Saday Chartiable Trust, New Delhi V. CIT (Exemption), New Delhi

ITA 1079/DEL/2023

AI Insights

The case involves Saday Charitable Trust appealing against the orders of the CIT(Exemption), which rejected their applications for registration under sections 12A and 80G of the Income Tax Act, 1961. The CIT(Exemption) had rejected these applications based on the trust's alleged failure to respond to notices, which the trust contested, claiming non-receipt of proper notifications as per the prescribed e-proceedings guidelines. The tribunal, after hearing the arguments and considering the circumstances, decided to remand the matter back to the CIT(Exemption) for a fresh examination, allowing the trust an opportunity to present its case and any additional evidence.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131248 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 05-09-2023
• Assessment Year: misc
• Appeal Filed On: 12-04-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ATREYA GANDHAUDHURY
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI C. M. Garg, JUDICIAL MEMBER and SHRI M. BALAGANESH, Accountant Member ITA No. 1079 & 1080/Del/2023 (Assessment Year: 2023-24) Saday Charitable Trust, D-36, Gali No. 9, Friends Enlave, Munda, Nangloi, New Delhi Vs. CIT(Exemption), New Delhi (Appellant) (Respondent) PAN:AAZTS9873N Assessee by : Shri Atreya Gandhaudhury, Adv Revenue by: Shri H. K. Choudhary, CIT DR Date of Hearing 06/09/2023 Date of pronouncement 15/09/2023 O R D E R PER M. BALAGANESH, A. M.: 1. The appeals in ITA No. 1079 and 1080/Del/2023 for AY 2023- 24, arise out of the order of the ld CIT(Exemption), Delhi dated 20.02.2023 in Appeal CIT(EXEMPTION)DELHI/2022-23/12AA/11480 passed u/12AB(1)(B)(II)(b) of Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. The assessee has raised the following grounds of appeal in ITA No. 1079/Del/2023:- “1. THAT the impugned order passed by the learned Commissioner of Income Tax (Exemption) Delhi unjust and arbitrary, contrary to provisions of law and facts available on record. II. The Ld. CIT(Exemption) Delhi has erred in both law and on facts in rejecting application for seeking registration u/s12A(1)(ac)(iii) of the Income Tax Act, 1961 filed by the appellant charitable Trust, Solely on the basis of the wrongly drawn unilateral inferences and observations that the appellant has failed to comply to his notices, ITA No. 1079 & 1080/Del/2023 Saday Charitable Trust Page | 2 which are contrary to the facts of appellant case, though the appellant has not served any notice as per the procedure prescribed under the E-proceedings/guidelines issued by CBDT i.e serve of notice on registered mail followed by sms alerts on registered mobile no. III. That the learned Commissioner of Income Tax (Exemptions) Delhi has not considered completely the information/evidence brought on records at the time of filing application on merit in correct perspectives manner and without granting any fair opportunity of being heard while denying the rejection of registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961.” 3. The assessee has raised the following grounds of appeal in ITA No. 1080/Del/2023:- “I. THAT the impugned order passed by the learned Commissioner of Income Tax (Exemption) Delhi unjust and arbitrary, contrary to provisions of law and facts available on record. II. The Ld. CIT(Exemption) Delhi has erred in both law and on facts in rejecting application for seeking registration u/s80G(5)(iii) of the Income Tax Act, 1961 filed by the appellant charitable Trust, Solely on the basis of the wrongly drawn unilateral inferences and observations that the appellant has failed to comply to his notices, which are contrary to the facts of appellant case, though the appellant has not served any notice as per the procedure prescribed under the E-proceedings/guidelines issued by CBDT i.e serve of notice on registered mail followed by sms alerts on registered mobile no. III. That the learned Commissioner of Income Tax (Exemptions) Delhi has not considered completely the information/evidence brought on records at the time of filing application on merit in correct perspectives manner and without granting any fair opportunity of being heard while denying the rejection of registration u/s 80G(5)(iii) of the Income Tax Act, 1961.” 4. We have heard the rival submissions and perused the materials available on record. The assessee is a public charitable trust created on 09.06.2020. The assessee trust filed an application for registration u/s 12A(1)(ac)(iii) in Form NO. 10AB on 27.09.2022 along with financial statements as on 31.03.2022; trust deed, Form 10AC and activities carried out by the assessee trust. The ld CIT(E) issued questionnaire dated 28.11.2022 calling for certain details/ ITA No. 1079 & 1080/Del/2023 Saday Charitable Trust Page | 3 documents/ clarification in support of the claim of registration of the assessee trust. The ld CIT(A) also granted further opportunity on 10.01.2023 and 09.02.2023. No replies were filed by the assessee according to the ld CIT(E). Accordingly, the ld CIT(E) proceeded to conclude that he is not able to verify the genuineness of the activities carried out by the assessee and proceeded to reject the application in Form No. 10AB seeking registration of the trust u/s 12A(1)(ac)(iii) of the Act vide his order dated 20.02.2023. Consequentially the application made in Form 10AB seeking exemption u/s 80G(5) of the Act was also rejected by the ld CIT(E) vide his rejection order dated 20.02.2023. 5. Aggrieved by these two orders, the assessee is in appeal before us. 6. Before us the ld AR submitted that SMS alerts were not sent to the managing trustee once the notices were uploaded in the portal. The consultant of the assessee logged into the portal on 16.03.2023 to check the status of the application in Form 10AB and came to know about issuance of the notice and closure of the proceeding by rejecting the registration. Thereafter, the assessee has preferred appeals before us. He prayed for one more opportunity to be given to the assessee trust to make effective representation before the ld CIT(E). The ld DR did not make serious objection for the same. 7. Considering the totality of the facts and circumstances of the case, we are inclined to restore these appeals to the file of the ld CIT(E) for de novo adjudication in accordance with the law. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is at liberty to furnish fresh evidences, if any, in support of its application seeking registration u/s 12A and seeking exemption u/s 80G of the Act. With these directions, the ITA No. 1079 & 1080/Del/2023 Saday Charitable Trust Page | 4 grounds raised by the assessee in both the appeals are allowed for statistical purposes. 8. In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 15/09/2023. -Sd/- -Sd/- (C. M. Garg) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 15/09/2023 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi