M/S AGGARSAIN PUBLIC EDUCATIONAL SOCIETY,PATIALA vs. CIT(EXEMPTIONS), CHANDIGARH

PER A.D.JAIN, VICE PRESIDENT

These are assessee's appeals for assessment year

2022-23 against the separate orders dated 27.09.2022 and

18.01.2023 respectively passed by the ld. Commissioner of

Income Tax (Exemptions) Chandigarh [in short ‘the

CIT(E)’].

in both these appeals, therefore, these were heard together

ITA 567&568/CHD/2023 A.Y.2022-23 2 and are being disposed of by a common order for the sake

of brevity. The facts and issues are taken from ITA

No.567/CHD/2023. In this appeal, the assessee has

raised the following grounds of appeal:

application for approval of the registration of the Trust

under clause (iii) of first provision to Section 80G(5) of the

Income Tax Act, 1961 on 29.03.2022. A questionnaire was

issued to the assessee electronically by the ld. CIT (E) on

15.09.2022 requesting the assessee to furnish relevant

supporting documents, details and evidence etc., through

e-proceedings on e-filing portal by 20.09.2022. On the

stipulated date, neither any submissions/evidence etc.

was filed nor any request for adjournment was made

through any channel. Therefore, another opportunity was

provided on 21.09.2022 and the case was fixed for

ITA 567&568/CHD/2023 A.Y.2022-23 3 23.09.2022. On that date also, neither any online/offline

reply was submitted nor any request for adjournment was

received. As a final opportunity, the case was fixed for

26.09.2022, but, on that date also, position remained the

same. Accordingly, the ld. CIT(E) rejected the application

filed by the assessee considering it to be deficient in

factual evidences and on account of non-appearance on

the date of hearings. The relevant part of the order of the

ld. CIT (E) is as under :

“In view of the above discussions, the present application of the assessee filed in Form 10AB under clause (iii) of first proviso to section 80G(5) 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 under clause (iii) of first proviso to section 80G(5) of the Act that where the trust or institution has been provisionally approval u/s 80G it has to make an application for approval u/s 80G 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 applicant for approval u/s 80G 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 approval granted u/s 80G of the Act by any authority at any earlier time.

Tribunal.

ITA 567&568/CHD/2023 A.Y.2022-23 4 5. We have heard the parties and have perused the

material on record. On perusal of the record, it is noticed

that the impugned order passed by the ld. CIT (E) is an ex-

parte order. The notices were issued electronically to the

assessee. The ld. Counsel for the assessee has contended

that no notice for hearing on e-mail or physically was ever

served on the assessee. Further, there is nothing on

record to show that the assessee was issued proper notice

of hearing. The matter now stands covered by the

decision of the Hon'ble jurisdictional High Court in the

case of ‘Munjal BSU Centre of Innovation and

Entrepreneurship, Ludhiana through its authorized

signatory Shri Bharat Goyal Vs Commissioner of Income

Tax (E), Chandigarh’, in CWP 21028-2023 (O&M), wherein,

vide order dated 04.03.2024, their Lordships have held

that the provisions of Section 282(1) of the Income Tax Act

and Rule 127(1) of the Income Tax Rules, 1962, envisage

that it is essential that before any action is taken, a

communication of the notice must be in terms of these

provisions; that these provisions do not make mention of

communication to be “deemed” by placing the notice on

the e-portal of the Department; that a pragmatic view has

ITA 567&568/CHD/2023 A.Y.2022-23 5 always to be adopted in these circumstances; that an

individual or a company is not expected to keep the e-

portal of the Department open all the times so as to have

knowledge of what the Department is supposed to be doing

with regard to the submissions of forms, etc.; and that the

principles of natural justice are inherent in the Income

Tax provisions and the same are required to be necessarily

followed.

impugned order of the ld.CIT(E) is set aside and the matter

is restored to the file of the CIT(E) to decide the

application of the assessee for final approval of

registration on merits after giving adequate opportunity to

the assessee to present its case. The assessee, no doubt,

shall cooperate in the fresh proceedings before the ld. CIT

(E).

statistical purposes.

568/CHD/2023 are identical to ITA 567/CHD/2023,

therefore, our findings given in ITA 567/CHD/2023 would

ITA 567&568/CHD/2023 A.Y.2022-23 6 apply mutatis-mutandis to ITA 568/CHD/2023 also.

Accordingly, ITA 568/CHD/2022 is also allowed for

statistical purposes.

allowed for statistical purposes.

Order pronounced on 16.05.2024.

Sd/- Sd/-

(KRINWANT SAHAY) (A.D.JAIN ) VICE PRESIDENT ACCOUNTANT MEMBER “Poonam”

आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�/ CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar