2023 (9) TMI 539 - AT - Income Tax

Ex-parte order by CIT(E) - Effective service of notice u/s 282 - rejecting the application of the assessee for registration u/s 12AB - As submitted no notice of date of hearing was served by the ld.CIT(E), either through physical mode or through e-mail etc and notice of date of hearing was allegedly uploaded on Income Tax Portal and the assessee was not aware of uploading - HELD THAT - Merely uploading of information about the date of hearing on the Income Tax Portal is not an effective service of notice as per the provisions of Section 282 of the Income Tax Act. The impugned order of the ld.CIT(E) is, therefore, not sustainable in the eyes of law. The same is hereby set aside with a direction to the ld.CIT(E) to decide the appeal of the assessee afresh after giving proper and adequate opportunity to the assessee to present its case. The ld. CIT (E) will serve notice of hearing through physical mode as well as through electronic mode upon the assessee. Assessee appeal is treated as allowed for statistical purposes.

Summary

Issues involved: Appeal against rejection of registration u/s 12AB of the Income Tax Act, 1961 due to lack of proper notice of hearing.

Summary:

Issue 1: Lack of proper notice of hearing
The appeal was filed against the rejection of the application for registration u/s 12AB of the Income Tax Act, 1961. The appellant contested the rejection on the grounds that the order was ex-parte, as the appellant was not given an opportunity to present its case. The appellant's counsel argued that no notice of the date of hearing was served, whether physically or electronically, and the appellant was unaware of any such notice being uploaded on the Income Tax Portal. The Tribunal noted that mere uploading of information on the Portal does not constitute effective service of notice under Section 282 of the Income Tax Act. Consequently, the Tribunal set aside the impugned order and directed the Commissioner to re-decide the appeal after providing proper notice to the appellant through physical and electronic modes.

Decision:
The Tribunal allowed the appeal of the assessee on the grounds of lack of proper notice of hearing, directing the Commissioner to re-decide the matter after ensuring adequate opportunity for the assessee to present its case. The appeal was treated as allowed for statistical purposes.

This summary highlights the key issues involved in the legal judgment and provides a detailed overview of the Tribunal's decision regarding the lack of proper notice of hearing in the case.