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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 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.