Tribunal Allows Appeal Due to Delay, Natural Justice Violation

The Tribunal condoned the delay in filing the appeal due to bonafide reasons beyond the assessee's control and admitted the appeal for hearing on merits. Regarding the dismissal of the application for registration u/s 12A of the Income Tax Act, the Tribunal found a violation of the principles of natural justice as the assessee was not given a proper opportunity of hearing. Consequently, the impugned order was set aside, and the issue was directed to be re-adjudicated by the CIT-II, Indore, ensuring a fair hearing for the assessee. The appeal was allowed for statistical purposes with this direction.

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Issues:
1. Condonation of delay in filing the appeal.
2. Merits of the case regarding the dismissal of the application for registration u/s 12A of the Income Tax Act.

Condonation of Delay:
The appeal was filed against an order denying registration u/s 12AA(1)(b)(i) of the Income Tax Act, 1961. The delay in filing the appeal was attributed to the non-receipt of the order by the assessee. The assessee contended that the delay was due to bonafide reasons as they were not informed about the order being passed. The assessee filed an application for obtaining the certified copy of the order immediately upon learning about it and filed the appeal within the prescribed time period. The Revenue argued that the delay should not be condoned as there was no proof of service of notice on the assessee. The Tribunal, after considering the submissions, observed that the delay was due to bonafide reasons beyond the control of the assessee. The delay was condoned, and the appeal was admitted for hearing on merits.

Merits of the Case:
Regarding the dismissal of the application for registration u/s 12A of the Act, the assessee argued that the order was passed without affording a due opportunity of hearing. The assessee had submitted the copy of registration under the M.P. Trust Registration Act, 1951, which was not considered by the CIT-II, Indore. The Tribunal noted that the appellant was not provided with a proper opportunity of hearing, leading to a violation of the principles of natural justice. The order was deemed unsustainable in law due to this violation. Consequently, the Tribunal set aside the impugned order and directed the issue to be restored to the file of the CIT-II, Indore, for fresh adjudication, ensuring a fair opportunity of hearing for the assessee. The appeal was allowed for statistical purposes with this direction.

In conclusion, the Tribunal addressed the issues of condonation of delay in filing the appeal and the merits of the case regarding the dismissal of the application for registration u/s 12A of the Income Tax Act. The decision highlighted the importance of providing a fair opportunity of hearing to the assessee and ensuring compliance with the principles of natural justice in such matters.

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