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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 30/09/2024 Date of Order – 22/10/2024
O R D E R PER K.M. ROY, A.M.
The present appeal has been filed by the assessee challenging the impugned order dated 30/09/2024, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”].
2. The assessee has raised following grounds:–
“1. The Hon. CIT-Exemption was not justified on the facts and within law in rejecting the application u/s 12A of the Income Tax Act 1961, without appreciating the fact that the appellant could not comply with the notice due to circumstances beyond its control.
2 Association of Physicians of India Vadarbha Chapter ITA no.191/Nag./2024
The Hon. CIT-Exemption ought to have appreciated the genuineness of activity carried on by the trust by considering the facts of the case.
3. The Hon. CIT Exemptions has failed in providing the sufficient opportunity of being heard. The appellant craves leave to add, amend or alter the above grounds of appeal as the occasion may demand or circumstances may require.”
During the course of hearing, while going through the record, we find that the assessee has furnished the statement of facts, which are reproduced below for better appreciation of facts:–
“The appellant is registered under Bombay Public Trust Act 1950 and Societies Registration Act 1860 vide registration No. Mah-20/14 dated 28.01.2014 The appellant was provisionally registered under sub clause (vi) of clause (ac) of sub- section (1) of section 12A under the Income Tax Act vide URN no. AABTA8764CE20231 dated 28.04.2023 w.e.f AY 2024-25 to AY 2026-27. Since the appellant trust was already engaged in carrying out its charitable activities, the trust applied for regular registration under sub- clause (iii) of clause (ac) of sub-section (1) of section 12A vide filling of Form 10AB dated 29th Sep 2023 within 6 months of getting the provisional registration. Without prejudice to above, the appellant is engaged in the charitable activity of conducting various programs to educate, provide wisdom, conduct of various events, seminars, webinars, conferences and programs to exchange the knowledge of medical science, etc. During the course of assessment proceedings u/s 12A(1)(ac)(iii), notice calling information was issued dated 23.11.2023 for which reply was duly submitted on 08.12.2023 along with the required documents. Further, the show cause notice dated 08.01.2024 was issued on the email id i.e vijaybhattad58@gmail.com of the authorized representative of the assessee who was engaged in the management of accounts of the assessee. The due date for response was 15th Jan 2024. Due to the medical issues of the family members of the authorized representative, the email was not checked by him. This minor fault on the part of representative has caused huge loss on the part of assessee leaving him without allowability of exemption u/s 12A of the Act. As soon as the representative got to know about the receipt of mail when he checked his email on 24th Jan 2024, he immediately filled for 3 Association of Physicians of India Vadarbha Chapter ITA no.191/Nag./2024 adjournment seeking the submission date of 29th Jan 2024. All the data was collated but meanwhile on 27th Jan 2024, the order rejecting the application was passed by Hon'ble CIT (Exemption), Pune. Since the representative was handed over the work of registration procedure, the trustee of the appellant trust was unaware of the communication notices and information asked by the department vide their notice dated 08th Jan 2024. The compliance to the notices issued by the Hon. CIT (Exemptions) could not be submitted only due to the facts mentioned supra. The stated non- compliance considering the fact that, it was not on part of the appellant, the order for rejection of application and order for cancelling the existing provisional 12A registration has been passed by Hon. CIT (Exemptions), Pune. Since the representative, was handed over the work of representation, the Appellant was under bonafide impression that he will do the needful and hence had not checked the portal and due to the above circumstances, the said notice remained to be complied with. Even if the notice would have issued in an physical manner or there could be given an second opportunity of being heard, the appellant could have placed in an better position to take followup or take action over the notice. The fact is that, the appellant was never aware of any notice being issued and the notice was not served properly on the appellant. All the data asked vide the notice dated 08th Jan 2024 which has remained uncompiled, is available with the appellant and thus we hereby request Your Honour to kindly consider this application in the interest of justice and equity to provide the appellant an opportunity of being heard. Without prejudice to above and at a very outset, We assure that, the trust is completely charitable in nature, conducting activities within the ambit of law and trust deed of the trust. There are no violation of any other law for the time being in force and non of the funds or properties of the trust are misused for the benefit of any person. The above facts will enable Your Honour to appreciate that the required details could not be submitted due to the above circumstances beyond the control of the appellant. The appellant craves leave to add to the above facts or substantiate the above facts, with necessary evidences as the occasion may demand or circumstances may require.”
The learned Departmental Representative fairly agreed that the matter needs to be restored to the file of the learned CIT(E) to adjudicate the issues raised by the assessee in its entirety denovo. Accordingly, we set aside the 4 Association of Physicians of India Vadarbha Chapter ITA no.191/Nag./2024 impugned order passed by the learned CIT(E) and restore the matter back to the file of the learned CIT(E) for adjudication afresh after providing reasonable opportunity of being heard to the assessee. Thus, all the grounds raised by the assessee are allowed for statistical purposes.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 22/10/2024