BOARD OF RAO MOHAR SINGH COLLEGE OF EDUCATION ,GURGOAN V. CIT EXEMPTION WARD, FARIDABAD

ITA 1670/DEL/2024

AI Insights

The case involves the Board of Rao Mohar Singh College of Education, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Chandigarh, rejecting their application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The rejection was based on non-compliance with notices issued by the CIT(E), which the appellant claimed not to have received. The Tribunal found that the appellant was not given a proper opportunity to be heard and thus set aside the CIT(E)'s order, remanding the case for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312924 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Other Referred Cases: N. Balakrishnan vs. M KrishnaMurthy, Collector Land Acquisition Vs. Mst. Katiji
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEHA CHAUDHARY
• Assessee Lawyers: VINAY CHAWLA
• Keywords: Set aside; Opportunity of being heard; Reasonable cause

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘B’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1670/Del/2024 [Assessment Year: 2022-23] Board of Rao Mohar Singh College of Education, Behrampur, Sector74, Gurgaon-122004 Vs Commissioner of Income Tax (Exemptions), Chandigarh PAN-AABTB2781L Assessee Revenue Assessee by Shri Vinay Chawla, CA Revenue by Ms. Neha Chaudhary, CIT-DR Date of Hearing 24.04.2025 Date of Pronouncement 30.04.2025 ORDER PER MANISH AGARWAL, AM, This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Exemption), Chandigarh [CIT(E), in short] in DIN & Notice No. ITBA/EXM/F/EXM45/2022-23/1046286728(1) dt. 13.10.2022 rejecting the registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’). 2. The appeal is filed by the assessee with a delay of 487 days. The assessee filed an application stating the reasons for the delay supported by an affidavit. It was the submission of the ld. A/R that assessee has not received any notices issued by the CIT(E) and the person who was looking after the income tax matters had left the job without intimating about the outcome of the present application. The assessee came to know about the ex-parte order only when it had made enquiries in e-filing portal. Accordingly, the appellant submitted that there has been the delay due to sufficient and bonafide reasons in filing the present appeal and requested for the condonation of the delay. The assessee has also placed reliance on 2 ITA No.1670/Del/2024 Board of Rao Mohar Singh College of Education Vs. CIT(E) the judgement of hon’ble Supreme Court in the case of N. Balakrishnan vs. M KrishnaMurthy, (1998) 7 SCC 123. He further placed reliance on judgement of hon’ble Apex court in the case of Collector Land Acquisition Vs. Mst. Katiji reported in 167 ITR 471. 3. Per contra, ld. CIT DR stated that reasons stated by the assessee are general in nature and, therefore, delay should not be Condoned. 4. After considering the reasons stated and the judicial pronouncements relied upon by the assessee, we find there is a reasonable cause in delay in filing the appeal which is hereby condoned and the appeal is decided on merits. 5. In the instant case, assessee had filed application on 01.04.2022 for registration u/s. 12A(1)(ac)(iii) of the Act before the ld. CIT(E). It was the submission that it is claimed by ld. CIT(E) that notices were issued to the assessee in respect of proceedings u/s.12A(1)(ac)(iii) of the Act to produce the copy of Memorandum of Association/Trust deed for verification and to furnish a detailed reply on the specific information called for through e- filing portal. It was the submission that the concerning person looking after the income tax matters of the appellant trust has inadvertently forgotten to check the e-filing portal and further no notice was received through email or in physical mode thus, the assessee could not comply with the notices issued by ld. CIT(E). It was the submission that it was in this backdrop that the ld. CIT(E) rejected both the application and dismissed the application filed by the assessee. Ld. AR prayed that the appellant trust may be granted one more opportunity to produce the required details as called for by the ld. CIT(E) for granting registration u/s.12A(1)(ac)(iii) of the Act. 6. In reply, ld. CIT DR did not raise any objection to the request of ld. AR of the assessee. 7. We have considered the rival submissions. Ld. CIT(Exemption), Chandigarh has rejected the applications filed by assessee for non- compliance. A perusal of the impugned order of ld. CIT(E), Chandigarh clearly shows that notices were issued to the assessee through e-filing 3 ITA No.1670/Del/2024 Board of Rao Mohar Singh College of Education Vs. CIT(E) portal to furnish the detailed reply on the specific information called for. However, the appellant trust failed to furnish the same, for which, the registration u/s. 12A(1)(ac)(iii) was rejected by the ld. CIT(E). It was the contention of ld. AR that no notices were received by the assessee. Now, ld. AR submits that the appellant trust has all the evidences as sought by ld. CIT(E) and will be produced if the matter is remanded back to the file of ld. CIT(E). We are of the view that proper opportunity of being heard was not provided to the assessee and hence, in the interest of justice, we set aside the order of CIT(E) and remit the issue back to the file of the CIT(E), who will examine all the details and assessee will comply with all the requirements. In term of the above, the order of CIT(E) is set aside and matter restored back to his file for fresh consideration of registration u/s.12A(1)(ac)(iii) of the Act. 8. In the result, appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on 30.04.2025. Sd/- Sd/- [SATBEER SINGH GODARA] [MANISH AGARWAL] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 30.04.2025. PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "