Bai Ruxmani Vs CIT (ITAT Ahmedabad)
In the case of Bai Ruxmani v. CIT (ITAT Ahmedabad), the Income Tax Appellate Tribunal (ITAT) remanded the case back to the Commissioner of Income Tax (Exemption) (CIT(E)) for re-examination. The appeal was filed against an order dated September 18, 2023, under Section 12A(1)(ac) of the Income Tax Act, which had rejected the approval for the assessee’s charitable trust application. The issue arose from the fact that the notice for the hearing, issued on September 12, 2023, gave the assessee only two working days to appear, which was considered insufficient and against the principles of natural justice. The assessee had argued that the short notice hindered their ability to respond properly.
The ITAT reviewed the appeal and found that the time given to the assessee to comply was inadequate. Acknowledging the argument on the insufficient hearing notice, the ITAT pointed out that the notice should have provided more time, in line with the binding Circular from the Central Board of Direct Taxes (CBDT) dated November 19, 2020, which mandates a 15-day notice. In response, the ITAT decided to remand the case back to the CIT(E) for a fresh hearing, providing the assessee with a fair opportunity. The CIT(E) was directed to pass a new order within 50 days of receiving the remand order, ensuring proper notice and compliance with the law. The delay in filing the appeal was condoned, as the assessee reasonably explained the cause.
Comments are closed.