ANANDOTSAV ASHRAM TRUST,DEHRADUN V. CIT (EXEMPTION), NEW DELHI

ITA 3410/DEL/2023

AI Insights

The case involves the Anandotsav Ashram Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Delhi, rejecting their application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The CIT(E) had rejected the application on grounds that the Trust had not incurred any expenditure on charitable activities and the genuineness of its activities could not be verified due to non-compliance with notices and lack of documentation. The Tribunal found that the CIT(E) had not adequately considered the Trust's submissions and had not provided a fair hearing, leading to the decision to remand the case for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474949 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ASHISH TRIPATHI
• Assessee Lawyers: RAJIV KUMAR JAIN
• Keywords: Opportunity of being heard
• Section: 12A; 80G

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No.3410/Del/2023, A.Y. 2023-24 Anandotsav Ashram Trust, Haripur Kalan, PO: Haripur Kalan, Tehsil Rishikesh, Dehradun PAN: AAATA1734H Vs. CIT (Exemption), Delhi Block E-2, Pratyaksh Kar Bhawan, Civic Centre, Minto Road, New Delhi-110002 (Appellant) (Respondent) Appellant by Sh. Rajiv Kumar Jain, CA Respondent by Sh. Ashish Tripathi, Sr. DR Date of Hearing 03/03/2025 Date of Pronouncement 03/03/2025 ORDER PER AVDHESH KUMAR MISHRA, AM This appeal filed by the assessee is directed against the order dated 31.08.2023 passed by the Commissioner of Income Tax (Exemption), Delhi [hereinafter, the ‘CIT(E)’]. 2. Following grounds have been raised in this appeal: - “1. That on the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Exemption), Delhi has grossly erred on facts as well as in law in rejecting the registration application filed by the appellant Trust u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 in Form No. 10AB, vide order passed u/s 12AB(1) (ii) (B) of the Act. The application deserves to be accepted and the registration deserves to be allowed. ITA No.3410/Del/2023 Anandotsav Ashram Trust 2 2. That on the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Exemption), Delhi has grossly erred on facts as well as in law in rejecting the registration application filed by the appellant Trust u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 in Form No. 10AB, vide order passed u/s 12AB(1)(ii)(B) of the Act. without granting proper opportunity of being heard. 3. That on the facts and in the circumstances of the case the rejection of the registration application filed by the appellant Trust u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 in Form No. 10AB, vide order passed u/s 12AB(1)(ii)(B) of the Act, is improper, unwarranted, unjustified and contrary to the provision of the Act and facts prevailing in the case. It be held that the registration should have been granted and just and proper relief be granted to the Appellant in this respect. 4. That on the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Exemption), Delhi has grossly erred on facts as well as in law in rejecting the registration application filed by the appellant Trust u/s 12A(1)(ac) (iii) of the Income Tax Act, 1961 in Form No. 10AB, vide order passed u/s 12AB(1) (ii)(B) of the Act, by not appreciating the online written submissions dated 12.6.2023, 14.7.2023 and 7.8.2023 and the documentary evidences filed in the proceedings before him. 5. That on the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Exemption), Delhi has grossly erred on facts as well as in law in rejecting the registration application filed by the appellant Trust u/s 12A(1)(ac) (iii) of the Income Tax Act, 1961 in Form No. 10AB, vide order passed u/s 12AB(1) (ii) (B) of the Act, by alleging and holding that in the absence of complete details / information the genuineness of the activities and relation to its charitable objects could not be verified. ITA No.3410/Del/2023 Anandotsav Ashram Trust 3 6. That the appellant craves leave to add, raise, amend, modify, rectify, alter or delete any ground of appeal.” 3. The relevant facts giving rise to this appeal are that the appellant assessee came into existence in 1997. It got provisional registration under section 12A of the Income Tax Act, 1961 (hereinafter, the ‘Act’) on 27.05.2021. Thereafter, it filed fresh application, on 24.02.2023, in Form No. 10AB for granting registration under section 12A(1)(ac)(iii) of the Act. The appellant assessee was show-caused, by the CIT(E), vide various notices to justify its purpose and objective for registration as trust in the Act. However, it failed to ensure compliance of some of the notices. Further, the appellant assessee also failed to furnish/produce cash book, bank book, beneficiary details, bills & vouchers of expenses for verifications; therefore, the CIT(E) rejected the request for registration under section 12A(1)(ac)(iii) of the Act on following two reasonings: i. The applicant assessee had not incurred any expenditure on charitable activities. ii. Genuineness of activities of the applicant assessee was not verifiable. 4. At the outset, the Ld. Authorized Representative (hereinafter, the ‘AR’) submitted that there was delay of 29 days in filing this appeal. The justification of the said delay in filing this appeal was explained with detailed affidavit. To which, the Ld. Senior Departmental Representative ITA No.3410/Del/2023 Anandotsav Ashram Trust 4 (hereinafter, the ‘Sr. DR’) did not seem to have much objections as the content of the affidavit were self-explanatory. We are also satisfied with the reasoning put forward through the said affidavit. The delay in filing the appeal is therefore, condoned. 5. The Ld. Authorized Representative (hereinafter, the ‘AR’) submitted that the Ld. CIT(E) had not considered the assessee’s submissions dated 12.06.2023, 14.07.2023 and 07.08.2023 filed online as evident from the fact that the impugned order had not had any whisper/comment on the same. Further, it was argued that the Ld. CIT(E) did not provide sufficient opportunity of being heard to the assessee. Therefore, the Ld. AR prayed for restoration of the matter before the Ld. CIT(E) 6. We have heard the rival contentions and have perused the material available on the record. We find merit in the arguments of the Ld. AR. The purpose of granting registration under section 12A of the Act and granting approval under section 80G of the Act is to provide/enhance the socio- economic welfare to achieve the directive principles of the state policy. We are of the considered opinion that the objectives for which the appellant/assessee existed have not been properly appreciated by the Ld. CIT(E). Further, it appears that the Ld. CIT(E) has not considered the online submissions of the assessee before rejecting the registration under section 12A(1)(ac)(iii) of the Act. Keeping in view the facts in entirety & afore- stated observations and in the interest of justice, we are setting aside the ITA No.3410/Del/2023 Anandotsav Ashram Trust 5 impugned order and are restoring the matter back to the file of the Ld. CIT(E) for deciding the issue of registration under section 12A(1)(ac)(iii) of the Act afresh after affording reasonable opportunity of being heard to the appellant assessee. Ordered accordingly. 7. In the result, this appeal is allowed for statistical purposes. Order pronounced in open Court on 03 March, 2025. Sd/- Sd/- (VIKAS AWASTHY) (AVDHESH KUMAR MISHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 03/03/2025 Binita, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(DR)-ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "