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Facts
The assessee, Imamia Charitable Trust, appealed against an order of the Ld. CIT(Exemption) dated 22.12.2023. The assessee failed to respond to notices issued by the CIT(E) regarding exemption for three years, citing that a key trustee was abroad for an extended period, making it impossible to gather and prepare the extensive details required within the given time.
Held
The Tribunal held that the Ld. CIT(E) summarily rejected the assessee's application without providing a fair opportunity. It was decided that no prejudice would be caused to the revenue by granting an opportunity of being heard. Therefore, the matter was referred back to the Ld. CIT(E) to issue fresh notices to the assessee's valid address and email and adjudicate the issue de-novo, with a directive for the assessee to comply promptly.
Key Issues
Whether the CIT(Exemption) was justified in summarily rejecting the assessee's application for non-compliance, given that the delay was due to the key trustee's foreign travel and the extensive nature of information sought.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI
Before: Dr. B. R. R. Kumar, Sh. Anubhav Sharma
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of ld. CIT(Exemption), Lucknow dated 22.12.2023.
Following grounds have been raised by the assessee:
"Honorable CIT Exemption had issued notices ITBA/EXM/F/EXM43/2023 -24/1058359842(1) on 30/11/2023 and earlier on 25/09/2023 and 17/10/2023. However we unfortunately could not respond to the notices referred there in as our Trustee was travelling out of country from 6th June 2023 to 15th November. The Notice contained 25 points and the period involved were last 3 years. This needed extensive work and time to prepare the response which could not be done within time given due to the trustee’s travel abroad. The trust is sincerely working on its objective of relief to poor. No benefits are being taken by any trustee or anybody other than the genuine beneficiaries. The necessary details and the report on activity is enclosed herewith.”
2 Imamia Charitable Trust 3. At the outset, the ld. AR submitted that the assessee could not furnish the details before the ld. CIT(E) owing to travel of key trustee abroad. We find that the ld. CIT(E) has summarily rejected the application of the assessee. We hold that no prejudice would be caused to the revenue if an opportunity of being heard to the assessee, hence, the matter is being referred to the ld. CIT(E) to issue notices to the valid registered address and on the registered e-mail and adjudicate the issue de-novo. The assessee shall not mis-use the opportunity given and shall comply to the notices issued by the revenue authorities promptly.
In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 21/06/2024.