SHREE ASTHAA SANSTHA,JAIPUR vs. EXEMPTION WARD-1, JAIPUR

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ITA 395/JPR/2024Status: DisposedITAT Jaipur28 June 2024AY 2022-235 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the assessee was not provided with adequate opportunity to be heard. The three notices issued by the ld. CIT(E) on 25.01.2024, 06.02.2024, and 10.02.2024 were within a short span of 15 days, preventing the assessee from submitting relevant documentary evidence within the stipulated time. Consequently, the Tribunal restored the matter back to the file of the ld. CIT(E) to decide it afresh. The assessee was granted one more opportunity of being heard, subject to depositing a cost of Rs. 3,000/- in the Prime Minister's Relief Fund. The assessee was directed to produce all relevant papers before the ld. CIT(E) along with the receipt of the cost. The Tribunal clarified that this decision does not reflect on the merits of the dispute, which will be adjudicated independently by the ld. CIT(E).

What were the facts?

The assessee, Shree Asthaa Sanstha, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Jaipur, challenging an order dated 24.02.2024 passed by the learned Commissioner of Income Tax (Exemption), Jaipur (ld. CIT(E)). The assessee had applied for registration under Section 12AB of the Income Tax Act, 1961, on 29.09.2023. The ld. CIT(E) rejected the application, citing an incomplete Form 10AB, issues related to the Rajasthan Public Trust Act, 1959, and the genuineness of activities. The assessee contended that it was not provided with an adequate opportunity to be heard, as notices were issued with short timeframes, violating principles of natural justice. The revenue relied on the order of the ld. CIT(E), stating that three opportunities were given and not complied with.

What were the issues?

1. Whether the impugned order passed by the ld. CIT(E) under Section 12AB of the Income Tax Act, 1961, is bad in law and on facts, being without providing adequate and reasonable opportunity of being heard, and thus violating principles of natural justice? (Question of law and fact, concerning Section 12AB). 2. Whether the ld. CIT(E) erred in rejecting the application for registration/approval under Section 12AB of the Act, contrary to law and facts? (Question of law and fact, concerning Section 12AB). Assessee's Contentions: The assessee argued that it was not provided with an adequate opportunity of being heard, as the three notices issued were within a short span of 15 days, violating the principles of natural justice. Therefore, the assessee requested one more opportunity to present its arguments before the ld. CIT(E) in the interest of equity and justice. Revenue's Contentions: The learned Departmental Representative (DR) relied on the order of the ld. CIT(E) and stated that three opportunities were given to the assessee, which were not complied with.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR

Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM

For Respondent: Shri Arvind Kumar (CIT)
Hearing: 18/06/2024Pronounced: 28/06/2024

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ Shree Asthaa Sanstha cuke Exemption, 4, Durga Vihar, Sector No. 3, Malviya Vs. Ward-1, Jaipur. Nagar, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADTS1077L vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri Ashok Kumar Gupta (Adv.) jktLo dh vksjls@Revenue by: Shri Arvind Kumar (CIT) lquokbZ dh rkjh[k@Date of Hearing :18/06/2024 mn?kks"k.kk dh rkjh[k@Date of Pronouncement :28/06/2024 vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M. This appeal is filed by the assessee aggrieved from the order of the Learned Commissioner of Income (Exemption), Jaipur [Herein after referred to as “ld.CIT(E)”] dated 24.02.2024. 2. The assessee has raised the following grounds of appeal:-

“1. The Impugned order u/s 12ABof the Act dated 24/02/2024 is bad in law and on facts, without providing adequate & reasonable opportunity of being heard, being without jurisdiction, 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.

Shree Asthaa Sanstha 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 12ABis 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.

4.

The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.

3.

Brief facts of the case are that the assessee filed online application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act, 1961 was filed on 29.09.2023. In this case, the applications for registration u/s 12A was rejected as withdrawn vide this office order DIN & Notice No. ITBA/EXM/F/FXM45/2022-23/1049327905 (1) dated 01.02.2023. Aletter/notice No. ITBA/EXM/F/EXM43/2023-24/1060113316(1) dated 25.01.2024 was issued at the e-mail/address provided in the application requiring the assesseeto submit certain documents/explanations by 05.02.2024, but no compliance has been made by the assessee. Thereafter, a reminder letter was issued DIN & Notice No. ITBA/EXM/F/EXM43/2023-24/1060573483(1) dated 06.02.2024 wherein date of hearing was fixed as 09.02.2024, but again no compliance has been made the assessee. Further, again one more opportunity was also provided

Shree Asthaa Sanstha to the applicant vide this office DIN & Notice No. ITBA/EXM/F/EXM43/2023-24/1060758512(1) dated 10.02.2024 to submit complete details/information by 15.02.2024. This time also on given date, the assessee had not produced any details/documents. Therefore, the case is decided on the basis of material filed by the assessee along with its application in Form no. 10AB.It is noted that the ld.CIT(E) rejected the assessee’s claim for registration u/s 12AB of the Act on the following grounds:- * Incomplete form 10AB * Rajasthan Public Trust Act, 1959. * Genuineness of activities.

4. Aggrieved from the order of the ld. CIT(E), the assessee preferred an appeal before us taking the ground as raised in para 2 above.

5.

During the course of hearing, the ld. AR of the assessee submitted that assessee was not provided adequate opportunity of being heard . As the three noticed issued were with 15 days time only and thus, the principles of natural justice is violated. Thus, the assessee may be provided one more opportunity to Shree Asthaa Sanstha advance his arguments/submissions before the ld. CIT(E) in the interest of equity and justice.

6.

Per contra, the ld. DR relied on the orders of the ld. CIT(E). Three opportunities were given and not complied.

7.

After hearing both the parties and perusing the materials available on record, it is noted that the application filed by the assessee for seeking registration u/s 12AA of the Act was rejected by the ld. CIT(E) on the following grounds . Incomplete form 10AB Rajasthan Public Trust Act, 1959. Genuineness of activities.

8. Keeping in view the submissions of the ld. AR of the assessee that 3 notices were issued to the assesee on 25.01.2024, 06.02.2024 and 10.02.2024 within a short span of 15 days and the reason that assesee was not able to submit the relevant documentary evidences to support his claim within the short stipulated time . Hence, in this view of the matter, we restore the matter back to the file of the ld.CIT(E) to decide it afresh by providing one more opportunity of being heard to the assessee but at cost of Rs. 3000/- to be deposited in Prime Minister Relief fund. The assessee is directed to produce all the relevant papers concerning the issue in Shree Asthaa Sanstha question before the ld.CIT(E) along with receipt of cost. Thus the appeal of the assessee is allowed for statistical purpose.

9.

Before parting, we may make it clear that our decision to restore the matter back 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.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28/06/2024.

Sd/- Sd/- ¼jkBksM deys'k t;UrHkkbZ ½ ¼MkWa-,l-lhrky{eh½ (RATHOD KAMLESH JAYANTBHAI) (Dr. S. Seethalakshmi) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 28/06/2024 *Santosh आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- Shree Asthaa Sanstha, Jaipur 2. izR;FkhZ@ The Respondent- Exemption, Ward-1, Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. vk;dj vk;qDr¼vihy½@The ld CIT(A) 5. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 6. xkMZQkbZy@ Guard File ( By order,

सहायक पंजीकार@Aेेजज. त्महपेजतंत

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