SHRI VARDHAMAN TRUNST,AKOLA vs. CIT(EXEMPTION), PUNE

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ITA 8/NAG/2021Status: DisposedITAT Nagpur12 October 2023AY 2017-18Bench: SHRI SATBEER SINGH GODARA (Judicial Member), DR. DIPAK RIPOTE (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the non-compliance was due to the COVID-19 pandemic and lockdowns. It directed the CIT (Exemptions) to decide the registration application afresh, granting the assessee an opportunity to present its case.

What were the facts?

The assessee trust applied for registration under Section 12AA of the Income Tax Act. The CIT (Exemptions) rejected the application due to the assessee's failure to comply with hearing notices.

What were the issues?

Whether the rejection of a Section 12AA registration application for non-compliance with hearing notices, due to pandemic-related reasons, warrants a fresh opportunity for the assessee.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH : NAGPUR

Before: SHRI SATBEER SINGH GODARA & DR. DIPAK RIPOTE

Hearing: 20.09.2023Pronounced: 12.10.2023

ORDER PER SATBEER SINGH GODARA, J.M. :

This assessee’s appeal arises against the CIT (Exemption), Pune’s Din & Order No.ITBA/EXM/S/ EXM1/2020-21/1028026048(1), dated 22.09.2020, involving proceedings u/s.12AA of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties. Case file perused.

2.

It emerges during the course of hearing at the outset that the learned CIT(E) has rejected the assessee’s

2 ITA.No.8/Nag./2021 sec.12AA registration application. He observes in para-4 of the impugned order that the assessee had failed to comply with the relevant hearing notice(s) issued on ITPA portal; and more particularly, the one dated 11.04.2020. It is thus a case of non-compliance of the learned CIT(E) hearing notices at the assessee’s behest.

3.

Faced with the situation, learned counsel submitted that the assessee’s non-compliance before the CIT(E) was neither intentional nor deliberate but on account of outbreak of Covid-2019 pandemic followed by various lock downs w.e.f. 15.03.2020 onwards. And also that the assessee is very much willing to co-operate in case it has granted one more effective innings before the learned CIT(E). This is indeed coupled with the fact that the CIT(E) has not commented upon the merits of the issue.

4.

We have given our thoughtful consideration to the foregoing vehement submissions and are of the opinion in the larger interest of justice would be met in case the CIT(E) decides the instant issue of assessee’s sec.12AA registration afresh within three effective opportunities of hearing. It is made clear that it shall be the assessee’s duty and responsibility only to place on record all the relevant evidence/material in consequential proceedings. Ordered accordingly.

3 ITA.No.8/Nag./2021 5. This assessee’s appeal is allowed for statistical purposes in above terms.

Order pronounced in the open Court on 12.10.2023.

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