TaxTMI 
TaxTMI 
2018 (2) TMI 2044
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.... the Commissioner of Income Tax (Exemptions), Chandigarh ('CIT(E)' for short) vide his separate orders of even date, i.e., 28.08.2017. 2. At the outset, it was observed by the Bench that a delay of three days attends the filing of the instant appeals. The same is explained as occasioned due to circumstances beyond the control of the appellant-trust. The delay being nominal and reasonably explained is condoned, and the hearing of the matter was proceeded with. 3. As a perusal of the order u/s. 12AA(1)(b)(ii) shows, the denial of registration by the ld. CIT(E) is due to non-compliance before him by the assessee as well as the report dated 14.08.2017 of the Income Tax Officer (Exemptions), Jammu (ITO (E), for short) called for by the ld.....
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...., with a tacit understanding that it shall be used (on its completion) by the assessee-trust for its purposes. If the same results in attraction of section 13, and a denial of registration on that basis (s. 12AA(4)), the same could only be after affording an opportunity of hearing to the assessee in its respect. The same would in fact also cause denial of the claim for exemption u/s. 11 in assessment. That apart, considered broadly, it cannot, in view of the construction underway with the stated purpose to commence the applicant's activities, be said that no activity had commenced or, more importantly, is not likely to be. Rather, the very fact that registration is sought implies that activities are contemplated or planned, though may take ....
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....out doubt and, at any rate, be countenanced, even as made abundantly clear to the ld. Authorized Representative (AR), the assessee's counsel, during hearing, who promised full cooperation by the assessee if the matter to be set aside for fresh consideration by the ld. CIT(E). In fact, most of the requisitions listed at para 5 of the impugned order are rendered inapplicable (or nil) in view of the nonreceipt of any voluntary contribution - for corpus or otherwise; rather, non maintaining of any bank account, even as stated in the report by ITO(E). We would not have been therefore, under the circumstances, as much depreciative of the assessee's conduct, had it produced the original trust deed and registration certificate, as required by the c....
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.... that no order under sub-clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard.' The hearing before the ITO(E), which was for the limited purpose of seeking the relevant information from the applicant, would not meet the requirement of sec. 12AA(b)(ii) (refer CIT v. Ameliorating India [2017] 399 ITR 196 (P&H)), which is to be prior to the refusal of registration, i.e., upon appropriately show causing the applicant. We are conscious that an applicant can only be granted opportunity for hearing, which has been afforded in abundance by the ld. CIT(E). A show cause by the competent authority to the applicant must however reflect the consideration of the latter's reply, absent in the instant c....