SOCIETY OF EDUCATIONAL ASSISTANCE AND TRAINING,JAMMU vs. COMMISSIONER OF INCOME TAX ( EXEMPTIONS), CHANDIGARH

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ITA 227/ASR/2022Status: DisposedITAT Amritsar22 May 2023AY 2022-235 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was denied a reasonable opportunity to submit documents. Therefore, the matter was remitted back to the CIT(Exemptions) for fresh adjudication with an opportunity for hearing.

What were the facts?

The assessee, an educational society, applied for registration under sections 12AB(1)(b) and 80G(5) of the Income Tax Act. The CIT(Exemptions) rejected both applications for non-compliance with notices and failure to submit evidence.

What were the issues?

Whether the CIT(Exemptions) erred in rejecting the registration applications without providing a reasonable opportunity for the assessee to submit necessary documents.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 15.05.2023Pronounced: 22.05.2023

Per: Bench: The assessee filed two appeals against the order of the ld. Commissioner of Income Tax (Exemption) Chandigarh,[in brevity the ‘CIT (E)’] order passed u/s & 228/Asr/2022 2 Assessment Year: 2022-23 12AB (1) (b) and 80G(5) of the Income Tax Act 1961[in brevity the ‘Act’], for A.Y. 2022-23.

2.

At the outset both the appeals are related to application for registration u/s 12A(1)(ac)(iii) and u/s 80G(5) of the Act of the same assessee. Considering both the parties is taken as lead case. 3.

The assessee has taken the following grounds: “

1. The ld. CIT(E) erred in rejecting the registration u/s 12AA of the Income Tax Act in an arbitrary manner.

2. The ld. CIT(E) erred in not giving a reasonable opportunity of being heard while rejecting the application made under section 12AA(1)(b)(ii) of the Act.

3. Assessee craves right to add, alter or modify any grounds of appeal before or at the time of hearing of the appeal.”

4.

Brief fact of the case is that the assessee applied for registration before the ld. CIT(E) u/s 12A(1)(ac)(iii) and 80G(5) of the Act for registration of assessee- trust. The assessee-trust is educational society and providing the education and training to economically weak students of the society and overall the people of the society. The trust is registered on 05/11/2013 by a registered trust deed. The ld. CIT(E) rejected both the application for noncompliance of the notice and non- & 228/Asr/2022 3 Assessment Year: 2022-23 filing of the evidence before the authority. The assessee filed an appeal by challenging the orders of the ld. CIT(E) before us for further adjudication.

5.

The ld. AR filed a written submission which is kept in the record. The ld. AR placed that the assessee is an educational trust and providing the training and education without considering any caste and creed. The trust deed was duly registered on 05/11/2013& is annexed with the submission of APB page nos. 4 to 11 and deed of rectification dated 10.11.2018 APB page 12 to 14. The ld. AR further argued that the reasonable opportunity was denied, and the revenue had not allow sufficient time to submit the documents before the revenue authorities.

6.

The ld. DR vehemently argued and invited our attention in page no. 5 of the order of the ld. CIT(E) which is extracted as below: “5. In view of the above discussions, the present application of the assessee filed in Form 10AB u/s 12A(1 )(ac)(iii) of the Act is disposed of as being deficient in factual evidences in the absence of the requisite submissions and appearances of the assessee at the scheduled hearings. This is despite the granting of at least three opportunities as above. It is pertinent to mention here that it is mandated by the provisions of Section 12A(1)(ac)(iii) of the Act that where the trust or institution has been provisionally registered u/s 12AB it has to make an & 228/Asr/2022 4 Assessment Year: 2022-23

application for registration u/s 12AB within six months of commencement of activities. In the absence of any submission from the applicant it is not possible to ascertain the objects and activities carried out by the applicant. Accordingly, the application filed by the applicant for registration u/s 12AB of the Act is hereby rejected, which rejection and consequent lack of registration will apply from this F.Y. 2022-23 onwards and also supersede any registration granted u/s 12AB or 12AA of the Act by any authority at any earlier time.”

7.

We heard the rival submission and relied on the documents available in the record. From the evidence filed by the assessee, it is clear that the assessee is a charitable organisation and providing education to the people without considering any caste or creed. The assessee was denied the reasonable opportunity to submit the documents before the revenue authorities. We remit back the matter to the ld. CIT(E) for further adjudication de novo and allow the assessee a reasonable opportunity for hearing for submitting the evidence in set aside proceeding. That the decision taken by us in also and follow accordingly. & 228/Asr/2022 5 Assessment Year: 2022-23

8.

In the result, the appeal of the assessee bearing & 228/Asr/2022are allowed for statistical purposes.

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