BG PROFESSIONAL EDUCATION SOCIETY,JAIPUR vs. CIT EXEMPTION, JAIPUR
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BG Professional Education Society
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर
IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR
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BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 713 & 743/JPR/2024
fu/kZkj.k o"kZ@Assessment Year :
LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATB 7213 N vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri S.L. Jain, Advocate &
Shri Ashosk Kumar Gupta, Advocate jktLo dh vksjls@Revenue by: Shri Arvind Kumar, CIT-DR lquokbZ dh rkjh[k@Date of Hearing
: 17/10/2024
mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 08 /01/2025
vkns'k@ORDER
PER: DR. S. SEETHALAKSHMI, J.M.
These are two appeals filed by the assessee against two different orders of the Ld.CIT (Exemption), Jaipur both dated 23-11-2022 passed under section 12AA and 80G of the Income Tax Act, 1961 respectively.
The grounds of appeal raised by the assessee in both the appeals are as under:-
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BG Professional Education Society
ITA NO. 713/JP/2024 – u/s 12AA of the Act
“1. The Impugned order u/s 12AB of the Act dated 23/11/2022 is bad in law and on facts, without providing adequate & reasonable opportunity of being heard, being without juri iction, barred by limitation and for various other reasons illegal, bad in law, glaring violation of natural justice and hence the same may kindly be quashed.
2 The Ld. CIT(E) erred in law as well as on the facts of the case in rejecting the application for granting Registration/approval u/s 12AB. The rejection so made and refusal to grant Registration/approval u/s 12AB is contrary to the provisions of law and facts of the case. The same kindly may be quashed.
3 That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be quashed.
ITA NO. 743/JP/2024 – u/s 80G of the Act
“1. The Impugned order u/s 80G/10AB of the Act dated 23/11/2023 is bad in law and on facts, without providing adequate & reasonable opportunity of being heard, being without juri iction and for various other reasons and hence the same may kindly be quashed.
2. The Ld. CIT(E) erred in law as well as on the facts of the case in rejecting the application for granting Registration/approval u/s 80G. The rejection so made and refusal to grant Registration/approval u/s 80G is contrary to the provisions of law and facts of the case. The same kindly may be quashed.
3. That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be quashed. The Id. CIT(E) may be directed to grant Registration/approval from the date of application.
1 At the outset of hearing, the Bench observed that there are delay of 484 days and 214 days in filing of the appeals relating Section 12AA and 80G of 3 BG Professional Education Society the Act by the assessee for which the ld. AR of the assessee filed applications for condonation of delay with following prayers. “1. In this connection it is submitted that the applicant is Trust/Society incorporated on 22/10/2002 having permanent Registration u/s 12AA as well as 80G of the Act. Thereafter in compliance of direction of Income Tax Department further applied and got Order for Registration u/s 12AA and Order for Approval u/s 80G of the Act w.e.f. 24/09/2021. 2. That due to oversightness an Application had again filed u/s 10AB of the act, for Registration u/s 12AA and for u/s 80G on 06/05/2022 & 16/06/2022 respectively. The mistake as occurred has been rectified by filling an application for withdrawal of both the application dated 06/05/2022 and 16/06/2022 on dated 22/11/2022, but without considering the same the Ld. CIT (E) has rejected both the application u/s 12AA and 80G of the Act vide their order dated 23/11/2022. The same order could not have been challenged before your honours. 3. The reason of late filing was that the impugned order was sent on the email id: advsljain@gmail.com which belongs to Shri Shanti Lal Jain one of founder trustee of the trust which he could not use from long time therefore could not visit such mail and after filling the application u/s 10AB he did not visit a single time and the trustee of the trust are not much aware about information technology therefore not checked the mails as well as income tax portal frequently. The order was sent on dt. 22/11/2023. Recently when surfing the Income Tax Portal that it has come to their notice that a rejection order was there on portal and we have to file an appeal before Hon'ble ITAT. 4. That thereafter counsel has started to prepare the appeal and the appeal has been prepared on 17/05/2024 and getting signed. 5. Thus there was no negligence's of either assessee nor the counsels. Thus due to the above the appeal could not be filed within time. In support of these contention an affidavit of the trustee is enclosed. 6. It is submitted that the Hon'ble Supreme Court in the case of Collector, Land & Acquisition v. Mst. Katiji & Others (1987) 167 ITR 471 (SC) has advocated for a very liberal approach while considering a case for condonation of delay. The following observations of the Hon'ble Court are notable:
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BG Professional Education Society
"The legislature has conferred the power to condone delay by enacting section 5 of the Limitation Act 1963 in order to enable the Courts to do substantial justice to parties by disposing of matters on 'merits". The expression sufficient cause' employed by the legislature is adequately elastic to enable the Courts to apply the law in a meaningful manner which subserves the ends of Justice-that being the life- purpose of the existence of the institution of Courts. It is common knowledge that this Court has been making a justifiably liberal approach in matters instituted in this Court. But, the message does not appear to have percolated down to all the other Courts in the hierarchy."
The said judgment is a leading case on the subject and has a binding force on all the officers subordinate thereto.
7. The action or inaction by an assessee, on the advice of its counsel, whether correct or incorrect, if caused a delay, has been held to be reasonable and sufficient cause in these cases also. Kindly refer N. Balakrishnan v. M. Krishna Murthy (1998) 7 SCC 123
published in 30 BCAJ 922, Concord of India Insurance Co. Ltd. v. Smt. Nirmala Devi and Anothers 118 ITR 507. That it is also settled that for the mistake of the Counsel, the party cannot be suffered.
Reliance on Mahaveer Prasad Jain v/s CIT, 172 ITR 331(MP), Concord India Insurance
Co. Ltd v/s Smt. Nirmala Devi, 118 ITR 507(SC), Kripa Shankar v/s CIT/CWT 181 ITR
183(All), N. Balakrishnan v/s M. Krishanmurthy 7 SSC123. 8. The Hon'ble Jaipur Bench of ITAT has also condoned the delay in the case of Ganesh
Himalaya Pvt.Ltd. v. ACIT 22 Tax World 415 (Jp) where the filing was delayed because the son of the Managing Director had become victim of some mi eeds committed by the Holigans, particularly when on the similar points in the earlier four years, the appeals were filed in time.
In the instant case also, the appeal could not be filed in time because of the above reasons and time taking a various process which were bonafide and was a sufficient cause and there was no melafide intention.
9. Recent Decision of Apex Court: in a recent decision, the apex court have again reiterated that the expression "sufficient cause" should receive a liberal construction. The Hon'ble court have also held that advancing of substantial justice should be of prime importance. Kindly refer Vedbai vs. Shantaram Baburam Patil & Others 253 ITR 798
(SC).
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BG Professional Education Society
Prayer In view of above facts and circumstance and with the sympathy and settled legal position, the delay so caused may kindly be condoned.”
To this effect, the President of the Society filed an affidavit deposing the above facts.
2.2
On the other hand, the ld. DR strongly opposed the condonation applications of the assessee relating to such an inordinate delay in filing the appeals (supra)
2.3
We have heard both the parties and perused the materials available on record. The Bench noted that the reasons advanced by assessee for condonation of delay in late filing of the both appeals have merit and we condone the delay in late filing of the appeals by the assessee in view of the decision of Hon’ble Supreme
Apropos to the ground so raised by the assessee in ITA No. 713/JP/2024, the ld. CIT(E) rejected the assessee’s claim of registration u/s 12AA of the Act by observing as under:-
“03. On verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and the documents required to be accompanied with Form 10AB were not furnished such as:-
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BG Professional Education Society
Self-certified copies the annual accounts of the applicant for last three years.
Self-certified copy of existing order of granting registration u/s 12A
Note on activities of the applicant.
In the light of the above section of the Act and Rules, the Commissioner of Income-tax has been empowered to call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf. Under such powers vested in CIT (E), the applicant was asked to file details required to be furnished along with Form 10AB as well as other details sought thereafter vide letters issued on different dates as mentioned above. However, the applicant has failed to comply with the letters.
04. As discussed above, the applicant did not submit documents regarding establishment of the trust/institution such as:-
Self-certified final accounts for the last three years.
Donation list.
Ownership proof of the premises from which the trust/institution is running its activities.
Bank account statement of the institution as well as evidences in support of his claim.
05. To decide the matter of seeking registration u/s 12AB, the genuineness of the activities being undertaken by the applicant are also to be examined. The applicant has not submitted any such details and other information. Therefore, genuineness of activities of the trust or institution could not be ascertained. Thus, the charitable nature and genuineness of the activities of the applicant could not be established.
06. Sufficient opportunity has been provided to the applicant to produce details and documents in support of his claim for registration u/s 12AB of the Income Tax Act, 1961 but applicant have failed to do so. In the light of the above facts, the application seeking registration u/s 12AB is hereby rejected and filed.”
2 Apropos to the ground so raised by the assessee the ld. CIT(E) rejected the assesee’s claim of exemption u/s 80G of the Act by observing as under:-
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BG Professional Education Society
“1. The applicant filed online application online on 06.05.2022 in Form No.
10AB for seeking exemption u/s 80G of the Income Tax Act, 1961. 2. As per rule 11AA of the Income Tax Rule, 1962, the registration u/s 12A/12AA or notification u/s 10(23C) is a precondition for granting approval u/s 80G of the I.T.
Act.
1961. Vide this office order
No.
ITBA/EXM/F/EXM45/2022-23/1047609303(1) dated 23.11.2022, the applicant
Society/trust/samiti has been denied registration u/s 12AB. Therefore, it is not eligible for exemption u/s 80G of the I.T. Act, 1961. 3. In view of above discussion, the application in form No. 10AB seeking exemption u/s 80G is rejected. The applicant is, however, at liberty to apply afresh after completing the requisite details.”
3 During the course of hearing, the ld. AR of the assessee submitted that the assessee has already been granted permanent registration u/s 12A and 80G of the Act by the ld. CIT(E) vide order dated 24-09-2021 from A.Y.2022-23 to A.Y.2026-27. He further submitted that despite of having permanent registration, the assessee trust again inadvertently applied for registration u/s 12A and 80G of the Act. Later on the assessee trust vide letter dated 19-11-2022 prayed for withdrawal of 12A and 80G Registration as filed on 06-05-2022 before the ld. CIT(E). The ld. AR further submitted that ld. CIT(E) vide order dated 23-11-2022 rejection registration u/s 12A and 80G of the Act. Hence, the ld. AR prayed to restore the matter to the ld CIT(E) to examine the case as to permanent registration u/s 12AA and 80G of the Act and allow relief.
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BG Professional Education Society
4. Per contra, the ld. DR relied on the orders of the ld. CIT(E). 3.5 We have heard both the parties and perused the materials available on record. From the entire conspectus of the case, the Bench noted that the assessee was already granted permanent registration u/s 12A and 80 G of the Act by the ld. CIT(E) vide order dated 24-09-2021 from A.Y. 2022-23 to 2026-27. It is further noted that despite of it, the assessee again filed application for getting permanent registration u/s 12A and 80G and the same has been withdrawn vide letter dated 19-11-2022 but the ld. CIT(E) rejected the same vide his order dated 23-11-2022 without verifying permanent registration already granted to the assesee. Thus the issue of registration u/s 12A and 80G is restored to the file of the ld CIT(E) as to whether the assessee trust has been granted registration from A.Y.2022-23 to 2026- 27, if so, the same may be considered and dispose off the appeals of the appeal as per law. 3.6 Before parting, we may make it clear that our decision to restore the matter back (supra) to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law.
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BG Professional Education Society
0 In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 08/01/2025 ¼jkBksM deys'kt;UrHkkbZ ½
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(RATHOD KAMLESH JAYANTBHAI)
(Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member
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Tk;iqj@Jaipur fnukad@Dated:- 08 /01/2025
*Santosh *
आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
1. The Appellant- BG Professional Education Society, Jaipur.
izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZQkbZy@ Guard File ITA No. 713 & 743/JPR/2024) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत
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BG Professional Education Society
//
///3.3 During the course of hearing, the ld. AR of the assessee in both the appeals mainly submitted that the assessee was not provided adequate opportunity of being heard by the ld. CIT(E) and he may be given one more chance to argue and submit the documents as desired by the ld. CIT(E) with a view to settling dispute in question (supra).
3.4. Per contra, the ld. DR relied on the orders of the ld. CIT(E).
3.5
We have heard both the parties and perused the materials available on record. It is noticed that to decide the matter as to registration u/s 12AB of the Act, it was required by the ld.CIT(E) to examine the activities being undertaken by the applicant for which the applicant trust had not submitted
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BG Professional Education Society the desired details and information raised by the ld. CIT(E) in his order.
Thus the genuineness of the activities of the applicant trust could not be ascertained and established in spite of providing sufficient opportunities by the ld. CIT(E). The ld.AR of the assessee submitted that he had submitted the details / application which was rejected by the ld. CIT(E) without considering the same. Taking into consideration entire conspectus of the case, the Bench feels that one more chance should be given to contest the case and resubmit the documents/details as desired by the ld. CIT(E) in his order. Hence, we restore the matter back to the file of the ld. CIT(E) with the direction to the assessee to submit the details as mentioned in his order who will hear the case of the asssessee afresh and pass suitable order in accordance with law
3.6
Since we have restored the appeal of the assessee with regard to the registration u/s 12AA of the Act to the file of the ld. CIT(E) for afresh adjudication, therefore, the outcome of appeal of the assessee u/s 80G of the Act is consequential in nature.
3.7
Before parting, we may make it clear that our decision to restore the matter back (supra) to the file of the ld. CIT(E) shall in no way be construed as having
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BG Professional Education Society any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law.
4.0
In the result, both the appeals of the assessee are allowed for statistical purposes.