THE GRAM VIKAS EDUCATIONAL SOCIETY,FEROZEPUR vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH

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ITA 621/ASR/2019Status: DisposedITAT Amritsar26 November 2019AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal acknowledged the appellant's potential lapse but, considering the CIT(Exemptions) did not decide on merits, restored the issue. The CIT(Exemptions) was directed to decide the application afresh after affording a reasonable opportunity of being heard to the appellant.

What were the facts?

The appellant society applied for approval under Section 10(23C)(vi) of the Income Tax Act. The CIT(Exemptions) issued queries, to which the appellant's replies were deemed incomplete, leading to the rejection of the application. The appellant claimed to have submitted additional responses via email that were not considered.

What were the issues?

Whether the CIT(Exemptions) correctly rejected the application without considering all submitted replies, and whether the appellant was afforded sufficient opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 10(23C)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: SH. N.K.CHOUDHRY & DR. A.L.SAINI

For Respondent: Smt. Prabhjot Kaur (Ld. CIT-DR)
Hearing: 29.11.2019Pronounced: 29.11.2019

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR

BEFORE SH. N.K.CHOUDHRY, JUDICIAL MEMBER AND DR. A.L.SAINI, ACCOUNTANT MEMBER

ITA No.621/Asr/2019 Assessment Year: NIL

The Gram Vikas Educational The CIT(Exemptions), Society, Chandigarh Village Palla Megha, Vs. Tehsil & Distt. Ferozepur. [PAN:AABTG 7217L] (Appellant) (Respondent)

Appellant by : Sh. P. N.Arora (Ld. Adv.) Respondent by: Smt. Prabhjot Kaur (Ld. CIT-DR)

Date of hearing: 29.11.2019 Date of pronouncement: 29.11.2019

ORDER PER N.K.CHOUDHRY, JM:

This appeal has been preferred by the appellant society against the order dated 26.08.2019 passed by the Ld. CIT(Exemptions), Chandigarh, u/s 10(23C)(vi) of the I.T. Act, 1961 (hereinafter called as ‘the Act’).

2.

At the outset, it was observed that application filed on dated 20.08.2019 passed by the Ld. CIT(Exemptions), Chandigarh, u/s 10(23C)(vi) of the Act was taken into consideration by the ld. CIT(E) and by issuing the show cause notice dated 02-07-2019 questionnaire was issued to the appellant. Thereafter the case was fixed for 23-07- 2019 and 29-07-2019. The appellant filed the reply, on perusal of

ITA N0.621/Asr/ 2019 2 The Gram Vikas Educational Society Vs. CIT(E)

which, the additional queries have been raised, which remained un- replied. Consequently, the Ld. CIT(E) declined the approval u/s 10(23C)(vi) of the Act against which the assessee has filed the instant appeal. The appellant has submitted that the additional queries have been responded through email dated 22-08-2019, however the same does not reflect in the impugned order.

3.

We have given our thoughtful consideration to the order impugned herein. Although, the instant appeal of the assessee is liable to be dismissed in order to give effect to the principle that law does not assist the person who is inactive and sleeps over his rights by allowing them when challenged or disputed to remain dormant, without asserting them in a court of law. The, principle which forms the basis of this rule is expressed in the maxim vigilantibus, non dormientibus, jura subveniunt (Law assists those who are vigilant and not those who sleep over their rights), but even a vigilant litigant is prone to commit mistakes. As the aphorism to err is human and is more a practical notion of human behaviour than an abstract philosophy, the unintentional lapse on the part of a litigant should not normally cause the doors of the judicature permanently closed before him. The effort of the court should not be one of finding means to pull down the shutters of adjudicatory jurisdiction before a party who seeks justice, on account of any mistake committed by him, but to see whether it is possible to entertain his grievance if it is genuine, therefore, considering the peculiar facts and circumstances, specifically the Ld. CIT(E) did not pass the order under challenge on merit, hence we feel it appropriate to restore the issue to the file of the Ld. CIT(E) to decide afresh on merits, within 06 months of this order, suffice to say, while affording proper and reasonable

ITA N0.621/Asr/ 2019 3 The Gram Vikas Educational Society Vs. CIT(E)

opportunity of being heard to the assessee/appellant, in order to follow the principle of natural justice. We clarify that in case of failure or default by the appellant society before the Ld. CIT(E), then the Ld. CIT(E) shall be at liberty to decide the application of the appellant society considering the particular facts and circumstances in accordance with law and in that eventuality the appellant society shall not be entitled for any leniency.

6.

In the result, the appeal filed by the assessee stands allowed for statistical purposes.

Order pronounced in the open Court on 29/11/2019.

Sd/- Sd/- (DR.A.L.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29/11/2019. /PK/ Ps. Copy forwarded to: 1. The Appellant 2. The Respondent 3. The CIT 4. Then CIT(Appeals) 5. SR DR, I.T.A.T. Amritsar 6. Guard File True Copy By Order

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