Loading judgment…
Facts
The assessee, a Public Charitable Trust, applied for fresh registration under sections 12AB and 80G(5) of the Income Tax Act. The CIT(E) denied registration ex-parte due to the assessee not responding to notices, citing reasons of being out of station and the email not being noticed.
Held
The Tribunal condoned the delay in filing the appeals. It found that the assessee's application was summarily dismissed without proper opportunity to be heard, and set aside the orders of the CIT(E), restoring the matter for examination on merits.
Key Issues
Whether the denial of registration by the CIT(E) was against the principles of natural justice, and if the assessee should be granted another opportunity to present their case.
Sections Cited
12AB, 80G(5), 12A(1)(ac)(iii), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: DR.BRR KUMAR & SHRI T.R. SENTHIL KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR.BRR KUMAR, VICE PRESIDENT & SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & 2099/Ahd/2024 (Assessment Year: NA) Shree Gopinathji Jyotipith Vs. The Commissioner of Foundation, Income Tax 347 Doshiwadani Pole, (Exemption), Natwerlalji Mandir, Ahmedabad. Kalupur, Ahmedabad-380001. [PAN No.ABKCS2058N] (Appellant) (Respondent) .. Appellant by : Shri Samir Vora, AR on behalf of Shri S.N Divatia, AR Respondent by: Smt. Trupti Patel, Sr. DR Date of Hearing 10.02.2025 Date of Pronouncement 11.02.2025 O R D E R PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER:
These two appeals are filed by the assessee as against the orders dated 02.09.2024 and 03.09.2024, passed by the Commissioner of Income Tax (Exemption) denying registration u/s.12AB and 80G(5) of the Income Tax Act 1961 [hereinafter referred to as ‘the Act’] .
The registry has noted there is a delay of 12 days in filing the above appeals. The assessee has filed Notarized -2099/Ahd/2024 Asst.Year NA - 2– affidavits stating that the assessee’s staffs were on Diwali holidays from 28.10.2024 to 15.11.2024. It is after that assessee filed an appeal and thereby a delay of 12 days occurred in filing the appeal before the Tribunal. Thus, the 12-days delay in filing the above appeals are hereby condoned.
The brief facts of the case are that the appellant is a Public Charitable Trust, incorporated as a non-profit and corporate entity on 16.01.2023 under section 8(1) of the Companies Act 2013. The appellant has filed its application for approval in Form No.10AB u/s.12A(1)(ac)(iii) and u/s.80G(5)of the Act for a fresh registration. The Ld.CIT(E) has issued notices on 04.07.2024 and 07.08.2024 to the Trustee’s email at abhrangoswami@yahoo.com. The above email notices were not noticed by the assessee’s Trust, which has resulted in passing ex-parte order denying registration u/s.12AB of the Act as well as 80G(5) of the Act.
Aggrieved against the above rejection orders the appellant are in appeal before us raising the following grounds of appeals:
5. The Assessee has taken the following grounds of appeal:-
-2099/Ahd/2024 Asst.Year NA - 3–
1.1 The order passed by U/s.12A(1) on 02.09.2024 by CIT(Exemption), Ahmedabad, rejecting the application for registration u/s 12A(1)(ac)(iii) and cancelling the provisional approval is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT (Exem), has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notice dtd. 04.07.2024 due to the concerned person was out of station and the email was sent to his address. Thus, there was a sufficient cause for failure to comply with the notices claimed to be issued by him. 2.2 The Id. CIT (Exem), has grievously erred in law and or on facts in passing the impugned order in gross violation of the principles of natural justice in as much as, no show cause was issued before rejecting the application for registration u/s 12A(1)(ac)(iii). 3.1 The Id. CIT (Exem) has grievously erred in law and or on facts in rejecting the application for registration u/s 12A(1)(ac)(iii) and cancelling the provisional approval. 3.2 That the in the facts and circumstances of the Id. CIT(A), ought not to have rejected the application for registration u/s 12A(1)(ac)(iii) and cancelled the provisional approval.
The Assessee has taken the following grounds of appeal:-
1.1 The order passed by U/s.80G(5)(iii) passed on 03.09.2024 by CIT(Exemption), Ahmedabad, rejecting the application for approval u/s 80G(5)(iii) and cancelling the provisional approval is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(Exem), has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notice dtd. 06.07.2024 due to the concerned person was out of station and the email was sent to his address. Thus, there was a sufficient cause for failure to comply with the notices claimed to be issued by him. 2.2 The Id. CIT(Exem), has grievously erred in law and or on facts in passing the impugned order in gross violation of the principles of natural justice in as much as, a single opportunity was allowed to -2099/Ahd/2024 Asst.Year NA - 4– comply with the notice dtd. 06.07.2024 and no show cause was issued before rejecting the application for approval u/s 80G(5)(iii). 3.1 The Id.CIT(Exem) has grievously erred in law and or on facts in rejecting the application for approval u/s 80G(5)(iii) and cancelling the provisional approval. 3.2 That the in the facts and circumstances of the Ld.CIT(A), ought not to have rejected the application for approval u/s.80G(5)(iii) and cancelled the provisions approval. It is, therefore, prayed that the order of rejection of application for approval u/s.80G(5)(iii) may kindly be set aside and the appellant may be allowed further opportunity.
We have gone through the record before us and find that the application of the assessee has been summarily dismissed, holding that the assessee has neither filed any submission nor sought any adjournment in the case. It was on record that the assessee could not respond to the notice due to the absence of the consultant. On perusal of the object, it was revealed that assessee is incorporated for education, relief for poor, spanning of libraries, publication of books, articles and plantation.
On going through the record, we find that no prejudice will be caused to the revenue, if the opportunity of being heard is given to the assessee. Hence, we hereby set-aside the orders passed by the Ld.CIT(E) and restore the matter to the file of the Ld.CIT(E) to examine the case on merits.. The assessee shall submit all the details sought by the Ld.CIT(E) from time to time without taking unnecessary adjournments.
-2099/Ahd/2024 Asst.Year NA - 5–
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
This Order pronounced in Open Court on 11.02.2025
Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER (True Copy) Ahmedabad; Dated 11.02.2025 Manish, Sr. PS TRUE COPY आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,