Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM
िनधा�रती क� ओर से /Assessee by : Sh. Sunil Kumar Agrawal, CA राज�व क� ओर से /Revenue by : Dr. Simran Bhullar, CIT(DR) सुनवाई क� तार�ख / Date of Hearing : 18.07.2023 घोषणा क� तार�ख/Date of Pronouncement : 18.07.2023 आदेश / O R D E R
Per Arun Khodpia, AM :
The present appeal by the assessee is directed against the order of Commissioner of Income Tax (Exemption), Bhopal, dated 10th February, 2021, pertaining to assessment year 2020-21. The following grounds are raised by the assessee:
1. The order of the Commissioner of Income Tax (Exemption) is devoid of natural justice as no proper opportunity was allowed to the institution for making requisite compliances. The order of rejection is, therefore, illegal and void ab initio should be quashed.
2. Without prejudice to the above ground the Commissioner has travelled beyond his jurisdiction as envisaged under Section 12AA of the Income Tax Act. The institution is existing solely for the purpose of education and is purely a charitable organization entitled for registration under Section 12A of the Income Tax Act. The denial of registration on flimsy grounds is unjustified. The Commissioner of Income Tax (Exemption) may please be directed to grant exemption under section 12A.
3. Without prejudice to the above NO ground the appellant society was prevented in making timely compliance due to COVID-19 pandemic and in view of this typical situation the order of Commissioner of Income Tax (Exemption) should be quashed and the Commissioner be directed to decide the application for registration after affording proper and reasonable opportunity.
Without prejudice to the above ground the jurisdiction of Commissioner of Income Tax (Exemption) is limited in Section 12AA and the society being a purely charitable organization the registration may kindly be allowed. 2. Briefly stated, the assessee society is registered under M.P. Society Registration Act, 1973 on 5th June, 2010 under the name of Chhattisgarh Diocese Board of Education CNI. The assessee has filed an application for grant of registration under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) in the prescribed Form No. 10A on 20th January, 2020 before the CIT(E), Bhopal. Learned CIT(E), Bhopal, had issued a notice on 28.05.2020 to the assessee society to ascertain the genuineness of the objects and activities of the society. Subsequently, another notice was issued on 10.06.2020. A part compliance to the said notices were made by the assessee. However, the details, as required by the learned CIT(E) issuing a questionnaire pertaining to section 12AA of the Act read with Rule 17A of the Income Tax Rules, 1962 (in short ‘the Rules’), was not submitted by the assessee. The assessee failed to submit the evidence of tax payment on its tax liability for the financial years 2016-17, 2017-18 and 2018-19. Therefore, the learned CIT(E) has doubted on the correctness of books of account for the financial year 2016-17 to financial year 2018-19, which is to be ascertained as mandated under Rule 17A(e) of the Rules and provision of section 12AA of the Act. Another opportunity vide letter dated 28.01.2021 was afforded to the assessee, however, again the assessee society failed to make any compliance. Learned CIT(E), therefore, has refused to grant registration under section 12AA of the Act mentioning the reason that the application