ENVIORNMENT MATTERS,CHANDIGARH vs. CIT(EXEMPTION), CHANDIGARH

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ITA 330/CHANDI/2020Status: DisposedITAT Chandigarh15 March 2021AY 2020-214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, considering the lack of complete details and the need for substantial justice, decided to remand the issue back to the CIT(E). The assessee was directed to provide all necessary details for a proper decision.

What were the facts?

The assessee's application for registration under Section 12A of the Income Tax Act was rejected by the CIT(E) for non-furnishing of complete details. The assessee claimed to have filed replies via email, but the CIT(E) noted a lack of response to specific queries.

What were the issues?

Whether the CIT(E) erred in rejecting the application for registration due to incomplete information, and whether the assessee had adequately responded to the notices.

Which sections of the Income-tax Act were involved?

Section 12AA(1)(b)(ii),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH

Before: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM

For Respondent: Smt. C. Chandrakanta, CIT
Hearing: 09.03.2021Pronounced: 15.03.2021

आदेश/ORDER

1.

The present appeal has been filed by the assessee wherein the correctness of the order dated 18.09.2020 of CIT(E), Chandigarh passed u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 is assailed on the following grounds :

“1. That the CIT(E) has erred on facts to reject the application of the assessee for registration under Section 12A of the Income Tax Act.

2. That the Ld. CIT(E) has erred on facts in holding that the assessee has not filed the reply to the proceedings on or before 11.09.2020 whereas the assessee had already filed the reply on the above mentioned date through e-mails as the proceedings were closed by the concerned authority.”

2.

At the time of hearing, an adjournment application has been moved on behalf of the assessee requesting for time in order to file a Paper Book. Considering the fact that the impugned order

ITA-330/CHD/2020 A.Y. 2020-21 Page 2 of 4 has been passed wherein the assessee's reply to office notice dated 21.09.2020 was not made available to the ld. CIT (E) as is evident from para 5 of the order, the appeal was passed over allowing time to the ld. CIT-DR to consider the possibility of remand back of the issue. In the second round, considering the impugned order, the CIT-DR had no objection to the remand back of the issue.

3.

Accordingly, on the basis of the material available on record after hearing the ld. CIT-DR it was deemed appropriate to reject the adjournment application moved on behalf of the assessee and proceed to decide the appeal ex-parte qua the assessee appellant on merits.

4.

A perusal of the record shows that the assessee Trust is shown to be an ongoing entity as it has been in operation from 23.11.2009. The assessee Trust filed an application seeking Registration u/s 12AA on 05.02.2020.

4.1 Considering the aims and objects of the Trust as found discussed in para 2 of the impugned order, the assessee was required to furnish its clarification and reply on 20.02.2020 on the specific issues set out in para 3 of the impugned order.

4.2 A perusal of the record shows that reply to the queries set out in para 3 of the impugned order was partially made available

ITA-330/CHD/2020 A.Y. 2020-21 Page 3 of 4 on 20.03.2020 and 06.06.2020. However, certain queries still remained unaddressed as noticed in para 4 of the impugned order.

4.3 The CIT (E) bringing this shortcoming to the notice of the assessee vide notice dated 21.08.2020 as evident from para 5 of the impugned order further takes note of the fact that even after providing a few more opportunities thereafter, the assessee failed to reply thereto upto 11.09.2020.

5.

In the said background, on a reading of ground No. 2 raised in the present appeal it appears that the claim being put forth is that complete details were made available. The said claim is found to be contrary to the observations made in para 4 and 5 which takes note of the specific fact that the following details were not made available : “4………. 1. On perusal of the affidavit submitted by you, it is observed that you have not mentioned any bank account in your affidavit. Please furnish the same. 2. On perusal of your reply it is noticed that you have not submitted ITR for the A.Y. 2017- 18. Please furnish. 3. On perusal of your financials, it is noticed that you have submitted Income and expenditure statement for the F.Y. 17-18, but no balance sheet has been submitted for the financial year 2017-18. You are required to furnish certified copies of the annual accounts (Audited Balance sheet, Income and Expenditure account/Receipt and Payment account alongwith complete annexures) from F.Y. 2016-17 to 2018-19. 4. You have received donation to the tune of Rs. 67,50,000/- from Sh. Freudenberg NOK during F.Y. 2019-20. Please furnish identity, creditworthiness and genuineness of donor.”

5.1 Accordingly, in the peculiar facts and circumstances of the case taking note of the fact that complete details as required were not available, we in the interests of substantial justice,

ITA-330/CHD/2020 A.Y. 2020-21 Page 4 of 4 deem it appropriate as a last opportunity to remand the issue back to the file of the ld. CIT (E) with a direction to the assessee to ensure full and proper participation before the said authority and make available all necessary details sought for. The ld. CIT (E) is directed thereafter to pass a speaking order in accordance with law. It is made clear that the assessee in its own interests shall not abuse the trust reposed. Said order was pronounced at the time of virtual hearing itself in the presence of the parties via Webex.

6.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 15th March,2021.

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