SHREE RADHA KRISHAN CHARITABLE SOCIETY,JALANDHAR vs. THE COMMISSIONER OF INCOME TAX EXEMPTIONS, CHANDIGARH
Facts
The assessee, a charitable trust, applied for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The CIT (Exemptions) rejected the application citing insufficient documents, despite the assessee claiming to have submitted them online. The appeal was filed belatedly.
Held
The Tribunal condoned the delay in filing the appeal. It noted that the assessee claimed to have submitted all necessary documents online on 10.07.2024, which appeared to have been overlooked by the CIT(E). The revenue did not object to a remand.
Key Issues
Whether the CIT(E) erred in rejecting the registration application without considering the documents submitted by the assessee? Whether proper opportunity of hearing was granted?
Sections Cited
12A(1)(ac)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH: AMRITSAR.
Before: SH. UDAYAN DAS GUPTA & SH. KRINWANT SAHAY
IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH: AMRITSAR. (HYBRID HEARING) BEFORE SH. UDAYAN DAS GUPTA, JUDICIAL MEMBER AND SH. KRINWANT SAHAY, ACCOUNTANT MEMBER
I.T.A. No.589/Asr/2024 Assessment Year.: 2024-25 Shree Radha Krishan Charitable Vs. CIT (Exemptions), Society Near State Bank of Chandigarh. Patiala, G.T. Road Goraya, Jalandhar. (Respondent) [PAN: AAWAS1100L] (Appellant)
Appellant by Sh. P. N. Arora, Adv. Respondent by Sh. Bharat Bhushan Garg, CIT. DR Date of Hearing 09.04.2025 Date of Pronouncement 24.04.2025 ORDER Per: Udayan Das Gupta, J.M.:
This appeal is filed by the assessee against the order of Ld. CIT (E), Chandigarh, dated 06/08/2024, rejecting the application for registration u/s 12A(1)(ac)(iii) of the Act 61, on the ground of insufficiency of documents.
Condonation of delay:
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It is pointed out by the registry that the appeal is belatedly filed by 27 days. An
application for condonation of delay has been filed by the assessee stating that the
order dated 06.08.2024 passed by the ld. CIT(E), against which the appeal was to
be filed by 05.10.2024, has been actually submitted by post on 01.11.2024 which is
belated by 27 days. It is submitted by the assessee that the authorised counsel was
fully engaged in filing of TDS returns, the last date of which was 31.10.2024 and
as such, he could not prepare the appeal within the time and as such, he prayed that
the delay of 27 days as attributable to the counsel of the assessee, may please be
condoned being unintentional. The ld. DR has no objection. Considering the
submission of the ld. AR of the assessee we condone the delay and admit the
appeal to be heard on merits.
The grounds of appeal contained in Form 36 are as follows:
“1. That the order dated 06/08/2024 passed by the CIT (Exemptions) Chandigarh u/s 12 A(1)(ac)(iii) thereby not granting the registration to the assessee-society is against the facts of this case and is untenable under the law.
That no reasonable and proper opportunity of being heard was allowed by the CIT(E) before passing the said order. As such the order passed by the CIT(E) is bad in the eyes of law and the same is liable to be cancelled.
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That the CIT(E) has grossly erred in not granting the registration. The application for registration u/s 12A(l)(ac)(iii) was duly filed on 13/02/2024. The Ld. CIT(E) did not appreciate that the trust was genuine and the objects of the same were in accordance with the law. It was requested during the course of assessment proceedings that some time may be allowed to file the necessary information as the Accountant was not keeping good health.
That the Ld. CIT(E) did not appreciate that reply was duly filed on 10/07/2024 in response to questionnaire and furthermore time should have been granted for filing the balance reply. The trust is a charitable trust and there was no reason and occasion for not granting the registration as claimed.
That the CIT(E) may be directed to allow the time for filing the balance information as desired as the time allowed was very short.
That any other ground of appeal which may be argued at the time of hearing of the appeal.”
Brief facts emerging from the records are that the assessee is a charitable
trust which applied for registration u/s 12A(1)(ac)(iii) of the Act 1961.
4.1 In response to such application, numerous notices were issued from the
office of the ld. CIT(E) calling for documentary evidences to verify the
genuineness of the activities of the trust. In absence of any response from the
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assessee to nine such notices issued on nine different dates (as evidence from page
6 of the order) issued in the portal as well as in the e-mail ID provided.
In course of hearing before the Tribunal, the ld. AR of the assessee trust
submitted that reply to notices issued by the office of the ld. CIT(E) has been filed
in the online portal on 10.07.2024 along with all necessary documents as called for
by the office of ld. CIT(E). In support of his contention he produced before us the
copy of the e-proceedings response acknowledgement dated 10.07.2024 which
reflects the submission of the documents in the online portal, which has not been
considered by the ld. CIT(E) while disposing of application for registration.
The ld. DR also admits to the submission of this documents in the online
portal as evident from the documentary evidences produced by the assessee and he
had no objection, if the matter is remanded back for fresh consideration.
We have heard the rival submissions and considered the materials on record,
and the documentary evidences produced by the assessee regarding submissions of
all papers and documents uploaded in the portal on 10.07.2024 which has been
overlooked by the ld. CIT(E) while disposing of the application. In the interest of
justice, we remand the matter back to the file of the ld. CIT(E) for consideration of
the application for registration afresh after taking into cognizance of the
documentary evidences submitted by the assessee and we also direct the assessee
I.T.A. No.589/Asr/2024 Assessment Year.: 2024-25 5
to file copies of the said documentary evidences before the ld. CIT(E) and to be
fully cooperate in the fresh proceedings. As such, the appeal of the assessee is
allowed for statistical purposes.
In the result, the appeal of the assessee bearing ITA Nos. 589/Asr/2024 is
allowed for statistical purposes.
Order pronounced on 24.04.2025 at Amritsar, Punjab in accordance with Rule 34(4) of the Income tax (Appellate Tribunal) Rules, 1963.
Sd/- Sd/-
(KRINWANT SAHAY) (UDAYAN DAS GUPTA) Accountant Member Judicial Member
AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The DR, I.T.A.T.
