BHAKTI PREM PADMA SWETAMBER JAIN CHARITABLE SEVA SANSTHAN,UDAIPUR vs. CIT(E), JAIPUR, JAIPUR

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ITA 179/JODH/2022Status: DisposedITAT Jodhpur18 August 2023AY 2021-225 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found reasonable cause for the non-compliance due to the death of the trustee. Therefore, the order of the CIT(E) was set aside for fresh adjudication, with a direction to provide adequate opportunity to the assessee.

What were the facts?

The assessee applied for registration under Section 12AA, but the CIT(E) rejected the application due to non-submission of required documents. The assessee cited the death of a trustee who managed the affairs as a reason for non-compliance.

What were the issues?

Whether the rejection of registration under Section 12AA was justified due to non-compliance, and if there was reasonable cause for such non-compliance.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: SHRI PAVAN KUMAR GADALE & DR. DIPAK P. RIPOTE

For Respondent: Smt. Alka Rajvanshi Jain, CIT-DR
Hearing: 14.08.2023Pronounced: 18.08.2023

ORDER

PER DR. DIPAK P. RIPOTE, AM:

1.

This is an appeal filed by the assessee against the order of Ld. CIT(E) passed under section 12AA of the Act on 26.03.2021. The assessee has raised the following grounds of appeal:- “1. The impugned order u/s 12AA(1)(b)of the Act dated 26.03.2021 is bad in law and on facts of the case and hence the same may kindly be quashed.

2. The Ld. CIT(E) erred in law as well as on the facts of the case in rejecting the Registration u/s 12AA(1)(b) without providing adequate and reasonable opportunity of being heard to the assessee in gross breach of law. The registration u/s 12AA(1)(b) so denied is contrary to the provisions of law and facts of the case. Hence the same kindly be directed to grant the Registration from the year when the application was filled.

Bhati Prem Padma Swetamber jain 3. That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be directed to grant the same modify. Also erred in not considering the material facts available in their true perspective and sense. Hence the ld. CIT(E) be directed to grant Registration u/s 12AA from the date of starting. 3.2. That the ld. CIT(E) may also kindly be directed to submit and modify any details/form/applications if any required for re-registering the assessee u/s 12AA, which is/was required for the assessee in the interest of natural justice.

4.

The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.”

2.

In this case, assessee filed application in Form No. 10A seeking registration under section 12AA of the Act on 19th August, 2020. The Ld. Commissioner of Income Tax (Exemption) gave various opportunities to the assessee and requested assessee to file copy of trust deed, note on activity, copy of bank statement for last three years, copy of income expenditure account balance-sheet for last three years etc,. However, assessee could not submit the said details and hence Ld. Commissioner of Income Tax (Exemption) rejected the application of the assessee.

3.

Aggrieved by the same, assessee filed appeal before this Tribunal.

Bhati Prem Padma Swetamber jain 4. There was a delay in filing appeal before This Tribunal. Assessee filed a condonation petition alongwith the affidavit of the Trustee. On perusal of the affidavit and petition, we are convinced that there was reasonable cause for delay. Hence, we condone the delay. None appeared for assessee on the date of hearing i.e. on 14th 5. August, 2022. However, a letter requesting adjournment was filed by Mr. Mohit Kumar Naharia, Chartered Accountant, the adjournment request has been rejected by this Bench and we proceeded to decide the case based on the records and Ld. DR’s submission.

6.

Heard Ld. DR and perused the records.

7.

As per submission of the assessee, one of the Trustee of the assessee expired and he was the person who was looking after the affairs of the assessee. In this facts and circumstances of the case, since Ld. CIT(E) has rejected the application merely on the ground of non compliance, we are of the opinion that there was reasonable cause for non compliance, hence we set aside the order of the Ld. CIT(E) to Ld. CIT(E) for de novo adjudication. Ld. CIT(E) shall provide appropriate opportunity to the assessee before passing order. The assessee shall file all necessary details before Ld. CIT(E). Accordingly, grounds of appeal

raised by assessee are Bhati Prem Padma Swetamber jain allowed for statistical purpose.

8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced on 18th August, 2023.

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