CAPTIAN GURDEEP SINGH SOCIETY,AMRITSAR V. COMMISSIONER OF INCOME TAX ( EXEMPTONS), CHANDIGARH

ITA 504/ASR/2024

AI Insights

The case involves the Captain Gurdeep Singh Society appealing against the decision of the Commissioner of Income Tax (Exemptions), Chandigarh, which rejected their application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961. The rejection was primarily due to the society's failure to respond to notices issued by the CIT(E), attributed to various unforeseen circumstances including the illness of the society's accountant and the absence of its president during critical periods. The Tribunal considered the medical and personal hardships presented and decided to remand the case for a fresh evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31108 (ITAT-AMRITSAR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Non compliance
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (VIRTUAL COURT) BEFORE SH. VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER I.T.A. No. 504/Asr/2024 Assessment Year: NA Captain Gurdeep Singh Society, 236/237 National City Homes, Back side Nissan Car Agency, Near Daburji, G.T. Road, Amritsar [PAN: AAAAC 5239J] (Appellant) Vs. Commissioner of Income Tax (Exemptions), Chandigarh (Respondent) Appellant by Respondent by : : Mrs. Rupinder Kaur Sandhu, President of the Society Sh. Sunil Gautam, CIT-DR Date of Hearing Date of Pronouncement : : 03.12.2024 31.12.2024 ORDER Per Udayan Dasgupta, J.M.: This appeal is preferred by the assessee against the order of the ld. Commissioner of Income Tax (Exemptions), Chandigarh dated 05.07.2024 rejecting the application for registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961. 2 I.T.A. No. 504/Asr/2024 Captain Gurdeep Singh Society v. CIT 2. Grounds of appeal taken by the assessee in Form No. 36 are as under: “1. That due to numerous odd reasons the notices from the CIT (Exemptions) could not be communicated to the appellant leading to the passing of avoidable unsavory order rejecting the application for registration of NGO. 2. That due to inadvertence, the contact details in the profile of the assesse NGO at the portal, which relate to the previous chartered accountant and the manager of the NGO who had left long ago, had not been updated and the notices from the department were sent to them. The assesse did not receive these was thus completely oblivious of all such communications. 3. That unluckily the accountant of the assesse Sh. Uday Hans Pal, who looks after the tax matters of the NGO also, met with a fatal accident on 02-04-2024 resulting into the multiple fractures in left leg and since then is bed ridden and recuperating. 4. That incidentally, the executive head of the NGO Mrs. Rupinder Kaur Sandhu remained out of country from June 06, 2024 to July 27, 2024 and was unavailable for any compliance at her end. 5. That the assessee NGO is 24 years old and had been granted registration on all previous occasions and had never been found wanting in compliance of department proceedings. Its record is impeccable and it has been complying with its all obligations under the Act with regularity, sincerity and diligently. 6. That the assessee was under bona fide belief that it had submitted application for registration with the respondent complete in all respect and never had the slightest inkling that some queries shall be coming forth which it missed to respond due to unusual circumstances. 7. That the assessee NGO possesses complete information and documentary evidence to answer the queries of the respondent although due to the peculiar reasons beyond its control it could not produce the same before the respondent. 8. That the NGO has been actively engaged in carrying out the noble work of welfare for the last about quarter of a century improving the lot of underprivileged especially females and children by providing health care, education and food etc. It deserves the beneficial provisions of registration to carry with the exalted mission. 3 I.T.A. No. 504/Asr/2024 Captain Gurdeep Singh Society v. CIT 9. That the welfare activities of the NGO has come to standstill jeopardizing the rhythm of aid and succor given to the needy low strata of the society as well as adversely impacting the organizational structure of the NGO providing employment to many individuals. 10. That the assessee is not guilty of any mens rea. Nor it is guilty of any deliberate disregard, delinquency or negligence in carrying out its duties under the law. Even in its wild dreams, it never intended to indulge in non compliance. It is victim of exceptional circumstances beyond its control.” 3. The facts of the case are that that assessee has applied for registration u/s 12A(1)(ac)(iii) of the Act, 1961 on 23.01.2024, in response to which a questionnaires were issued electronically on 17.05.2024 on the e-filing portal from the office of the ld. CIT(E). There has not been any response from the assessee in respect of two subsequent notices issued by the ld. CIT(E) being sent to the e-mail ids as specified in the application for registration. In absence of any response and documents, from the assessee, the ld. CIT(E) was not satisfied regarding the genuineness of the activities of the society and the said application for registration has been rejected. 4. Now the matter is before the Tribunal on the grounds contained in the memorandum of appeal. In course of hearing the President of the society Ms. Rupinder Kaur Sandhu, appeared and submitted that the assessee is registered under the Societies Act, 1860 and the society was initially granted registration u/s 12A in the year 03.09.2015 and subsequently provisional registration u/s 12A was also granted on 27.05.2021 which was valid for assessment years 2021-22 to 2023-24. 4 I.T.A. No. 504/Asr/2024 Captain Gurdeep Singh Society v. CIT She further submitted that the primary e-mail id and secondary e-mail id mentioned in the profile belongs to the “Sandhu Association Welfare Society” and her chartered accountant Mr. Iqbal Singh respectively. She further submitted that on account of some severe accident on 2nd April, 2024, the accountant of the society has to undergo major surgery and as a result the entire paper works relating to tax matters and accounts were held up and there has been a failure on the part of the society to attend and file response to the notice of the ld. CIT(E). She further submitted that she was also out of the country and could not access the mail id of her accountant and as a result she was not aware of the ongoing proceedings before the CIT(E). As such, she humbly prayed that the assessee society may please be allowed one more opportunity to represent the case with all papers and documents and to submit full reply before the ld. CIT(E). 5. The ld. DR relied on the order of the ld. CIT(E) but considering the medical grounds put forth by the President of the society, he agreed to the request of granting afresh opportunity. 6. We have heard the rival submissions and considered the materials on record including the medical certificates of Madaan Hospital, Majitha Road, Amritsar, filed by the President of the society in support of her contention of the accident and subsequent surgery and also the fact that during that particular period of time, the 5 I.T.A. No. 504/Asr/2024 Captain Gurdeep Singh Society v. CIT President of the Society herself, was out of country which is evidenced by her passport documents. We find that in the interest of justice the assessee society should be allowed one more opportunity to produce all relevant documents and papers before the ld. CIT(E) to prove the activities of the trust and its objects to the satisfaction of the ld. Commissioner. As such, we remand the matter, back to the files of the ld. CIT(E) to consider the application for registration afresh and to decide the issue after examination of all necessary documents as per provisions of law. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 31.12.2024 Sd/- Sd/- (Vikram Singh Yadav) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1)The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order "