RAM SWAROOP MEMORIAL CHARITABLE TRUST,BAREILLY vs. C.I.T. (E), LUCKNOW
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Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW
Before: SHRI ANADEE NATH MISSHRA & SHRI SUBHASH MALGURIA
PER ANADEE NATH MISSHRA, A.M.
(A) This appeal has been filed by the assessee against the impugned order (DIN & Order No.ITBA/COM/F/17/2020-21/1029985112(1) dated 21/01/2021 of learned CIT (Exemptions) whereby the assessee’s application for approval u/s 80G of the Income Tax Act, 1961 (“IT Act” for short) was rejected. Although several grounds of appeal have been raised in the present appeal, in essence they all relate to the issue regarding denial of approval u/s 80G of the IT Act, vide aforesaid order dated 21/01/2021. In the course of appellate proceedings in the Income Tax Appellate Tribunal, a paper book containing the following particulars was filed from the assessee’s side:
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Copy of order u/s 12AA of the IT Act dated 14.09.2006, passed by CIT, Bareilly granting registration with effect from 22.07.2006 2. Copy of show cause notice dated 12.10.2020 issued by CIT(Exemption), Lucknow for proceedings u/s 12AA(3) for cancellation of Registration u/s 12AA.
Copy of show cause notice dated 25.11.2020 issued by CIT(Exemption), Lucknow for proceedings u/s 12AA(3) for cancellation of Registration u/s 12AA.
Copy of reply dated 04.12.2020 sent through speed post on 04.12.2020 in reply to show cause notice dated 25.11.2020
Copy of assessment order dated 27.03.2015 for A.Y. 2007- 8passed under section 144/147 of the Income Tax Act, 1961 by Income Tax Officer (Exemption), Bareilly.
Copy of order dated 28.09.2018 passed by Hon'ble Income Tax Appellate Tribunal, Lucknow Bench 'A' in the case of Ram Swaroop Memorial Charitable Trust vs. Income Tax Officer (Exemption), Bareilly in ITA No. 01/ LKW/2017 (assessee's own case), whereby the assessment was restored to the Assessing for passing assessment order afresh.
Copy of assessment order dated 09/12/2019 passed under section 144/147/254 of the IT Act by Income Tax Officer (Exemption) Bareilly
Copy of Form No. 35 filed on 21/01/2020 in respect of appeal filed against assessment order dated 09/12/2019.
Sworn affidavit dated 16/06/2024 executed by Shri Anil Rathore, the trustee of the assessee.
Copy of order dated 20/06/2024 passed by Hon'ble Income Tax Appellate Tribunal ‘B’ Bench Lucknow in I.T.A. No.33/Lkw/2021 in assessee’s own case relating to cancellation of registration u/s 12AA of the IT Act.
(B) At the time of hearing before us, the learned A.R. for the appellant submitted that the assessee’s application for approval u/s 80G of the IT Act
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was declined by the learned CIT (Exemptions) in the aforesaid impugned order dated 21/01/2021 on the ground that assessee’s registration u/s 12AA of the IT Act was cancelled by learned CIT (Exemptions) vide separate order [(DIN & Order No.ITBA/COM/F/17/2020-21/1029978938(1)] dated 21/02/2021 passed earlier. He further submitted that the assessee’s appeal against aforesaid order dated 21/01/2021 of learned CIT (Exemptions) was decided by Coordinate Bench of ITAT, Lucknow in order dated 20/06/2024 (I.T.A. No.33/Lkw/2021) whereby the issue regarding registration u/s 12AA was set aside and remanded back to learned CIT (Exemptions) with the direction to deal with the matter de novo in accordance with law. He contended that, the issue regarding approval u/s 80G, which is the subject matter of the present appeal, should also be set aside to the learned CIT (Exemptions) with the direction to pass de novo order in accordance with law, after providing reasonable opportunity to the appellant. In this regard he contended that the learned CIT (Exemptions) did not provide reasonable opportunity before rejecting assessee’s application for approval u/s 80G of the IT Act. In support of this contention, he drew our attention to affidavit dated 16/06/2024 deposed by Khoob Chand Rathore, a trustee of the appellant trust. Relevant portion of the aforesaid affidavit is reproduced below:
“1. That the deponent is the trustee of Ram Swaroop Memorial Charitable Trust and as such he is fully conversant with the matter deposed hereinafter.
That the notice dated 12.10.2020 issued by Hon'ble Commissioner of Income- tax (Exemption), Lucknow, referred in CIT (Exemption) order dated 21.01.2021 fixing date of compliance on 27.10.2020, was not received by the assessee.
That the registered mail ID of the assessee was created and operated by the erstwhile employee, (Mr. Sompal), who had left the job in FY 2018-19 and did not intimate the ID and password
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of that mail and also did not intimate the assessee about the notice dated 12.10.2020, if received by him on the e-mail.
That the notice dated 19.11.2020 stated to have been issued by Hon'ble Commissioner of Income-tax (Exemption), Lucknow, referred in CIT (Exemption) order dated 21.01.2021 fixing date of compliance on 08.12.2020, was not received by assessee. That the said notice is also not reflecting in the e-proceedings account.
That the notice dated 25.11.2020 issued by Hon'ble Commissioner of Income- tax (Exemption), Lucknow fixing compliance on 08.12.2020 came to the knowledge of the assessee when for some other activity assessee logged in to his income tax portal account and found the notice. Thereafter, the same was duly replied and reply was sent to Hon'ble Commissioner of Income-tax (Exemption), Lucknow via speed post No. EU3295741281N on 04/12/2020.”
(B.1) The learned CIT (D.R.) for Revenue did not express any objection to the request made by learned A.R. for the appellant seeking that the issue regarding approval u/s 80G of the Act be restored back to the learned CIT (Exemptions) with the direction to pass de novo order in accordance with law after providing reasonable opportunity to the appellant.
(B.2) We have heard both sides and perused materials on record. Relevant facts are not in dispute. The learned CIT (Exemptions) cancelled assessee’s registration u/s 12AA of the IT Act vide aforesaid order dated 21/01/2021 by necessary implication the charitable nature of the appellant trust was disbelieved. For approval u/s 80G of the IT Act, the charitable nature of the applicant is a prerequisite. As the charitable nature of the appellant trust was disbelieved by aforesaid order dated 21/01/2021 cancelling assessee’s registration u/s 12AA of the Act, the assessee’s approval u/s 80G of the IT Act was also declined by the learned CIT (Exemptions) vide aforesaid impugned order.
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(B.2.1) Presently, as the things stand now, the aforesaid order dated 21/01/2021 of learned CIT (Exemptions) cancelling assessee’s registration u/s 12AA of the IT Act has been set aside and remanded back to the file of the learned CIT (Exemptions) vide aforesaid order dated 20/06/2024 of Coordinate Bench of the ITAT, Lucknow in I.T.A. No.33/Lkw/2021. In the fitness of things, therefore, as a logical consequence in the specific facts and circumstances of the present appeal before us and also as representatives of both sides are in agreement with this; the issue regarding approval u/s 80G of the IT Act is also set aside and restored back to the file of the learned CIT (Exemptions) with the direction to pass de novo order in accordance with law after providing reasonable opportunity to the appellant.
(D) In the result, the appeal is partly allowed for statistical purposes.
(Order pronounced in the open court on 09/10/2024)
Sd/. Sd/. (SUBHASH MALGURIA) (ANADEE NATH MISSHRA) Judicial Member Accountant Member
Dated:09/10/2024 *Singh
Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. The CIT(A) 5. D.R., I.T.A.T., Lucknow Asstt. Registrar
