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2021 (7) TMI 758 - AT - Income TaxExemption u/s 11 - Applicants registration granted u/s 12AA of the Act had been cancelled by the Ld.Pr.CIT - Denial of natural justice - Assessee seeking stay of the operation of the order of the Ld. Pr.CIT as the order had been passed in violation to the principles of natural justice without providing opportunity of being heard and without providing sufficient time to rebut the allegations made in the show cause notice - HELD THAT:- Prima facie case has been made out by the applicants of grave injustice being done to them by the passing of the impugned orders of the Ld.Pr.CIT u/s 12AA(3)(4) of the Act ,to which the present stay applications pertain. Prima facie the applicants have demonstrated denial of fair hearing by the Ld.Pr.CIT while passing the orders cancelling registration pointing out that despite seeking time to file submissions on merits the Ld.Pr .CIT passed his order without affording any such opportunity. .DR was unable to make any strong arguments to rebut the same only pointing out to the opportunity afforded when replies were filed by the assessee raising jurisdictional objections .The said orders undoubtedly have serious adverse implications on the pending assessment proceedings consequent to search action on the assessee. In the absence of registration u/s 12AA of the Act, the income of the assessee no longer remains eligible for exemption u/s 11 and 12 of the Act and further the AO may have his own limitations in conducting a fair investigation on the search material before him when the Ld.Pr.CT on the basis of the very same material has found the activities of the assessee not eligible for registration. Further noting the fact that the limitation for passing the assessment order is 30/09/2021, we are of the view that interest of all would be subserved by an early hearing of the appeals against order of the Ld.Pr.CIT in which the present applications have been filed. The present stay applications relate are directed to be fixed for hearing on 07.07.2021
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