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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Shri Mahavir Prasad & Shri Amarjit Singh
Revenue by: Shri Lalit P. Jain, Sr. D.R. Assessee by: Shri S.N. Divetia, A.R. Date of hearing : 25-07-2019 Date of pronouncement : 16-09-2019 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-
This assessee’s appeal arises from order of the CIT(Exemption), Ahmedabad dated 15-04-2019, in proceedings under section 12AA of the Income Tax Act, 1961; in short “the Act”.
The assessee has raised following grounds of appeal:- A.Y. N.A. Page No 2 Institute of Development Education and Learning vs. CIT (Exemption)
“1.1 The order passed u/s. 12AA(l)(b)(ii) on 15-4-2019 by CIT (Exem) - Abad withdrawing the registration of the appellant trust w.e.f. 30.8.2017 is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT (Exem.) has grievously erred in law and or on facts in not allowing sufficient opportunity to explain the delay in filing form 10A in consequence to the modification of the object clause of MOA, Moreover, the Ed CIT (EXEM) has passed the impugned order without considering fully and properly the details / documents uploaded on 3-4-2019 and 4-4-2019. Thus the impugned order Passed by CIT (Exm.) suffers from vice of non-application of mind and gross violation of the principles of natural justice. 2.1 The Ld. CIT (Exm.) has grievously erred in law and on facts in withdrawing the registration of the appellant trust w.e.f. 30.8.2017. The Ld CIT(E) has failed to appreciate that the amendment introduced by Finance Act, 2017 of inserting sub clause (ab) to sub section (1) of section 12AA was not applicable to the facts of the appellant's case and there was no violation of section 12AA(l)(ab) of the Act. 2.2 That in the facts and circumstances of the case as well as in law, the Ld. CIT (Exem) ought not to have withdrawn the registration of the appellant trust w.e.f. 30.8.2017. 2.3 The Ld. CIT (Exem) has failed to appreciate that there was sufficient cause for failure to furnish explanation of the alleged delay. 3.1 The Ld CIT(E) has failed to appreciate that the appellant had furnished all the details, documents as called for in the notice dated 29.3.2019 and the same could be uploaded in two parts due to restriction of size of files. It appears that the Ld. CIT(E) has failed to consider both the aforesaid emails. The e-proceedings response of IT dept. clearly show the aforesaid compliance. It is, therefore, prayed that the order of withdrawal of the registration of the appellant trust w.e.f. 30.8.2017 may kindly be quashed and the registration may be restored.”
All the grounds of appeal are inter-connected to the common issue of withdrawing the exemption vide order u/s. 12AA(1)(b)(ii) of the Income Tax Act, dated 15th April, 2009 by the CIT(Exemption), Ahmedabad.
The fact in brief is that assessee is a public charitable organization established in 1993 as a society under Society Registration Act, 1960. The Society has submitted application on 25th October, 2008 electronically in form No. 10A under Rule 11AA of the act along with registration certificate issued by the Charity Commissioner for registration u/s. 12AA of the act. The CIT(E) has noticed that assessee has made certain modification in its memorandum of association. The changes in memorandum of association and object of association are produced at page no. 1 and 2 in the order of Ld. CIT(E). The CIT(E) Ahmedabad has noticed that as per provision of section A.Y. N.A. Page No 3 Institute of Development Education and Learning vs. CIT (Exemption)
12A(i)(ab) application in form no. 10A is required to be made within 30 days of said modification i.e. on or before 30th Sep, 2017 whereas the assessee has made this application on 25th October, 2018 late by one year and a month. Therefore, the assessee was asked to explain the reason for making delay in filing application in form no. 10A as required under clause (ab) of sub-section (1) of section 12A. The assessee has failed to offer explanation for delay in filling application in form no. 10A within the stipulated time limit therefore the ld. CIT(E) has withdrawn the registration granted earlier u/s. 12AA of the act w.e.f. 30th August, 2017.
We have heard the rival contentions and perused the material on record. The ld. CIT(E) vide letter dated 3rd April, 2019 has asked the assessee to file the reason for delay in filing form no. 10A as the modification in the case of the assessee has been approved by the office of the Charity Commissioner vide his order dated 30th August, 2017. However, the assessee has made application in form no. 10A on 25th October, 2018 late by one year and a month and ld. CIT(E) has withdrawn the approval granted earlier u/s. 12AA on the ground that assessee has failed to explain the reason for delay in making application in form 10A electronically for the approval u/s. 12AA of the act. With the assistance of ld. representatives, we have gone through the paper book submitted by the ld. counsel and other material on record and it is noticed that ld. CIT(E) has issued following notices:- 1. Notice dated 05-03-2019 u/s. 12AA 2. Notice dated 29-03-2019 u/s. 12AA 3. Notice dated 03-04-2019 u/s. 12AA A.Y. N.A. Page No 4 Institute of Development Education and Learning vs. CIT (Exemption)
The assessee has contended that ld. CIT(E) has issued aforesaid notices and it was required to furnish similar kind of documents/clarification/information from serial no. 1 to 14 in all the notices. The assessee has supplied all the information from serial no. 1 to 14 mentioned in the aforesaid notices on 4th April, 2019 well in before the time limit given by the ld. CIT(E) of 10th April, 2019 and the assessee was never asked that it has not furnished any information relating to delay in furnishing of form no.
After perusal of the paper book and other material on record, we find that ld. CIT(E) has not issued any separate notice u/s. 12AA of the act for calling information pertaining to delay in filing form no. 10A by the assesee. It is further noticed that on the last page of the notice issued on 3rd April, 2019, the ld. CIT(E) has also asked the assessee to explain the delay in filing the form no. 10 late by one year and a month. It appears that because of similar type of notices inadvertently the assessee has not supplied reason for delay in filling form no. 10A. The CIT(E) has not issued separate specific notice for explaining delay in filing form no. 10A. Considering the above circumstances, we find merit in the contention of the assessee, therefore, we restore this issue to the file of Ld. CIT(E) for adjudicating afresh after affording adequate opportunities to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 16-09-2019 Sd/- Sd/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER A.Y. N.A. Page No 5 Institute of Development Education and Learning vs. CIT (Exemption)