BAI RUXMANI W/O. SHETH HIMATLAL SHIVLAL TRUST,VADODARA V. THE CIT (EXEMPTION), AHMEDABAD

ITA 270/AHD/2024

AI Insights

The case involves Bai Ruxmani W/o Sheth Himatlal Shivlal Trust, a public charitable trust, appealing against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected the trust's application for approval under section 12A of the Income Tax Act, 1961. The appeal was initially challenged for being time-barred by 90 days, but the tribunal accepted the explanation for the delay due to the death of the managing trustee and the subsequent inaccessibility of communication channels. The main legal contention in the appeal was the inadequate notice period provided for the hearing, which was only two working days, contrary to the 15 days required by a binding Circular from the Central Board of Direct Taxes dated 19-11-2020. The tribunal found the notice period insufficient and remanded the case for a fresh hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470957 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-11-2024
• Assessment Year: misc
• Appeal Filed On: 15-02-2024
• Other Referred Cases: Chaitanya Goshala Trust vs. CIT (2024) 109 ITR (Trib)(S.N.) 54 (Pune)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KARUN K. OJHA
• Assessee Lawyers: ASSESSEE ADJOURNMENT APPLICATION
• Keywords: Condonation of delay; Set aside; Principle of natural justice; Charitable institution

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER ITA No.270/Ahd/2024 Assessment Year : NA Bai Ruxmani W/o Sheth Himatlal Shivlal Trust Pata Building Kothi Char Rasta Kothi, Vadodara. PAN : AAATB 5639 E Vs. The CIT(Exemption) Anandnagar. Ahmedabad. (Applicant) (Responent) Assessee by : Assessee (Adjournment application filed) Revenue by : Shri Karun K. Ojha CIT-DR सुनवाई क\t तारीख/Date of Hearing : 05/11/2024 घोषणा क\t तारीख /Date of Pronouncement: 05/11/2024 आदेश आदेश आदेश आदेश/O R D E R PER DR. BRR KUMAR, ACCOUNTANT MEMBER Present appeal has been filed by the assessee against order passed by the ld.Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as “Ld.CIT(“E”] dated 18.9.2023 passed under section 12(A)(1)(ac) of the Income Tax Act, 1961 [hereinafter referred to as \"the Act\" for short]. 2. Adjournment application filed by the assessee is hereby rejected. 3. At the outset, it is noticed that the Registry has notified that the appeal of the assessee is time barred by 90 days. To explain the delay, the assessee has filed an application for condonation of delay ITA No.270/Ahd/2024 2 supported by an affidavit pleading interalia that Shri Vijay Babnsilal Patwa, Managing Trustee, who was looking after the accounts and other related matters died on 29th January, 2023 and his email.id to which the notices were being sent, was not traceable; that the passing of the impugned order by the ld.CIT(E) came to the notice of the assessee only later on, and therefore, the impugned delay of 90 days has occurred. It is therefore prayed that as the delay not being intentional, deliberate and beyond the control of the assessee, and the assessee is being a charitable institution, the delay of 90 days in filing appeal before the Tribunal may be condoned. 4. We have gone through the contents of the application for condonation of delay in filing appeal before the Tribunal. The assessee-trust has reasonably explained the reason for the delay in filing present appeal before the Tribunal. We are of the view that no prejudice will be caused to the Revenue if the delay is condoned and the matter is taken up for adjudication on merit. 5. In the appeal, the assessee has taken the following grounds: The Comm. of Income-tax (H) has erred both in law and in facts in passing Order dated 18-9-2023 rejecting/cancellation of approval U/S.12A in respect of Form No.lOAB filed by your Appellant on the above Order is after giving short notice of I learing and not following binding Circular Central Board of Direct Taxes dated 19-11-2020 whereby Notice of 15 days is required to be given. In this case particularly the last Notice which was dated 12-9-2023 fixing the Hearing on 15-9-2023 was only giving two working days which is against principle of natural justice and therefore the order under Appeal be set aside as held in case of Chaitanya Goshala Trust vs. CIT reported in (2024) 109 1TR (Trib)(S.N.) 54 (Pune) 6. As the facts reveal from the order of the ld.CIT(E) that the assessee is a public charitable trust duly registered under the Bombay Public Charitable Trust Act, 1950 w.e.f 27.5.2021. With reference to the application filed by the assessee in form No.10AB, the ld.CIT(E) ITA No.270/Ahd/2024 3 issued notices to the assessee to file submissions vide notices dated 22.7.2023 and 22.8.2023. Another notice has been issued on 12.9.2023 fixing the hearing on 15.9.2023. Since the assessee did not appear for hearing, the ld.CIT(E) passed the order rejecting the application of the assessee on 18.9.2023. 7. Before us, the assessee has taken a ground that the assessee has got only two days’ working day to appear before the ld.Commissioner which is very less and was against the principles of natural justice. 8. We have gone through the entire record placed before us, and we find that the time given to the assessee by the notice dated 12.9.2023 to appear on 15.9.2023 was too less for compliance. The ld.DR fairly accepted the proposition that no prejudice will be caused to the Revenue if the assessee is given an opportunity of hearing before the ld.CIT(E). Hence, the matter is remanded back to the file of the ld.CIT(E) to re-examine the issue and pass a fresh order within a period of 50 days from the date of receipt of this order, after giving due opportunity of hearing to the assessee in accordance with law. 9. In the result, the appeal of the assessee is allowed for statistical purpose. Copy of this order be given to the assessee. The Registry is directed to dispatch as per procedure. Order pronounced in the Court on 5TH November, 2024 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (DR. BRR KUMAR) ACCOUNTANT MEMBER vk* "