E), Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 10-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 10-05-2021
Last Hearing Date 10-05-2021
First Hearing Date 10-05-2021
Assessment Year 2019-2020
Appeal Filed On 30-06-2020
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BE NCH A CHANDIGARH (VIRTUAL COURT) .. !' .. # $% BEFORE: SHRI. N.K.SAINI VP & SHRI R.L. NEGI JM ITA NO. 287/CHD/2020 ASSESSMENT YEAR : HARYANA STATE SPORTS COUNCIL KHEL BHAWAN TAU DEVI LAL SPORTS COMPLEX SECTOR-3 PANCHKULA-134112. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) C R BUILDING 5 TH FLOOR SECTOR-17 CHANDIGARH-160017. PAN NO: AAAJH 0619 L APPELLANT RESPONDENT !' ASSESSEE BY : SHRI B.K. NOHRIA C.A. #!' REVENUE BY : SMT. C. CHANDRAKANTA CIT (DR) $ %! & DATE OF HEARING : 10/05/2021 '()*! & DATE OF PRONOUNCEMENT :10/05/2021 $&/ ORDER PER N.K. SAINI VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 29/08/2019 OF LD. CIT(E) CHANDIGARH. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE IN THE ABSENCE OF ANY SERVICE OF THE NOTICE THE ORDER HAS BEEN PASSED WITHOUT AFFORDING ANY OPPORTUNITY TO EXPLAIN THE OBJECTS AND ACTIVITIES OF APPELLANT WHICH NEEDS TO BE RESTORED TO CIT(EXEMPTION). 2. THAT THE APPELLANT RESERVES THE RIGHT TO ADD AMEND OR DELETE ONE OR MORE OF THE GROUNDS OF APPEAL BEFORE THE APPEAL IS DISPOSED OFF. 2. FROM THE AFORESAID GROUNDS IT IS GATHERED THAT ONLY GRIEVANCE OF THE ASSESSEE RELATES TO THE EX PARTE ORDER PASSED BY TH E LD. CIT(E) WITHOUT AFFORDING OPPORTUNITY OF BEING HEARD. 2 ITA 287/CHD/2020 HARYANA STATE SPORTS COUNCIL VS CIT(E) 3. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASS ESSEE E-FILED FORM NO. 10A FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT 1961 ( HEREINAFTER REFERRED TO AS THE ACT). HOWEVER THE LD. CIT(E) REJECTED THE APPLICAT ION FILED BY THE ASSESSEE BY OBSERVING IN PARAS 2 TO 4 OF THE IMPUGNED ORDER AS UNDER: 2. IN ORDER TO APPRAISE THE ACTIVITIES AND WHETHER THE SAME WERE IN SYNC WITH THE STATED OSTENSIBLE OBJECTS A QUESTIONNAIRE WAS ISS UED ELECTRONICALLY ON 27.04.2019 VIDE WHICH OPPORTUNITY OF PERSONAL HEARIN G WAS ACCORDED TO THE APPLICANT WITH THE REQUEST TO PROVIDE CLARIFICATI ONS TO THE QUERIES RAISED ON 10.07.2019. 3. ON THIS DATE NEITHER DID ANYBODY ATTENDED NOR WAS AN Y REQUEST FOR ADJOURNMENT RECEIVED. IN ORDER TO FOLLOW THE PRINCIPLE OF NATURAL JUSTICE ANOTHER OPPORTUNITY WAS ACCORDED TO THE APPLICANT ON 26. 07.2019 AND MATTER WAS FIXED FOR 09.08.2019. ON THIS DATE NEITHE R DID ANYBODY ATTENDED NOR WAS ANY REQUEST FOR ADJOURNMENT RECEIVED. A NOTHER OPPORTUNITY WAS ACCORDED TO THE APPLICANT ON 14.08.201 9 AND MATTER WAS FINALLY FIXED FOR 22.08.2019. ON THIS DATE NEITHER DI D ANYBODY ATTENDED NOR WAS ANY REQUEST FOR ADJOURNMENT RECEIVED. GIVEN THE NONC OMPLIANCE ON THE OCCASION AFFORDED TO THE ASSESSEE IT BECOMES EVID ENT THAT THE APPLICANT IS NOT INTERESTED IN PURSUING THE MATTER. IN THE ABSENCE OF SUBMISSIONS REGARDING THE ACTIVITIES IT IS DIFFICULT TO VERIFY BOTH THE OBJECTS & GENUINENESS OF ACTIVITIES OF THE COMPANY. IT CAN SAF ELY BE CONCLUDED THAT THE QUERIES RAISED COULD NOT BE ANSWERED BY THE AP PLICANT. 4. FURTHER KEEPING IN VIEW THE UNRESPONSIVE ATTITUD E OF THE APPLICANT IT IS SAFE TO CONCLUDE THAT THE ASSESSEE HAS FAILED TO DISCHAR GE ITS ONUS THIS BEING A BENEFICIAL CLAUSE FOR THE ASSESSEE TO PROVE THAT ITS INCOME IS FREE FROM ELIGIBILITY OF TAXES. IN LIGHT OF THE ABOVE THE A PPLICATION FOR GRANT OF REGISTRATION U/S 12AA IS ACCORDINGLY REJECTED. 4. NOW THE ASSESSEE IS IN APPEAL. 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO NOTICE FOR HEARING WAS SERVED UPON THE ASSESSEE WHO WAS NOT AWARE OF THE D ATE FIXED FOR HEARING ON 22/08/2019. IT WAS STATED BY THE LD. COUNSEL FOR TH E ASSESSEE THAT THE LD. CIT(E) PASSED THE IMPUGNED ORDER EX PARTE WITHOUT COMMENTI NG ON THE OBJECTS OF THE 3 ITA 287/CHD/2020 HARYANA STATE SPORTS COUNCIL VS CIT(E) ASSESSEE WHICH WERE CHARITABLE IN NATURE THEREFORE THE REJECTION OF APPLICATION FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT WAS N OT JUSTIFIED. 6. IN HER RIVAL SUBMISSIONS THE LD CIT-DR STRONGLY SUPPORTED THE IMPUGNED ORDER PASSED BY THE LD. CIT(E) AND FURTHER SUBMITTE D THAT THE ASSESSEE WAS NON- COOPERATIVE AND DID NOT APPEAR WHENEVER THE CASE WA S FIXED FOR HEARING SO IT WAS DIFFICULT TO VERIFY THE OBJECTS AS WELL AS GENU INENESS OF THE ACTIVITIES OF THE ASSESSEE SOCIETY. THEREFORE THE LD. CIT(E) RIGHTLY REJECTED THE APPLICATION MOVED BY THE ASSESSEE. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE IT IS NOTICED THAT THE LD. CIT(E) PASSED THE IMPUGNED ORDER EX PARTE. HE SIMPL Y STATED THAT OPPORTUNITY WAS AFFORDED TO THE ASSESSEE ON 14/08/2019 AND THE MATTER WAS FIXED FOR HEARING ON 22/08/2019. HOWEVER IT IS NOT BROUGHT O N RECORD AS TO WHETHER THE NOTICE FOR HEARING WAS SERVED UPON THE ASSESSEE OR THE AFORESAID DATE WAS INITIMATED TO THE ASSESSEE. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTERM PARTEM. WE T HEREFORE BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE DEEM IT APP ROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER BACK TO THE F ILE OF THE LD. CIT(E) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PRO VIDING DUE AND REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 10/05/2021) SD/- SD/- .. .. (R.L. NEGI) (N.K. SAINI ) # $%/ JUDICIAL MEMBER / VICE PRESIDENT *RANJAN DATE: 10/05/2021 4 ITA 287/CHD/2020 HARYANA STATE SPORTS COUNCIL VS CIT(E) (+! -.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR ITAT CHANDIGARH 6. 8:% GUARD FILE