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Facts
The assessee filed two appeals against ex-parte orders from the CIT(E) concerning applications for charitable registration and 80G approval, alleging lack of reasonable opportunity to be heard. The Revenue acknowledged that the assessee only provided financials and no other details, and the tribunal noted the assessee's non-cooperation despite multiple opportunities from the CIT(E).
Held
The tribunal set aside the CIT(E)'s orders and remitted both appeals for fresh adjudication to ensure substantial justice. The assessee is directed to provide all necessary details and cooperate fully with the CIT(E) for the adjudication of applications under Section 12AB(i)(b)(ii) and Section 80G of the Act, subject to paying a cost of Rs. 10,000/- to the Legal Aid Authority of the Hon'ble Delhi High Court.
Key Issues
Whether the CIT(E)'s ex-parte orders, passed due to the assessee's non-cooperation in providing details, should be set aside and the matter remitted for fresh adjudication with conditions on cost and cooperation.
Sections Cited
12AB(i)(b)(ii), 80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘A’: NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI S RIFAUR RAHMAN,
.- 3141 & 3685/Del/2024 Accord Foundation IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘A’: NEW DELHI) BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER, 3141 and 3685/Del/2024 Accord Foundation, Commissioner of Income Faridabad. Vs. Tax (Exemption), Chandigarh. PAN No: AAJTA1228R APPELLANT RESPONDENT Assessee by : Sh. D.C. Garg, CA Revenue by : Mr. Javed Akhtar, CIT(DR) Date of Hearing : 18.12.2024 Date of Pronouncement : 18.12.2024 ORDER PER MAHAVIR SINGH, VP:
These two appeals by the Assessee are arising out of two different orders of Commissioner of Income Tax (Exemption), Chandigarh, of different dates i.e. 01.12.2022 and 05.12.2022.
At the outset, the Ld. Counsel for the assessee stated that the assessee was not provided reasonable opportunity of being heard to submit the details and to prove that the assessee’s activities are Page 1 of 4 .- 3141 & 3685/Del/2024 Accord Foundation charitable in nature, and the objects and genuineness of activities of the trust. The Ld. Counsel for the assessee stated that practically the order of CIT(E) is a ex-parte order, and without going into the financials etc. When these facts were confronted to the Ld. Sr. DR, he could not controvert the above argument of Ld. Counsel of the assessee and stated that the assessee has not provided any detail simply they have provided the financials only.
After hearing both the sides and going through the facts and circumstances of the case, we noticed that the CIT(E) has fixed this case twice or thrice, but there was non-compliance by assessee. Actually, the assessee is non-cooperative and not providing the details. In such circumstances, we are of the view that to carry out substantial justice, we are remitting these two appeals back to CIT(E), and both the orders of CIT(E) are set aside. The assessee will provide entire details to CIT(E) and will provide full corporation in regard to adjudication of these two application filed u/s 12AB(i)(b)(ii) and U/s 80G of the Act. However, this adjudication is subject to a cost to be paid by assessee of Rs. 10,000/- to Legal Aid Authority of Hon’ble Delhi High Court. The CIT(E) will ask for proof Page 2 of 4 .- 3141 & 3685/Del/2024 Accord Foundation of payment before adjudication of these two applications. In terms of the above, the appeals of the assessee are allowed for statistical purposes.
In the result, appeals filed by assessee are allowed for statistical purposes.