JERMEL'S ACCADEMY,KOLKATA vs. CIT(EXEMPTION), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH AT KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.738/Kol/2024 Assessment Year:

Jermel’s Academy CIT(Exemption), Kolkata Vs C/o Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd floor, Kolkata-700069. (Appellant) (Respondent)

Present for: Appellant by : Shri Siddharth Agarwal, Advocate Respondent by : Shri Subhendu Datta, Sr. DR

Date of Hearing : 02.07.2024 Date of Pronouncement : 22.07.2024

O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemption), Kolkata [hereinafter referred to as “the Ld. CIT(E)]” passed vide Form No. 10AD rejecting the application of the assessee for grant of approval as per the provisions of section 12A(1)(ac)(iv) of the Income tax Act, 1961 (hereinafter referred to as the “Act”) vide DIN No. ITBA/EXM/F/EXM45/2023- 24/1060742555(1) dated 09.02.2024.

“1. For that on the facts and circumstances of the case, the Ld. CIT(Exemption), Kolkata was not justified in passing an ex parte order.

2 ITA No. 738/Kol/2024 Jermel’s Academy, AY: 2024-25 2. For that on the facts and circumstances of the case, the Ld. CIT(E), Kolkata was not justified in rejecting the application for grant of approval u/s. 12A(1)(ac)(iv) filed by the assessee trust in Form No. 10A. 3. The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing.” 3. The brief facts of the case are that the assessee filed an application for approval u/s. 12A(1)(ac)(iv) of the Act. According to Ld. CIT(E), these provisions are applicable in respect of trust/institution whose registration has become inoperative due to the first proviso to section 11(7) of the Act. Accordingly, he directed the assessee to submit following details/information.

a) Copy of form No. 10A filed in the financial year 2022-23 for the grant of registration. b) Copy of order received by the assessee in form no. 10AC c) Copy of approval u/s. 10(23C) or Notification u/s. 10(46) of the Act (refer section 11(7) and its provisos). 3. In case the aforesaid application was wrongly filed, the same may be withdrawn and intimation may be given at the earliest. 4. The assessee was afforded opportunity vide notice dated 16.01.2024 fixing hearing on 19.01.024. However, according to the Ld. CIT(E), the assessee chose not to reply to the questionnaire. Hence, in the absence of any reply or response from the assessee, the matter was decided ex parte. Aggrieved, the assessee has filed this application before this Tribunal.

“BEFORE THE NOTARY PUBLIC AFFIDAVIT

3 ITA No. 738/Kol/2024 Jermel’s Academy, AY: 2024-25 I, Salim John Sadiq, son of Riyaz Nasim Sadiq, aged 49 years, by religion Christian, working for the gain at 52, Rashbehari Sarani, Siliguri, Darjiling - 734001, do hereby solemnly affirm and state as follows - 1. That I am the trustee of Trust, Jerrnel's Accademy (hereinafter referred to as assessee). As such, I am competent to swear this affidavit on behalf of the said concern. 2. That an application for approval u/s 12A(1)(ac)(iv) in Form No. 10AB was filed before the Commissioner of Income Tax (Exemption) on 30.09.2023. 3. That the section code for approval was inadvertently filled up as 12A(1)(ac)(iv) instead of 12A(1)(ac)(iii). 4. That the said application was rejected by the CIT(E), Kolkata vide an ex parte order dated 09.02.2024 on the ground that no response was made to the notices issued on 29.12.2023 and 16.01.2024. 5. That the assessee trust was run and administered by the Board of Trustees who have little knowledge of the Income Tax and were under the impression that notices/orders will be served in physical mode. 6. That the notices were served in the email id of persons who are not involved in day-to-day management of the activities of the trust and do not access email regularly. 7. That on or around the month of March 2024, when we contacted CA Sri Avijit Dutta to enquire upon the status thereupon it transpired that an ex parte order was already passed on 09.02.2024. 8. That then the said CA prepared the appeal papers and accordingly deposited in the office of Hon’ble Income Tax Appellate Tribunal on 08.04.2024. 9. That because of the above genuine reasons, proper compliances could not be made before the Ld. CIT (Exemption), Kolkata. 10. That I give an undertaking that proper compliance shall be made in case the abovementioned case is restored back to the lower authorities by the Hon'ble Tribunal. 11. That the facts stated in para 1 to 10 is true to the best of my knowledge and belief and paragraph 11 is an undertaking by me.” 6. At the time of hearing, the assessee through its grounds of appeal submitted that the Ld. CIT(E) was not justified in passing ex parte order rejecting the application for grant of approval. Ld. Counsel for the assessee, therefore, prayed to set aside the order of the Ld. CIT(E) and

4 ITA No. 738/Kol/2024 Jermel’s Academy, AY: 2024-25 restore the matter to his file for fresh adjudication after affording a reasonable opportunity of being heard to the assessee.

Order pronounced in the open court on 22nd July, 2024. Sd/- Sd/- (Sanjay Garg) (Rakesh Mishra) Judicial Member Accountant Member

Dated: 22nd July, 2024 JD, Sr. P.S. Copy to:

//True Copy// By Order

Assistant Registrar ITAT, Kolkata Benches, Kolkata