9911796707
TMI Blog2002 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ember, 1993, for setting up an institute for research on desert and desertification. Accordingly, the Gujarat Institute of Desert Ecology, the petitioner herein, was established at Bhuj in May, 1995, and was registered as a public trust and a society. The petitioner was also registered as a trust under the provisions of the Income-tax Act. The petitioner had filed returns for the assessment years 1996-97 and 1997-98 on October 30, 1998. The petitioner also filed an application under section 119(2)(b) of the Act for condonation of delay in giving notice under section 11(1) read with Explanation 2 to section 11 of the Act and for late filing of returns before respondent No. 2. That application came to be dismissed by the Commissioner of Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 119(2)(b) of the Act which does not provide for any personal hearing and, therefore, there is no infirmity in the impugned order. Before proceeding further, we may quote the following principles laid down by the Karnataka High Court in H. S. Anantharamaiah's case [1993] 201 ITR 526: "The power exercisable by the Board under clause (b) of sub-section (2) of section 119 is quasi-judicial in nature. When an authority discharges a quasi-judicial function, it goes without saying that it has to conform to the principles of natural justice. It has to afford an opportunity to the party who is going to be affected by the decision of the authority. Therefore, the Board is required to afford an opportunity of hearing to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 11(2) read with rule 17 of the Income-tax Rules, 1962. Accordingly, all the Commissioners of Income-tax were instructed to dispose of all the applications for condoning delay under section 11(2) in terms of the order dated June 3, 1980. The said order dated June 3, 1980, under section 119(2)(b) provides that the Commissioners of Income-tax will, while entertaining such applications, satisfy themselves that the following conditions are fulfilled (a) that the genuineness of the trust is not in doubt; (b) that the failure to give notice to the Income-tax Officer under section 11(2) of the Act and investment of the money in the prescribed securities was due only to oversight; (c) that the trustees or the settlor have not been benef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of personal hearing.
As far as challenge to the assessment orders dated March 27, 2002, is concerned, since the impugned decision rejecting the application for condoning delay in the matter of exercise of option under section 11(2) of the Act has been set aside, the question of assessment will have to be considered in light of the outcome of the application for condoning delay. In case the delay is condoned, then the petitioner will have appropriate remedy for rectification of the assessment orders which may be pursued after the outcome of the application under section 119(2)(b) of the Act.
The petition is accordingly allowed in terms of the aforesaid directions. Rule is made absolute with no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
|
