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Income Tax Appellate Tribunal, CHANDIGARH
Before: SHRI A.D.JAIN & SHRI VIKRAM SINGH YADAV
आदेश/ORDER
PER A.D.JAIN, VICE PRESIDENT
These are assessee's appeals for assessment years 2021-22 and 2024-25 against the orders of the CIT (Exemptions) Chandigarh dated 21.01.2023 and 30.01.2023 respectively.
ITA 808/CHD/2023
The following grounds have been raised :
ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 2 a) That the Order dated 21.01.2023 passed in Form No. 10AD rejecting the application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, *361 by the respondent is bad in law inasmuch as the same is passed in complete breach of principles of natural justice and settled principles of law governing the exercise of a quasi - judicial powers of the respondent in deciding the application for registration under Section 12ABofthe Income Tax Act, 1961. b) That the respondent i.e., Commissioner of Income Tax (Exemptions), Chandigarh erred in law as well as on facts in rejecting the application seeking final approval/registration for the assessment years 2021-22 to 2023-24 [in terms of Section 12A(1)(ac)(iii)] under Section 12AB of the Income Tax Act, 1961 without appreciating facts and law governing the present case properly. c) That the Order dated 21.01.2023 passed in Form No. 10AD rejecting the application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 by the respondent is illegal and arbitrary as the same is passed in violation of settled principle of right to notice, so that same be met by the appellant. d) That the judgments relied by the respondent in the impugned Order dated 21.01.2023 are not applicable to the factual matrix of the present case as neither any message of communication via SMS and/or WhatsApp nor any email(s) containing the hearing notices dated 10.11.2022, 12.12.2022, 28.12.2022 nor any communication via email or message regarding uploading of aforesaid notices of hearing on the income tax portal for deciding the application for registration was received by the appellant. e) That the Order dated 21.01.2023 passed in Form No.10AD rejecting the application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 by the respondent is bad in law inasmuch as the application of final approval/registration was not heard on merits, rejection on the solitary reason of absence of the requisite submissions of the appellant in response to the purported letters dated 10.11.2022, 12.12.2022, 28.12.2022 of hearing which was not received by the appellant is wholly illegal and arbitrary. f) That the Order dated 21.01.2023 passed in Form No. 10AD rejecting the application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961 by the respondent is not tenable in law and on the facts and in the circumstances of the case as the aforesaid notices dated 10.11.2022, 12.12.2022, 28.12.2022 of hearing were not served upon the appellant in terms of Section 282 of the Income Tax Act, 1961. g) That since the whole proceedings from the very onset are vitiated and suffers from the principles of natural justice, the matter deserve to remanded back for de novo hearing on merits and providing opportunity of hearing to the appellant.
At the outset, it is noted that there is a delay of 272 days in filing the appeal before this Tribunal against the ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 3 order passed by the Commissioner of Income Tax (Exemptions) Chandigarh [in short ‘the ld.CIT(E)] dated 21.01.2023. The assessee has filed an application dated 28.12.2023 for condonation of delay and an affidavit of Shri Puneet Goyal, Director of the assessee company has also been filed explaining the reasons for occurring delay in filing the appeal before this Tribunal. The assessee has stated that he had not received certified copy of the order dated 21.01.2023 passed by the ld. CIT (Exemptions) and was unaware about the issuance of letters/notices for hearing as the same was not served. The assessee came to know about the impugned order dated 21.01.2023 only when the Chartered Accountant of the assessee logged into the Income Tax account of the assessee for filing fresh renewal of registration u/s 12AB of the Act for the succeeding assessment years on 24.11.2023. Thereafter, the assessee applied for the certified copy of the impugned order vide letter dated 04.12.2023. However, the said letter was not accepted for the reason that the original order had already been uploaded on the e-portal. The ld. Counsel for the assessee submitted that the aforesaid delay of 272 days in filing the appeal was unintentional and requested that the ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 4 aforesaid delay in filing appeal be condoned, in the interest of justice as there exists sufficient cause in not filing the appeal within the prescribed period of limitation.
The ld. DR did not raise any specific objection.
In view of the submissions made by both the parties, we are satisfied that there was sufficient and reasonable cause for the assessee in not filing the appeal in time.
Accordingly, the delay is hereby condoned and appeal of the assessee is admitted for adjudication.
The facts of the case are that an application for registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 was filed by the assessee Trust on 28.09.2022. In order to examine and verify the objects of the Trust/Foundation, the genuineness of its activities and compliance with such requirements of any other law in force, the ld. CIT(Exemptions) issued a questionnaire electronically on 10.11.2022 requesting the assessee to furnish the relevant documents/details online through e-proceedings on e-filing portal alongwith supporting documents/evidences etc. by 25.11.2022. On the stipulated date, neither any submission was made nor any request for adjournment or other
ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 5 communication was filed by the assessee through any channel. The ld. CIT (E) issued another letter on 12.12.2022 fixing the date of hearing for filing requisite information/documents etc. on 21.12.2022. On this date also, no online/offline reply was submitted by the assessee.
The ld. CIT (E) provided final opportunity to the assessee on 28.12.2022 and fixed the matter for 04.01.2023. However, again no reply was furnished by the assessee through any channel. Accordingly, considering the facts and circumstances, the ld. CIT (Exemptions) rejected the appeal of the assessee filed for registration u/s 12AB of the Act.
Aggrieved, the assessee is in appeal before this Tribunal.
The ld. DR could not rebut the aforesaid factual position.
We have heard the rival submissions and have perused the material available on record. The notices were uploaded on the e-portal of the assessee but the assessee states that he did not receive any notice of hearing. Further, there is nothing on record to prove that the assessee has been served proper notice of hearing to furnish the relevant information/documents etc. Merely uploading of information about the date of hearing on the Income Tax Portal is not an ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 6 effective service of notice as per the provisions of Section 282 of the Income Tax Act. 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 an pragmatic view has 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.
ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 7 8.1 Accordingly, considering the facts and circumstances and in the interest of justice, the file is restored to the file of ld. CIT(E) to decide the matter afresh in accordance with law after giving reasonable opportunity of being heard to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the ld. CIT(E).
In the result, the appeal of the assessee in is allowed for statistical purposes.
ITA 809/CHD/2023
The following grounds have been raised :
a) That the Order dated 30.01.2023 passed in Form No. 10AD rejecting the application for registration under Clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 by the respondent is bad in law inasmuch as the same is passed in complete breach of principles of natural justice. b) That rejection of the application for registration under Clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 by the respondent is bad in law inasmuch as the application seeking final approval/registration for the assessment years 2021-22 to 2023-24 [in terms of Section 12A(1)(ac)(iii)] under Section 12AB of the Income Tax Act, 1961 was rejected vide Order dated 21.01.2023 in violation of principles of natural justice as no notice of hearing was served in terms of Section 282 of the Income Tax Act, 1961. c) That the Order dated 30.01.2023 passed in Form No. 10AD rejecting the application for registration under Clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 by the respondent is illegal and arbitrary as the same is passed in violation of settled principle of right to notice, so that same be met by the appellant. d) That the Order dated 30.01.2023 passed in Form No. 10AD rejecting the application for registration under Clause (iv) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961 by the in law inasmuch as the application of final approval/registration for the assessment years 2021-22 to ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 8 2023-24 [in terms of Section 12A(1)(ac)(iii)] under Section 12AB of the Income Tax Act, 1961 was not heard on merits, rejection on the solitary reason of absence of the requisite submissions of the appellant in response to the purported letters dated 10.11.2022, 12.12.2022, 28.12.2022 of hearing which was not received by the appellant is wholly illegal and arbitrary. e) That since the whole proceedings from the very onset are vitiated and suffers from the principles of natural justice, the matter deserve to remanded back for de novo hearing on merits and providing opportunity of hearing to the appellant.
In this appeal also, there is a delay of 263 days in filing the appeal before this Tribunal against the order passed by the Commissioner of Income Tax (Exemptions) Chandigarh dated 30.01.2023. The assessee has filed an application dated 28.12.2023 for condonation of delay and an affidavit of Shri Puneet Goyal, Director of the assessee company explaining the reasons for occurring delay in filing the appeal before this Tribunal has also been filed. The assessee has stated that he had not received certified copy of the impugned order dated 30.01.2023 passed by the ld. CIT (Exemptions). In the main case for registration u/s 12AB of the Act which was rejected vide order dated 21.01.2023, the assessee was unaware about the issuance of letters/notices for hearing as the same was not served. The assessee came to know about the impugned order dated 30.01.2023 passed in Form No. 10AD as well as order dated 21.01.2023 only when the Chartered Accountant of the assessee logged into the Income Tax account of the assessee for filing fresh
ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 9 renewal of registration u/s 12AB of the Act for the succeeding assessment years on 24.11.2023. Thereafter, the assessee applied for the certified copy of the impugned order vide letter dated 04.12.2023. However, the said letter was not accepted for the reason that the original order had already been uploaded on the e-portal. The ld. Counsel for the assessee submitted that the aforesaid delay of 263 days in filing the appeal was unintentional and requested that the aforesaid delay in filing appeal be condoned, in the interest of justice as there exists sufficient cause in not filing the appeal within the prescribed period of limitation.
The ld. DR did not raise any specific objection.
In view of the submissions made by both the parties, we are satisfied that there was sufficient and reasonable cause for the assessee in not filing the appeal in time.
Accordingly, the delay is hereby condoned and appeal of the assessee is admitted for adjudication.
Since the matter regarding grant of registration u/s 12A of the Act in the assessee's case, in ITA 808/CHD/2023 has been remanded by us to the file of the ld. CIT (E), as above, for similar reasons, the matter constituting the subject matter of ITA
ITA 808 & 809/CHD/2023 A.Y.2021-22 & 2024-25 10 809/CHD/2023 is also remanded to the file of the ld. CIT (E), to be decided afresh in accordance with law after giving reasonable opportunity of being heard to the assessee. This appeal of the assessee is also allowed for statistical purposes.
In the result, both appeals of the assessee are allowed for statistical purposes.
Order pronounced on 02.04.2024.