PURSHOTTAM MADANLAL CHAMADIA CHARITABLE TRUST,PUNE vs. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax, Exemption, Pune [‘the CIT, Exemption’] dated 31.05.2023 for the assessment year 2023-24 passed u/s 12AA of the Income Tax Act, 1961 (‘the Act’).

At the outset, it is submitted that the appellant was not given reasonable opportunity to respond to the notice issued by the ld. CIT, Exemption. On perusal of the impugned order, it is clear that the appellant was asked to furnish certain information vide letter dated 28.05.2023 requesting the appellant society to file the details on or before 30.05.2023 thereby giving a short period of time i.e. less than one week, which is against the Standard Operative Procedure (‘SOP’) issued by the CBDT dated 19.11.2020, wherein, minimum period of 15 days is required to be given to the assessee to comply with notices u/s 142(1) from the date of issue of the notice. Recently, the Hon’ble Delhi High Court in the case of Dauphin Travel Marketing Private Limited vs. ITO in W.P.(C) 8870/2023 & CM Nos.33516-17/2023 dated 05.07.2023 taking note of this SOP held that the grant of insufficient time to respond the notice violates the principles of natural justice and, therefore, set-aside the assessment. Thus, it is clear that the appellant was given unreasonably short period of time to respond to the notices, which is against the principles of natural justice. Therefore, we set-aside the order passed by the ld. CIT, Exemption and restore the matter back to the file of the ld. CIT, Exemption for fresh disposal in accordance with law after affording reasonable opportunity of being heard to the assessee.