CITY HEART VIDHYALAY SAMITI,AGRA vs. CIT EXMP., LUCKNOW

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH: AGRA

BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER,AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER

I.T.A No.174/Agra/2018 (ASSESSMENT YEAR-N/A)

City Heart Vidhyalay Samiti C/o Vs.. CIT (Exemption) Mr. Sabbir Abbas 21/274A, Jeoni Lucknow. Mandi, Agra. PAN:AACAC4522C (Appellant) (Respondent)

Appellant by Shri Amit Goyal & Nitin Goyal, Advs. Assessee by Shri Sunil Bajpai, CIT DR.

Date of Hearing 11.07.2019 Date of Pronouncement 31.07.2019

ORDER Per Dr. M. L. Meena, A.M.: The captioned appeal emanates from the order of the ld. Commissioner of Income Tax (Exemptions), Lucknow, [(in short ‘the ld. CIT(E)], dated 19.09.2017, challenging the rejection of registration u/s 12AA of the IT Act 1961, (in short the ‘Act’) without granting adequate opportunity to the assessee society. 2. The assessee society has filed an application for registration u/s 12A(a) of the Act on 31.03.2017 with the ld. CIT(E), Lucknow. The ld. CIT(E) has noted the factum of issue of notice vide his office letter at page no. F.No. CIT(Exemp.)/Lko/12A/OL 174/2017-18/4561 dated 18.08.2017 sent to the applicant on address provided by him via speed post which was returned by postal department with the comments ‘Galat

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Pata Wapas’ and he further mentioned that the applicant is well aware that the application barred by limitation shortly, still no compliance has been made by the applicant. However, the ld. CIT(E) has not mentioned the factum of service of notice on the assessee society. 3. The ld. Counsel for the assessee submitted that applicant is a charitable society that it had filed an application u/s 12A and Form -10A on 31.03.2017 in the prescribed manner alongwith all the required enclosure (APB, page 3 to 5); and that ld. CIT(E) has passed the order u/s 12AA (1)(b)(ii) dated 19.09.2017 without giving any appropriate opportunity to the applicant and the applicant was obviously prevented for participating in the proceedings before the ld. CIT(E) on account of fact that notice of hearing was never served on the assessee and consequently compliance could not be made before the ld. CIT(E). 5. The ld. DR has supported the order of the CIT(E), Lucknow. 6. Heard. It is undisputed fact that notice was not served upon the assessee. 7. It is evident from the face of the impugned order that the address of the applicant society given as under: “City Heart Vidhyalay Samiti 29 1 B, Saraj Khas Tajganj Agra. 282001 U.P.” Whereas in the application u/s 12A filed in Form No. 10 dated 31.03.2017 the address of communication stated by the applicant society is as under: “City Heart Vidhyalay Samiti 29/ 1, Sarai Khan Tajganj, Agra. 282001 U.P.” Thus, it is apparently clear that the notice of hearing was wrongly addressed as a result it could not be served on the applicant society and consequently returned with the postal remarks ‘Galat Pata Wapas’, inter alia the assessee was deprived to participate in the proceedings before the ld. CIT(E).

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On similar facts the Co-ordinate Bench of Agra in the case of ‘Sri Mahavir 8. Digamber Jain Trust’, in ITA No.391/Agra/2017, order dated 06.03.2018 vide para 4 observed as follows: “4. The above contents of the affidavit of Shri Abhishek Jain, manager of the assessee’s trust evince that it was due to the non-delivery of the notice by the said manager of the trust to the office bearers of the trust, that the case went unattended before the ld. CIT(E). The said lapse cannot be said to be intentional, as the assessee cannot be said to have gained anything by not making representation by the ld. CIT(E) in the matter of registration under section 12AA of the IT Act.”