The Income Tax Appellate Tribunal (ITAT), Pune, while reminding the income tax authorities on complying with the natural justice principles during the tax proceedings, opined that the authorities should keep in mind the fact that the income tax legislation is a welfare legislation and the assessee should get the benefit of it.
The assessee, in the instant case, was aggrieved with the ex-parte order of the CIT(Exemptions) denying 80G exemption to them, submitted that the assessee is already having 12A certificate.
Emphasizing the principles of natural justice, the assessee argued that the assessee had sufficient reasonable cause for not complying with the notices before the CIT(Exemptions) and non-appearance cannot be attributed to any deliberate misconduct of the assessee and the assessee is always a bonafide assessee and has always cooperated with the proceedings.
Directing the CIT(E) to re-adjudicate the matter, the Tribunal observed that “the reasons explained by the assessee for not complying with the notices before the CIT(Exemptions) cannot be attributed to any deliberate non-appearance or malafide intention of the assessee neither at the time of hearing nor ld. DR could establish any deliberate malafide intention of the assessee and principles of natural justice coupled with the fact that Income-tax legislation is welfare legislation, it is appropriate to provide another opportunity to the assessee to present its case before the CIT(Exemptions). We, therefore, set aside the order of CIT(Exemptions) and remand the matter back to his file to adjudicate the matter afresh and at the same time, we direct the assessee to furnish all the details as asked for by the CIT(Exemptions) and present its case on merits.”
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