RADHA GOVIND CHARITABLE TRUST,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

The instant two appeals have been filed at the instance of the assessee are directed against the orders dated 08.08.2023 & 01.08.2023 passed by Commissioner of Income Tax (Exemption) (CIT(E)), Ahmedabad, whereby and whereunder the applications for approval under Section 80G(5)(ii) of the Income Tax Act, 1961, (hereinafter referred to as ‘the Act’) and the application for registration under Section 12A(1)(ac)(ii) of the Act respectively were rejected.

We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record.

The brief facts leading to this case is this that the appellant filed an application for approval under clause (ii) of first proviso to sub-section (5) of Section 80G of the Act in Form No. 10AB electronically and the same was filed in ITBA on 31/03/2023, which was found to be not maintainable and clarification was sought for from the assessee by issuing letter dated 04.07.2023 whereupon the assessee sought for adjournment as contended by the Ld. AR. However, such application for adjournment was not considered. The appellant has already been granted provisional approval on 24.09.2021 under Clause (iv) of First Proviso of Section 80G of the Act for 3 years; accordingly the appellant was required to file the application under Section 80G(5)(iii) in lieu of Section 80G(5)(ii) of the Act as of the view of the Revenue. Finally, the application filed by the assessee dated 31.03.2023 was found to be not maintainable and rejected by the CIT(E) ex parte. Hence, the instant appeal before us.

This matter relates to grant of registration under Section 12A(1)(ac)(ii) of the Act, The application whereof was electronically filed in Form No.10AB on 31.03.2023 which was found to be prima facie not maintainable and clarification was sought for by the Revenue from the appellant. The Ld. AR contended before us that an adjournment was sought for. However, the same was not entertained. The application was rejected ex parte with the view that the assessee is required to file such application under Section 12A(1)(ac)(iii) of the Act in lieu of 12A(1)(ac)(ii) as provisional registration under Sub-clause (vi) of Clause (ac) of Sub-section 1 of Section 12A of the Act was granted. The Ld. DR, on the other hand, relied upon the orders passed by the authorities below.

Having heard the Ld. Counsel appearing for the appellant and having regard to the facts and circumstances of both cases, we are of the opinion that the assessee is required to be given a further opportunity of being heard by the Ld. CIT(E) in order to prevent the miscarriage of justice as the orders impugned are admittedly ex parte order without considering the adjournment & 753/Ahd/2023 [Radha Govind Charitable Trust vs. CIT(E)] - 4 - applications which fact was not controverted by the Ld. DR. We, thus, set aside the issue in both the matters before us to the Ld. CIT(E) to consider the same afresh upon granting opportunity of being heard to the assessee and upon considering the evidences on record or any other evidence which the assessee may choose to file at the time of hearing of the matters. The Ld. CIT(E) is directed to pass orders strictly in accordance with law.

In the result, both appeals preferred by the assessee are allowed for statistical purposes.

In the combined result, both the appeals preferred by the assessee are allowed for statistical purposes.

Both the orders were pronounced in the Open Court on 25.01.2024 at Ahmedabad on the conclusion of the hearing in the presence of both the parties and reduced to writing and signed on 12.03.2024 by ld. Accountant Member at Allahabad(U.P.) and on 20.03.2024 by ld. Judicial Member at Ahemdabad(Gujarat)