TMI Blog2017 (2) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity of being heard. Thus, the impugned order in the present case was held to be violative of the provisions of the Act and the matter was sent to the CIT(Exemptions) to re-decide the issue afresh in accordance with law by giving reasonable sufficient opportunity of being heard to the assessee. No substantial question of law arises - I. T. A. No. 320 of 2016. - - - Dated:- 14-2-2017 - Mr. Ajay Kumar Mittal And Mr. Ramendra Jain JJ. For the Appellant : Mr. Denesh Goyal, Advocate For the Respondent : Mr. Naresh Ghai, Advocate Ajay Kumar Mittal,J. 1. This order shall dispose of ITA Nos. 320 and 346 of 2016 as learned counsel for the parties are agreed that the issue involved in both the appeals is identical. However, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration/approval under section 12AA/80GG(5)(iv) after going through the material/evidence on record that was obtained during the conduct of proceedings which satisfies the condition of section 12AA(1)(a) and 12AA(1)(b) of the Act regarding procedure for registration? 3. A few facts relevant for the decision of the controversy involved as narrated in ITA No.320 of 2016 may be noticed. The respondent-assessee filed application for registration under Section 12AA and approval under section 80G(5)(iv) of the Act on 31.3.2015. During the course of proceedings, the assessee was asked to furnish certain information/documents like original and certified copy of the trust deed, bye laws, memorandum of association, activities, books of account a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake such inquiries as he may deem necessary in this behalf; and ( b ) after satisfying himself about the objects of the trust or institution and the genuineness of its activities, he- ( i ) shall pass an order in writing registering the trust or institution; ( ii ) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant : Provided that no order under sub-clause ( ii ) shall be passed unless the applicant has been given a reasonable opportunity of being heard. (1A) All applications, pending before the Principal Chief Commissioner or Chief Commissioner on which no order has been passed under clause ( b ) of sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 12A as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996) and subsequently it is noticed that the activities of the trust or the institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) of section 13, then, the Principal Commissioner or the Commissioner may by an order in writing cancel the registration of such trust or institution: Provided that the registration shall not be cancelled under this sub-section, if the trust or institution proves that there was a reasonable cause for the activities to be carried out in the said manner. 80G. (1) In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d conduct the proceedings himself after giving opportunity of being heard. Thus, the impugned order in the present case was held to be violative of the provisions of the Act and the matter was sent to the CIT(Exemptions) to re-decide the issue afresh in accordance with law by giving reasonable sufficient opportunity of being heard to the assessee. The relevant findings recorded by the Tribunal read thus:- 4. The assesee submitted that the impugned order has been passed in arbitrary and whimsical manner without proper/personal opportunity of being heard granted to the assessee. The copy of the order sheet is filed on record which was obtained by the assessee under information supplied under RTI Act. The order sheet revealed on 30.4.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been done in the matter by CIT(Exemptions) himself. 5. We may note that law does not empower Deputy Director (Systems) to hear any matter under Section 12AA and 80G(5)(iv) of the Act. It is for the learned CIT(Exemptions) to hear and conduct the proceedings himself after giving opportunity of being heard to the assessee shall pass an order in accordance with law. The order sheet clearly shows that only at the end of entire order sheet, the learned CIT(Exemptions) put his initial. The impugned orders are therefore violative of the provisions of law and do not give power to the CIT(Exemptions) to delegate his power to the Deputy Director (Systems) to hold enquiry and proceedings under the above provisions. The assessee therefore rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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