2018 (4) TMI 1647 - AT - Income Tax

Tax Appeals Remitted for Fresh Adjudication: Emphasis on Fair Consideration and Due Process

The appeals were remitted back to the office of the Ld. Commissioner of Income Tax (Appeals) for fresh adjudication due to the appellant's absence and ... Application for grant of registration u/s 12AA - HELD THAT:- After going through the letter and considering the fact that ‘F’ Bench of the ITAT Delhi [2017 (3) TMI 522 - ITAT DELHI] has remitted the issue back to the file of the Commissioner of Income Tax -Meerut to reconsider the assessee’s application for grant of registration u/s 12AA of the Income Tax Act, 1961 and the fact that the Commissioner of Income Tax (Exemption) has completed the set aside hearing and the order is awaited, it would be in the best interest of things if these two appeals are remitted back to the office of the Ld. Commissioner of Income Tax (Appeals) to adjudicate these appeals de novo after duly considering the outcome of assessee’s application before the Ld. Commissioner of Income Tax (Exemption) regarding registration u/s 12AA of the Income Tax Act, 1961. Accordingly, both the appeals are restored to the file of the Ld. Commissioner of Income Tax (Appeals) to adjudicate the issues afresh after giving due opportunity to the assessee to present its case as well as after duly considering the outcome of the assessee’s application for registration u/s 12AA Issues:Cross appeals against order dated 3.7.2013 passed by the Ld. Commissioner of Income Tax (Appeals)-Meerut for assessment year 2009-10.Analysis:Issue 1: Adjournment Request and Remittal of AppealsThe appellant was absent during the hearing, and a letter requested an adjournment as the Ld. Commissioner of Income Tax (Exemption) Lucknow was yet to issue an order on the application for registration u/s 12AA of the Income Tax Act, 1961. The 'F' Bench of ITAT Delhi had remitted the issue back for reconsideration. The tribunal, after considering the circumstances, decided to remit both appeals to the office of the Ld. Commissioner of Income Tax (Appeals) to be adjudicated de novo after reviewing the outcome of the registration application.Issue 2: Restoration of AppealsBoth appeals were restored to the file of the Ld. Commissioner of Income Tax (Appeals) for fresh adjudication, ensuring the appellant gets an opportunity to present its case and taking into account the decision on the application for registration u/s 12AA of the Income Tax Act, 1961. The appeals were allowed for statistical purposes.The judgment emphasized the importance of considering the pending application for registration u/s 12AA in the decision-making process and ensuring a fair opportunity for the appellant to present their case. The decision to remit the appeals back for fresh adjudication reflects the tribunal's commitment to due process and fairness in tax matters.