FIFTY - ONE A ORGANIZATION,PUNE vs. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE, PUNE

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ITA 862/PUN/2023Status: DisposedITAT Pune11 August 20234 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the opportunity of hearing provided by the CIT(Exemption) was inadequate. Therefore, the impugned orders were set aside, and the matters were restored to the file of the CIT(Exemption) for a fresh decision.

What were the facts?

The assessee applied for registration under Section 12AB(1)(b)(ii) and approval under Section 80G. The CIT(Exemption) issued a second notice with a very short compliance period, making it difficult for the assessee to furnish the required voluminous details.

What were the issues?

Whether the CIT(Exemption) provided an effective opportunity of hearing to the assessee before rejecting the applications for registration and approval.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH, ‘A’ PUNE

Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri Shivram R. Gadgil
For Respondent: Shri Naveen Gupta

आदेश / ORDER

PER BENCH :

1.

These appeals by the assessee are directed against the two separate orders passed by the CIT(Exemption) on 31-05-2023 denying the benefit of registration u/s.12AB(1)(b)(ii) and approval u/s.80G of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) Act.

ITA No.862/PUN/2023 :

2.

We have heard the rival submissions and gone through the relevant material on record. The assessee filed application for final registration in Form No.10AB on 25-11-2022. First notice was issued by the ld. CIT(E) fixing the case for hearing and requiring the assessee to furnish details by 03-03-2023. Reply was furnished.

Thereafter, the ld. CIT(E) issued another notice, requiring certain fresh details on 27-05-2023, mandating its compliance by 29-05-2023. Since the assessee could not furnish the necessary details, the order was passed rejecting the application. The ld. AR submitted that the second notice was issued on 27-05-2023, which was Saturday and only one effective day was left for furnishing the reply, which was very voluminous. We appreciate the view point of the assessee that in such a short span of one day, it was difficult to compile the necessary details and furnish the same to the ld. CIT(E).

Opportunity of hearing means effective opportunity of hearing and not merely an empty formality. Here is a case in which the opportunity given by the ld. CIT(E) for compliance was highly inadequate. Taking into consideration the necessary facts and circumstances of the case, we are of the considered opinion that it would be just and fair if the impugned order is set-aside and the matter is restored to the file of the ld. CIT(E). We order accordingly and direct him to decide the appeal afresh after allowing a reasonable opportunity of hearing to the assessee.

ITA No.861/PUN/2023 :

3.

Both the sides are in agreement that the facts and circumstances of this appeal, refusing approval u/s.80G, are mutatis mutandis similar inasmuch as opportunity of hearing granted by the ld.CIT(E) was to the same extent. Following the view taken hereinabove, we overturn the impugned order as well and issue similar direction.

4.

In the result, both the appeals are allowed for statistical purposes.

Order pronounced in the Open Court on 11th August, 2023.

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