GOODRICH FOUNDATION,KARNAL vs. CIT (EXEMPTIONS), CHANDIGARH
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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
Both these appeals have been filed by the assessee for
assessment year 2023-24 against the separate orders dated
16.03.2023 and 22.03.2023 passed by the ld.
CIT(Exemptions) Chandigarh.
As similar facts and circumstances are involved in both
these appeals, therefore, both appeals were heard together
ITA 298 & 299/CHD/2023 A.Y.2023-24 Page 2 of 5 and are being disposed of by this common order by taking
the facts and circumstances of ITA No. 298/CHD/2023. The
assessee has raised the follow grounds of appeal :
Because the action is under challenge on facts & law since the findings recorded qua rejection of registration u/s 12A(l)(ac)(iii) of the Act is in violation to the principles of natural & substantial justice for a decision in accordance with law. 2. Because the action is under challenge on facts and law while there is misapplication of jurisdiction u/s 12A(l)(ac)(iii) of the Act while rejecting the prayer for granting of exemption. 3. Because the action is being challenged on facts and law for having declined the granting of the registration u/s 12AB(l)(b)(ii) read with section 12A(l)(ac)(iii) of the Act which action is perverse, overlooking & ignoring the facts, material on record, principles of law, provisions of act, original Trust deed and even further in patent violation of principles of justice.
The facts of the case are that the assessee Trust filed an
application for registration u/s 12A(1)(ac)(iii) of the Income
Tax Act, 1961 on 28.10.2022. In order to examine and verify
the objects of the Trust, genuineness of its activities etc., a
questionnaire was issued electronically on 22.11.2022 for
furnishing certain supporting documents/evidence by
07.12.2022. On the stipulated date, neither any submission
was made nor was any request for
adjournment/communication was received from the
applicant through any channel. Thereafter, another letter
was issued to the assessee on 23.02.2023 to file reply by
01.03.2023. But on that date also, neither any online/offline
ITA 298 & 299/CHD/2023 A.Y.2023-24 Page 3 of 5 reply was filed nor any request for adjournment was
received. Accordingly, the ld. CIT(Exemptions) rejected the
application of the assessee for registration u/s 12AB of the
Act.
Aggrieved,the assessee is in appeal before this Tribunal.
We have heard the parties and have perused the
material on record. The ld. Counsel for the assessee
submitted that the ld. CIT(Exemptions) has dismissed the
appeal of the assessee overlooking and ignoring the facts,
material on record and without providing proper and
reasonable opportunity of being heard to the assessee. We
have found that the notices were issued electronically. 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
ITA 298 & 299/CHD/2023 A.Y.2023-24 Page 4 of 5 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.
In the facts and circumstances of the case, we are of
the considered opinion that the assessee was not afforded
proper and reasonable opportunity of being heard.
Therefore, in the interest of justice, the file is restored to
the file of ld. CIT(Exemptions) to decide the matter afresh
in accordance with law after giving a reasonable
opportunity of being heard to the assessee. The assessee,
no doubt, shall cooperate in the fresh proceedings before
the CIT(Exemptions).
In the result, the appeal of the assessee is allowed for
statistical purposes.
ITA 298 & 299/CHD/2023 A.Y.2023-24 Page 5 of 5 8. As the facts and circumstances in ITA No.
299/CHD/2023 are similar to ITA No.298/CHD/2023,
therefore, our findings in ITA 298/CHD/2023 would apply
mutatis-mutandis to ITA No.299/CHD/2023 also.
Accordingly, this appeal of the assessee is also allowed for
statistical purposes.
In the result, the appeals of the assessee are allowed for
statistical purposes.
Order pronounced on 13th March,2024.
Sd/- Sd/-
(VIKRAM SINGH YADAV) (A.D.JAIN ) ACCOUNTANTMEMBER VICE PRESIDENT “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
