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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI MAHAVIR SINGHAND SHRI MANOJ KUMAR AGGARWAL
आदेश /O R D E R
PER MAHAVIR SINGH, VICE PRESIDENT:
This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Exemption), Chennai in Form 10AD of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide Application No.CIT(Exemption), Chennai/2022-23/12AA/13913 dated 15.06.2023.
- 2 - ITA No.979/Chny/2023
At the outset, it is noticed that the appeal filed by the assessee is barred by limitation by 32 days. The impugned order passed by the CIT(Exemption) dated 15.06.2023 was served on the assessee on 15.06.2023. The assessee in its petition supported by affidavit stated that the rejection order in Form No.10AD is dated 15.06.2023 and appeal should have been filed on 14.08.2023 but it was actually filed on 15.09.2023 and thereby, there is a delay of 32 days for the reason that the assessee came to know of this order while logging into the portal of ITBA after almost one month from the expiry of limitation period. As the assessee was not aware about logging into the portal of ITBA and hence, this delay was caused, which is beyond the control of the assessee. When this was confronted to ld.CIT-DR, he objected to condone the delay.
2.1 After hearing rival contentions and going through the reasons in the condonation petition that the assessee has not logged into the portal of ITBA and when he was informed, he logged in almost after the expiry of limitation period. Going by the reasons stated, we find the cause as reasonable and hence, condone the delay and admit the appeal.
3. The only issue in this appeal of assessee is that the CIT(Exemption) erred in not allowing opportunity of being heard or represent, in violation of principles of natural justice. For this, assessee has raised the following grounds 2 to 4, which are effective grounds:-
2. The CIT(E) failed to serve the notices at the registered email id of the Appellant.
Order passed by CIT(E), post depriving the Appellant to participate in the proceedings, is in violation of principles of natural justice.
4. The order of CIT(E) in rejecting the application of the Appellant without giving an opportunity to represent is void ab initio.”
The brief facts are that the assessee is a religious cum charitable trust created on 03.06.2022 for religious activities and for providing relief to the poor. The assessee filed an application for registration in Form No.10A u/s.12A(1)(ac)(vi) of the Act on 20.09.2022. Consequently, provisional registration in Form No.10AC was issued on 27.09.2022 u/s.12A(1)(ac)(vi) of the Act for the AY 2023-24 to AY 2025-26. Subsequently on 02.12.2022, six months prior to expiry of provisional registration, assessee filed Form No.10AB seeking registration u/s.12A(1)(ac)(iii) of the Act. The CIT(Exemption) issued hearing notice on 27.05.2023, 06.06.2023 and served on assessee seeking details. The CIT(Exemption) passed order in Form No.10AD vide dated 15.06.2023 for the reason that - 4 - the assessee is not interested in getting itself registered despite reasonable opportunities afforded to it. The CIT(E) recorded the facts as under:- 5. Subsequently a show cause notice dated 06.06.2023 was issued informing the applicant that it was given final opportunity to furnish the details by 13.06.2023 failing which the application will be disposed on the basis of material available on record, as the limitation of time for disposal of the application expires by 30.06.2023.
6. The above notices were duly served on the applicant by e-mode through ITBA/e-filing portal as per law. However, the applicant neither uploaded the requisite details in the e-filing portal nor sent them by Post.
It is clear from the above that the applicant failed to comply with the notices sent, in spite of reasonable opportunities afforded. In the light of the above facts, it appears that the applicant trust/society/institution is not interested in getting itself registered u/s 12AB of the I.T. Act. For want of the necessary particulars, the above referred application in Form No. 10AB filed by the applicant on 02.12.2022 could not be processed as per the provisions of section 12AB of the I.T. Act.
As the applicant has failed to fulfill the statutory requirements inspite of affording reasonable opportunities, its application in Form No. 10AB dated 02.12.2022 seeking registration u/s.12AB of the I.T. Act, 1961 is rejected for non-compliance. However, no adverse inference is drawn against existing and valid registration, if any, as per law u/s. 12AB.
Aggrieved, assessee came in appeal before us.
We have heard rival contentions and gone through facts and circumstances of the case. We noted that the assessee was issued notices on 27.05.2023 and 06.06.2023 but there is no evidence that these were issued on the registered e-mail id of the assessee. In - 5 - our view, the assessee was not allowed reasonable opportunity of being heard and hence, we set aside the order of CIT(Exemption) dated 15.06.2023 and remand the matter back to his file for fresh adjudication. Needless to say that the CIT(Exemption) will issue notices to the registered e-mail id of the assessee and assessee is also directed to give one dedicated e-mail id to CIT(Exemption), so that he can serve the notices there. In term of the above, order of CIT(Exemption) is set aside and matter remanded back to his file for fresh adjudication.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court at the time of hearing on 31st January, 2024 at Chennai.