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Facts
The assessee trust's application for approval under Section 80G was rejected by the Ld.CIT(E). The appeal was filed with a delay, and the assessee claimed they were unaware of the proceedings due to incorrect email communication.
Held
The Tribunal condoned the delay, holding that the notices were sent to an incorrect email address, violating natural justice. The impugned order was set aside, and the application was restored to the Ld.CIT(E) for fresh consideration.
Key Issues
Whether the delay in filing the appeal should be condoned due to non-receipt of notices, and whether the matter should be remanded for fresh consideration due to a violation of natural justice and an inadvertent error in the application.
Sections Cited
80G(5), 80G, 12AB, 11AA(2)
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRIMANOJ KUMAR AGGARWAL
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This appeal preferred by the assessee trust against the order of the Learned Commissioner of Income Tax (Exemption), Chennai, (hereinafter in short "the Ld.CIT(E)”) dated 14.11.2023 rejecting the application filed by the assessee on 04.05.2023 in Form No.10AB under clause (iii) of first proviso to section 80G(5) of the Income-tax Act, 1961 (hereinafter in short “the Act”) seeking approval u/s. 80G of the Act We Can :: 2 ::
At the outset, it is At the outset, it is noticed that there is a delay of 296 days in filing noticed that there is a delay of 296 days in filing of this appeal. The assessee has file of this appeal. The assessee has filed an application for condoning the d an application for condoning the delay along with an affidavit affidavit sworn by Angeline Koilraj, President of the Angeline Koilraj, President of the assessee trust supporting all the averments made in the a assessee trust supporting all the averments made in the a assessee trust supporting all the averments made in the application for condonation of delay.
The contents of the application/affidavit shows that the assessee The contents of the application/affidavit shows that the assessee The contents of the application/affidavit shows that the assessee society is registered u/s. 12AB of the Act society is registered u/s. 12AB of the Act. ‘WE CAN’ is a registered Society which was established in 2012 in the industrial city of Tuticorin Society which was established in 2012 in the industrial city of Tuticorin Society which was established in 2012 in the industrial city of Tuticorin; and aims to combat the ri and aims to combat the rising challenges of pollution & carbon emissions. carbon emissions.
1. WE CAN is registered u/s.12AB of the Income Tax Act, 1961 since it is a WE CAN is registered u/s.12AB of the Income Tax Act, 1961 since it is a WE CAN is registered u/s.12AB of the Income Tax Act, 1961 since it is a charitable trust with the objects of charitable trust with the objects of providing relief to the poor & providing relief to the poor & protection of environment. protection of environment. WE CAN has several veral environmental environmental programs which involve cleaning waste and restoring local ecosystems programs which involve cleaning waste and restoring local ecosystems programs which involve cleaning waste and restoring local ecosystems through tree planting, removing waste from the surrounding areas, through tree planting, removing waste from the surrounding areas, through tree planting, removing waste from the surrounding areas, especially near water bodies and public spaces, while ensuring the soil especially near water bodies and public spaces, while ensuring the soil especially near water bodies and public spaces, while ensuring the soil and air quality are improved and air quality are improved for sustainable living. The organization is for sustainable living. The organization is also involved in restoring the health of water bodies by removing silt and also involved in restoring the health of water bodies by removing silt and also involved in restoring the health of water bodies by removing silt and debris that accumulate at the bottom, maintaining the beauty and health debris that accumulate at the bottom, maintaining the beauty and health debris that accumulate at the bottom, maintaining the beauty and health of our shorelines and maintaining healthy palm tree cultivation a of our shorelines and maintaining healthy palm tree cultivation a of our shorelines and maintaining healthy palm tree cultivation and planting of trees which is crucial for the eco planting of trees which is crucial for the eco-system. WE CAN is also system. WE CAN is also involved in philanthropic activities helping the underprivileged by involved in philanthropic activities helping the underprivileged by involved in philanthropic activities helping the underprivileged by providing education support for children, providing 'food and basic providing education support for children, providing 'food and basic providing education support for children, providing 'food and basic We Can resources during natural disasters such as floo resources during natural disasters such as floods and also distributing ds and also distributing food packets to those in need food packets to those in need and the impugned order was passed by the and the impugned order was passed by the Ld.CIT(E) on 14.11.2023. However, the assessee was not aware of the Ld.CIT(E) on 14.11.2023. However, the assessee was not aware of the Ld.CIT(E) on 14.11.2023. However, the assessee was not aware of the proceedings going on before the Ld.CIT(E), since it didn’t get any going on before the Ld.CIT(E), since it didn’t get any going on before the Ld.CIT(E), since it didn’t get any notices and was in the dark about ark about passing of the impugned order passing of the impugned order. The Ld.AR explained that the notices the notices couldn’t be served upon the assessee because, couldn’t be served upon the assessee because, they were sent to incorrect e correct e-mail id, cagokulan@gmail.com cagokulan@gmail.com; and not to the the updated updated email email i ids dchristy@rediffmail.com dchristy@rediffmail.com & davidselvaraj1995@gmail.com davidselvaraj1995@gmail.com. To support the aforesaid averments the support the aforesaid averments the assessee has filed screenshot of the assessee has filed screenshot of the “My Profile page” of the Income Tax of the Income Tax E-filing Portal reflecting the above email ids and a copy of an email filing Portal reflecting the above email ids and a copy of an email filing Portal reflecting the above email ids and a copy of an email received received from from the the Income Income Tax Tax Department Department after updating the emaildavidselvaraj1995@gmail.com davidselvaraj1995@gmail.com. Therefore, according to . Therefore, according to the Ld.AR, the assessee was not aware of the impugned rejection order and came to the assessee was not aware of the impugned rejection order and came to the assessee was not aware of the impugned rejection order and came to know only about it on 01.11.2024 and within 3 days (i.e. on 04.11.2024) know only about it on 01.11.2024 and within 3 days (i.e. on 04.11.2024) know only about it on 01.11.2024 and within 3 days (i.e. on 04.11.2024) assessee had filed the appeal before this Tribunal. Therefore, prays for assessee had filed the appeal before this Tribunal. Therefore, prays for assessee had filed the appeal before this Tribunal. Therefore, prays for condoning the delay.
In this regard, we note that the notices of hearing w his regard, we note that the notices of hearing w his regard, we note that the notices of hearing were sent to incorrect email id cagokulan@gmail.com cagokulan@gmail.com and not to the email id updated and not to the email id updated by assessee in the portal of department as noted (supra) by assessee in the portal of department as noted (supra) by assessee in the portal of department as noted (supra). Therefore, assessee’s assertion that it never received any notices assertion that it never received any notices as well as the impugned order from the office of Ld.CIT(E) from the office of Ld.CIT(E) has to be accepted has to be accepted, since we We Can note that the notice have been issued to wrong email id te that the notice have been issued to wrong email id and no SMS was and no SMS was also issued to assessee. to assessee. In such circumstances, the assessee can’t assessee can’t be expected to file the appeal within 60 days of the impugned to file the appeal within 60 days of the impugned to file the appeal within 60 days of the impugned order; and after coming to know about the rejection order, it is noted after coming to know about the rejection order, it is noted after coming to know about the rejection order, it is noted that the assessee had filed within 3 days assessee had filed within 3 days the appeal before the Tribunal. the appeal before the Tribunal. In such factual background, we are inclined to condone the delay and proceed to we are inclined to condone the delay and proceed to we are inclined to condone the delay and proceed to examine the appeal filed by the assessee on its own merits. examine the appeal filed by the assessee on its own merits. examine the appeal filed by the assessee on its own merits.
The Ld.AR submitted that the impugned order is an ex The Ld.AR submitted that the impugned order is an ex The Ld.AR submitted that the impugned order is an ex-parte order and therefore, prayed for one more opportunity before the Ld.CIT(E). and therefore, prayed for one more opportunity before the Ld.CIT(E). and therefore, prayed for one more opportunity before the Ld.CIT(E).
Therefore, as noted supra, since the notices were issued on the wrong ore, as noted supra, since the notices were issued on the wrong ore, as noted supra, since the notices were issued on the wrong email id and not in the correct email id of the assessee society (as noted email id and not in the correct email id of the assessee society (as noted email id and not in the correct email id of the assessee society (as noted supra), there is a clear violation of natural justice and therefore the supra), there is a clear violation of natural justice and therefore the supra), there is a clear violation of natural justice and therefore the impugned order of the Ld.CIT(E) is set aside impugned order of the Ld.CIT(E) is set aside and the application is and the application is restored back to the file of the Ld.CIT(E). restored back to the file of the Ld.CIT(E).
6. Having said so, the Having said so, the Ld.AR of the assessee invited our attention to invited our attention to the additional ground nos. 8 additional ground nos. 8 & 9, wherein it has been pointed out & 9, wherein it has been pointed out that the assessee trust while filing application onl assessee trust while filing application online has wrongly clicked clause (ii) clicked clause (ii) of first proviso to section 80G(5) of the Act, whereas it ought to have of first proviso to section 80G(5) of the Act, whereas it ought to have of first proviso to section 80G(5) of the Act, whereas it ought to have been under clause (iii) of first proviso to section 80G(5) of the Act been under clause (iii) of first proviso to section 80G(5) of the Act been under clause (iii) of first proviso to section 80G(5) of the Act and prayed that the inadvertent mistake made while filling up the application prayed that the inadvertent mistake made while filling up the application prayed that the inadvertent mistake made while filling up the application needs to be rectified. Since, we find that the assessee has not . Since, we find that the assessee has not . Since, we find that the assessee has not We Can intentionally clicked clause (ii), but inadvertently had done so, the clicked clause (ii), but inadvertently had done so, the clicked clause (ii), but inadvertently had done so, the mistake committed by the assessee need to be redressed and we mistake committed by the assessee need to be redressed and we mistake committed by the assessee need to be redressed and we accordingly direct the Ld.CIT(E) to treat the application f accordingly direct the Ld.CIT(E) to treat the application f accordingly direct the Ld.CIT(E) to treat the application filed by the assessee as if it has been filed as if it has been filed under clause (iii) of first proviso to section under clause (iii) of first proviso to section 80G(5) of the Act and and process the application in accordance to law; process the application in accordance to law; the assessee is directed to be diligent and file the relevant documents as assessee is directed to be diligent and file the relevant documents as assessee is directed to be diligent and file the relevant documents as required under the statute/Rule 11AA(2) of the I.T. Rules, 1962 required under the statute/Rule 11AA(2) of the I.T. Rules, 1962 required under the statute/Rule 11AA(2) of the I.T. Rules, 1962 and as directed by the Ld.CIT(E) without fail and the Ld.CIT(E) to pass order in directed by the Ld.CIT(E) without fail and the Ld.CIT(E) to pass order in directed by the Ld.CIT(E) without fail and the Ld.CIT(E) to pass order in accordance to law after hearing the accordance to law after hearing the assessee and also issue notices on issue notices on the right email ids as noted supra. the right email ids as noted supra.
In the result, appeal filed by the assessee is allowed for statistical In the result, appeal filed by the assessee is allowed for statistical In the result, appeal filed by the assessee is allowed for statistical purposes.