PARIVARTHAN,KAKINADA vs. INCOME TAX OFFICER (EXEMPTION WARD), RAJAHMUNDRY
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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
PER DUVVURU RL REDDY, Judicial Member :
Both the captioned appeals are filed by the assessee against the orders of the Ld. CIT(Exemptions), Hyderabad vide DIN & Notice No. ITBA/EXM/F/EXM45/2022-23/1050957403(1), dated 19/03/ 2023 and ITBA/EXM/F/EXM45/2022-23/1050957267(1) dated 19/03/2023 [ITA No. 154 & 155/Viz/2023 respectively].
2 Since the assessee has raised identical grounds of appeal /
similar issues in both the appeals, these appeals are clubbed,
heard together and disposed off in this consolidated order.
Brief facts relevant to the ITA No.154/Viz/2023 are that
the assessee has filed an e-application in Form No.10AB seeking
registration U/s. 80G(5) of the Income Tax Act, 1961 [the Act]
before the Ld. CIT(Exemptions), Hyderabad. Thereafter, notices
dated 8/12/2022 & 6/1/2023 were issued to the assessee in
respect of the proceedings U/s. 12A(ac)(iii) to produce the copy of
Memorandum of Association / Trust Deed for verification. In
response, according to the Ld. CIT(E), the assessee has submitted
partial information and on verification of the information
furnished by the assessee, the Ld. CIT(E) called for some other
relevant information vide notice dated 27/2/2023. In reply, the
assessee submitted that the information called for by the Ld.
Revenue Authorities was already furnished by the assessee in
their earlier correspondences and the same may be treated as full
and complete response. Thereafter, the Ld. CIT(E) issued a show
cause letter dated 13/3/2023 and the assessee was asked to
submit the information mentioned therein. It was also mentioned
in the show cause letter that the assessee has to reply in writing
3 to the said show cause letter on or before 17/3/2023. However,
since the assessee has not filed any information or documentary
evidence as called for by the Ld. CIT(E), the assessee’s
application for registration in Form No. 10AB seeking registration
U/s. 12AB was rejected by the Ld. CIT(E) vide his order dated
19.03.2023. Aggrieved by the order of the Ld. CIT(E), Hyderabad,
the assessee filed the present appeal before the Tribunal by
raising the following grounds of appeal:
“1. The order of the Ld. CIT (E), Hyderabad is contrary to the facts and also the law applicable to the facts of the case.
The Ld. CIT(E) is not justified in rejecting the application filed by appellant in Form No. 10AB for approval U/s. 80G of the Act.
Any other ground that may be urged at the time of appeal hearing.”
At the outset, the Ld. AR submitted before us that the Ld. CIT (E)
has passed ex-parte order without providing proper opportunity to the
assessee of being heard. It was therefore pleaded that the matter may be
remitted back to the file of the Ld CIT (E) in order to provide one more
opportunity to the assessee of being heard. Ld. DR, on the other hand,
vehemently opposed to the submissions of the Ld. AR and argued that
sufficient opportunities had been provided to the assessee however, on
4 the given dates of hearing, neither the assessee nor its Representative
filed any information / documentary evidence as called for by the Ld.
CIT(E). It was further submitted that the Ld. CIT (E) had no other option
but to pass ex-parte order based on the materials available on record.
Hence, it was pleaded that the order passed by the Ld. CIT(E) does not
call for any interference.
We have heard the rival submissions and carefully perused the
materials on record. On examining the facts of the case, we find that the
Ld. CIT (E) had posted the case on four occasions. However, there was
no response on behalf of the assessee before the Ld. CIT(E) on the given
dates of hearing. Therefore, the Ld. CIT (E) was left with no other option
except to adjudicate the appeal ex-parte. On perusal of the Ld. CIT(E)’s
order, we have observed and find it relevant to mention here that the Ld.
CIT(E) has issued the show cause notice on 13/3/2023 and requested
the assessee to furnish the information on or before 17/3/2023 which
shows that there is hardly 4 days for the assessee to furnish the
information before the Ld. CIT(Exemptions). It is also pertinent to
mention that the Ld. CIT(E) has passed the order on 19/03/2023. In our
considered opinion, following the principles of natural justice, the Ld.
CIT(E) ought to have given sufficient time or one more opportunity to the
assessee to furnish the information as required by the Ld. Revenue
5 Authorities. In this situation, we find strength in the arguments
advanced by the ld. AR. Therefore, considering the prayer of the Ld. AR,
strictly following the principles of natural justice and in the interest of
justice, we hereby remit the matter back to the file of Ld. CIT (E) in order
to consider the appeal afresh on merits by providing one more
opportunity to the assessee of being heard. At the same breath, we also
hereby caution the assessee to promptly co-operate before the Ld. CIT (E)
in the proceedings failing which the Ld. CIT (E) shall be at liberty to pass
appropriate order in accordance with law and merits based on the
materials on the record. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical
purposes as indicated hereinabove.
With respect to ITA No. 155/Viz/2023, since the assessee has
raised the identical grounds and the issues raised are also similar to that
of the assesee’s appeal in ITA No. 154/Viz/2023 (supra), considering the
similar facts and circumstances involved in both the cases, our decision
given in the assessee’s appeal in ITA No. 154/Viz/2023 mutatis mutandis
applies to the assessee’s appeal in ITA No. 155/Viz/2023 also. Thus, the
appeal in ITA No. 155/Viz/2023 is allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for
statistical purposes.
Pronounced in the open Court on 10th August, 2023.
Sd/- Sd/- (एस बालाकृ�णन) (दु�वू� आर.एल रे�डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सद�य/ACCOUNTANT MEMBER �या�यकसद�य/JUDICIAL MEMBER Dated :10th August, 2023 OKK - SPS आदेश क� ��त�ल�प अ�े�षत/Copy of the order forwarded to:- 1. �नधा�रती/ The Assessee– Parivarthan, Kakinada C/o. Uma Manovikas Nagar, Vakalapudi, Kakinada, East Godavari District, Andhra Pradesh533005. 2. राज�व/The Revenue – Income Tax Officer, Aayakar Bhavan, Kambala Cheruvu, Veerabhadrapuram, Rajahmundry, Andhra Pradesh – 533105. 3. The Principal Commissioner of Income Tax, 4.आयकर आयु�त (अपील)/ The Commissioner of Income Tax (Appeals), 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, �वशाखापटणम/ DR, ITAT, Visakhapatnam 6.गाड� फ़ाईल / Guard file
आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
