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TMI Blog2018 (2) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of registration. That is, it is his personal satisfaction and judgment alone that is relevant, and it is he who is therefore to form an informed opinion after hearing the applicant. Two, the hearing has to be specifically qua the grounds with reference to which the competent authority considers the application for registration as failing or as infirm, so that the same ought to be refused/not allowed. Not so doing would render nugatory the very purpose of hearing. In the facts of the present case, the only aspect, among the several that inform the denial of registration, as a perusal of the impugned order shows, on which the assessee was show caused, is the absence of dissolution clause in the trust deed. And qua which in fact the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mptions) (HQ), Chandigarh ( Dy. CIT(E) , for short), who had signed the letter dated 13.12.2016 (at PB pages 3-4). Further requisitions as made and information/clarifications called for were furnished vide letters dated 08.02.2017 (on 09.02.2017), 17.02.2017 (on 20.02.2017) and finally on 21.02.2017 (PB pages 5, 6-7, 8), addressed to and appearing before the Dy. CIT(E), who conducted the proceedings. The impression conveyed by him was that the registration would follow, while what the assessee-trust received was the impugned order rejecting the application for registration. No personal hearing in the matter was at any stage granted by the competent authority, who could not possibly delegate the power to grant or refuse registration to anoth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as under: Section 12AA of the Income-tax Act, 1961 provides that the Commissioner on receipt of the application for registration shall call for the documents and after satisfying himself about the objects of the trust or institution and genuineness of its activities, he shall pass an order registering the institution or refusing to register the institution. It also provides that no order under sub-clause (ii) shall be passed unless the assessee has been given a reasonable opportunity of being heard. The section does not enable the Commissioner of Income-tax to delegate his power. Even on merits, the impugned order is without due application of mind in-as-much as it draws on irrelevant considerations and wrong premises. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent authority. His actions, and the proceedings before him, cannot be regarded as de hors or independent of the competent authority. All official acts must even otherwise be, in terms of section 114(e) of the Evidence Act, 1872, regarded as regularly performed. The said notices/ requisitions or proceedings therefore cannot be called into question. Why, would the assessee, even as observed by the Bench during hearing, object thereto if it had been successful, and had been granted registration in pursuance to its said application and the said proceedings? We are therefore unable to persuade ourselves to agree with the contention that the proceedings are legally not valid as the same were conducted by the Dy. CIT(E). In fact, the assessee re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as-much as an adjudicating authority cannot compel the applicant to avail that opportunity. In the facts of the present case, the only aspect, among the several that inform the denial of registration, as a perusal of the impugned order shows, on which the assessee was show caused, is the absence of dissolution clause in the trust deed. And qua which in fact the assessee, vide para (xi) of its letter dated 20.12.2016, states to have been since added. Under the circumstances, therefore, the impugned order, passed without observing the due process of law, is procedurally deficient, constituting an irregularity. The same therefore would warrant a restoration back to the stage at which the irregularity had occurred (Hazari Mal Kuthiala v. ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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