TaxTMI 
TaxTMI 
2017 (2) TMI 1283
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appellantrevenue under Section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 16.3.2016, Annexure A.3 passed by the Income Tax Appellate Tribunal, Division Bench, Chandigarh (in short, "the Tribunal") in ITA No.851/CHD/2015, claiming following substantial questions of law:- i) Whether on the facts and circumstances, the order of the ITAT is not perverse in not deciding the case on merit on the ground that CIT had not conducted the proceedings personally even when the statute empowers the CIT to make inquiries about the genuineness of activities for which he has an established set up in the shape of his office? ii) Whether on the facts and circumstances, the Hon'ble ITAT has not erred in hol....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... In the absence of supporting documents/information, the Commissioner of Income Tax (Exemption) (CIT) held that the activities of the trust could not be said to be genuine and thus rejected the application for registration under section 12AA of the Act, vide order dated 02.09.2015, Annexure A.1. Consequently, the application for approval under Section 80G(5)(iv) of the Act was also rejected, vide order dated 02.09.2015, Annexure A.2. Aggrieved by the order, the assessee filed appeal before the Tribunal. Vide impugned order dated 16.3.2016, Annexure A.3, the Tribunal allowed the appeal and set aside the orders passed by the CIT holding that the proceedings were not conducted by the Commissioner personally and instead the same were conducted ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and transferred on that day to the Principal Commissioner or Commissioner and the Principal Commissioner or Commissioner may proceed with such applications under that sub-section from the stage at which they were on that day. (2) Every order granting or refusing registration under clause (b) of sub-section (1) shall be passed before the expiry of six months from the end of the month in which the application was received under clause (a) or clause (aa) of sub-section (1) of section 12A. (3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) or has obtained registration at any time under section 12A as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996) a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,- (2) to (4) xxxxxxxxxxxxxxxxxxxxxxxxx (5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of subsection (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :- (i) to (iii) (iv) the institution or fund maintains regular accounts of its receipts and expenditure;" 6. Section 12AA of the Act prescribes procedure for registration of trust or institution by the Principal Commissioner or the Commissioner of Income Tax after perusing the objects of the trust or institution and the genu....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 22.8.2015, the Director of the assessee society appeared in the proceedings however there is no signature of the learned CIT(Exemptions) in the order sheet, lastly the order sheet on 2.9.2015 is recorded by Deputy Director (Systems) which reads as under:- "Application of Ameliorating India, Ludhiana for 12A as well as 80G is placed for consideration/approval, Sir. Sd/- DD(systems) At the end of the above order sheet there is initial of CIT(Exemptions). 4.1 The above order sheet support the contention of the assessee that no opportunity of being heard have been granted by the learned CIT(Exemptions) and he did not consider the application on merits. Section 12AA of the Act provides that ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee therefore rightly contended that the order is passed arbitrary without giving any proper/personal opportunity of being heard in the matter. In this view of the matter, we are of the view that impugned orders of the learned CIT(Exemptions) cannot be sustained in law and the matter requires reconsideration at the level of CIT (Exemptions) Chandigarh. 6. We accordingly set aside both the impugned orders and restore the matter in issue to the file of CIT(Exemptions) Chandigarh with direction to re-decide both the matters afresh in accordance with law by giving reasonable sufficient opportunity of being heard to the assessee. We direct that learned CIT(Exemptions) Chandigarh shall hold the proceedings and enquire into the matt....