WOMEN SPORTS FOUNDATION,KARNAL vs. CIT EXEMPTION, CHANDIGARH

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ITA 776/CHANDI/2023Status: DisposedITAT Chandigarh12 August 2024AY 2022-23Bench: SHRI VIKRAM SINGH YADAV (Accountant Member), SHRI PARESH M. JOSHI (Judicial Member)6 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the impugned order was ex-parte and violated the principles of natural justice as no effective opportunity was provided to the assessee. The order was set aside.

What were the facts?

The assessee applied for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(E) issued multiple questionnaires and opportunities for submission, but the assessee failed to respond, leading to the rejection of the application.

What were the issues?

Whether the CIT(E) followed the principles of natural justice by providing adequate opportunities to the assessee before rejecting the application for registration.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 253

AI-generated summary — verify with the full judgment below

आयकर अपीलीय अिधकरण,च�डीगढ़ �यायपीठ,च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘B’, CHANDIGARH BEFORE SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER & SHRI PARESH M. JOSHI, JUDICIAL MEMBER आयकरअपीलसं./ITA No.776/CHD/2023 िनधा�रणवष� / Assessment Year:2022-23 Vs. The CIT, Women Sports बनाम Exemption, Foundation, Chandigarh KBC-4 Chd City Sector 45, Karnal, Haryana �थायीलेखासं./PAN No: AAAAW3913F अपीलाथ�/APPELLANT ��यथ�/REPSONDENT ( Virtual Hearing ) िनधा�रतीक�ओरसे/Assessee by : None राज�वक�ओरसे/ Revenue by : Smt. Kusum Bansal, CIT DR सुनवाईक�तारीख/Date of Hearing : 05.08.2024 उदघोषणाक�तारीख/Date of Pronouncement : 12 .08.2024 आदेश/Order PerParesh M. Joshi, JM :

This is an appeal filed before the Tribunal under section 253 of the Income Tax Act, 1961. The Assessee is aggrieved by Order No. ITBA/EXM/F/EXM<45/2022-23/1045808971(1) dated 22.09.2022 of ld. CIT (E) Chandigarh which is hereinafter referred as the “Impugned order”. Factual Matrix 2. The Assessee made an application for registration u/s 12A(1)(ac) (iii) of the Act on 31.03.22.

776-Chd-2023 Women Sports Foundation, Karnal 2 3. In order to examine and verify the objects of the Trustor the institution, the genuineness of its activities and compliance with such requirements of any other law for the time being in force as are material for the purpose of achieving its objects, a questionnaire was issued electronically on 18.08.2022 requesting the applicant to furnish the certain documents /details online through e-proceedings on e-filling portal along with the supporting documents/evidence, point wise in the sequence by 29.08.2022.

4.

On the stipulated dateneither any submission was made nor was any request for adjournment or other communication received from the applicant through any channel. Another letter granting necessary opportunity was issued to the applicant on 30.08.2022 and the matter was fixed for reply by 07.09.2022. On this date, likewise, neither any online/offline reply was submitted nor was any request for adjournment or other communication received from the applicant. In the interests of natural justice, final opportunity was then accorded to the applicant on 10.09.2022 and the matter was fixed for 14.09.2022. However once again, no reply has been furnished in the case nor any communication received from the applicant through any channel even till the date of passing of this order. Given the non- compliances on the aforesaid occasions afforded to the applicant, it becomes evident that the applicant is not interested in pursuing the 776-Chd-2023 Women Sports Foundation, Karnal 3 matter. In the absence of submissions regarding the activities, it is difficult to verify both the nature of objects & genuineness of activities of the applicant. It can safely be concluded that the queries raised could not be answered satisfactorily by the applicant.

5.

As per Impugned order Serial No.10, date of opportunity afforded to the applicant before such rejection or cancellation of application for registration / approval were 18/08/2022, 30/08/2022 and 10/09/2022.

6.

No body appeared on above dates supra before CIT(E) nor any material information which were sought – vide para 2(1) to (10) of the impugned order were given to ld. CIT(E).

7.

Consequently, in the impugned order the ld. CIT(E) has held as under:

“In view of the above discussions, the present application of the assessee filed in Form 10AB u/s 12A(1 )(ac)(iii) of the Act is disposed of as being deficient in factual evidences in the absence of the requisite submissions and appearances of the assessee at the scheduled hearings. This is despite the granting of at least three opportunities as above. It is pertinent to mention here that it is mandated by the provisions of Section 12A(1 )(ac)(iii) of the Act that where the trust or institution has been provisionally registered u/s 12AB it has to make an application for registration u/s 12AB within six months of commencement of activities. In the absence of any submission from the applicant it is not possible to ascertain the objects and activities carried out by the applicant. Accordingly the application filed by the 776-Chd-2023 Women Sports Foundation, Karnal 4 applicant for registration u/s 12AB of the Act is hereby rejected, which rejection and consequent lack of registration will apply from this F.Y. 2022-23 onwards and also supersede any registration granted u/s 12AB or 12AA of the Act by any authority at any earlier time.”

8.

The Assessee being aggrieved by the Impugned order has in Form 36 which is a Form of appeal to this Tribunal has raised following Grounds of appeal :-

1. That the order passed by the learned CIT(Exemption is illegal, arbitrary has been passed in haste and has ignored basic aspects and facts of the case, thus, causing undue hardship to the appellant.

2.

That the Learned officer has cancelled the application of Final Registration u/s 12 AB of Income Tax Act without giving proper opportunity of Being Heard.

3.

That the Learned officer has neither send any notice in physical copy nor any e-mail & order has been passed by learned officer without giving proper opportunity of being heard. Since no communication is received from learned officer therefore assessee is not aware of any notice issued by the learned officer.

4. That the assessee had requested to accept the appeal and condone the delay in filling the appeal because neither any communication of order copy has been send by Learned Officer over the email nor any hard copy of order Sent. So assessee is not aware about the order issued by the learned officer.

776-Chd-2023 Women Sports Foundation, Karnal 5 5. That the appellant craves to add. delete, concede, and modify any or all the grounds of appeal at the time of hearing of appeal

Record of Hearing 9. On 05/08/2024 the hearing before us took place on virtual mode. Initially none appeared for Assessee. We perused the records very minutely and formed a prima facie view at that stage that the Impugned order is Ex-parte in nature. We then querred the ld. DR as to what she feels for the Impugned order in so far as Principles of Natural Justice is concerned. She replied that Impugned order is Ex- parte. Matter be appropriately be remanded back to the file of ld. CIT(E). However, little later the AR appeared and contended that No opportunity has been given before Impugned order came to be passed and prayed for remand of the case. . Findings &Conclusions 10. Delay condones as sufficient cause shown. We hold that the Impugned order is Ex-parte as no effective opportunity was provided to the Assessee. It is in the violation of the Principles of Natural Justice. Order 11. After considering the facts and circumstances of the case, we set aside the Impugned order and remand the case on de novo basis back to the file of CIT(E). We direct Assessee to fully cooperate with the 776-Chd-2023 Women Sports Foundation, Karnal 6 Department and provide all the necessary material particulars to them as sought, participate in hearing and quickly ensure that a suitable order is passed afresh. We direct CIT(E) to dispose off the present proceeding a fresh on de novo basis as expeditiously as possible preferably within 30 days from the date of receipt of this order. Accordingly, appeal of the Assessee is allowed as and by way of remand.

12.

In the result, appeal of the assessee is allowed for statistical purpose.

Order pronounced on 12.08.2024.

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