The Nashik Division Postal Club, Nashik, Nashik V. Commissioner of Income Tax (Exemption), Pune, Pune

ITA 127/PUN/2023

AI Insights

The case involves the Nashik Division Postal Club appealing against the decision of the Commissioner of Income Tax (Exemption), Pune, which refused to grant 12AB registration under section 12A(1)(ac)(vi) of the Income-tax Act, 1961. The appellant had filed an application in Form No 10AB seeking registration as a charitable trust/institution. The CIT(E) initially requested additional documents to verify the appellant's eligibility but subsequently rejected the application due to insufficient information, without providing further notice or opportunity to comply. The Tribunal found this action to be in violation of the principles of natural justice and remanded the case for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136232 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-04-2023
• Assessment Year: misc
• Appeal Filed On: 31-01-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “ए” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “A” BENCH, PUNE BEFORE HON’BLE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No. 127/PUN/2023 The Nashik Division Postal Club, Nashik Kanhere Wadi, Nashik - 422001 PAN:AADTT0524B . . . . . . . अपीलार्थी / Appellant बनाम / V/s. Commissioner of Income Tax Officer Exemption, Pune. . . . . . . .प्रत्यर्थी / Respondent द्वारा / Appearances Assessee by : None Revenue by : Shri B. Koteswara Rao सुनवाई की तारीख / Date of conclusive Hearing : 28/04/2023 घोषणा की तारीख / Date of Pronouncement : 28/04/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; The present appeal is assailed against the DIN: ITBA/EXM/F/EXM45/2022-23/1047741858(1) an order of refusal to grant 12AB registration passed u/s 12A(1)(ac)(vi) of the Income-tax Act, 1961 [for short “the Act”] by the Commissioner of Income Tax (Exemption), Pune [for short “CIT(E)”] dt. 30/11/2022. The Nashik Division Postal Club, Nashik ITA No.127/PUN/2023 ITAT-Pune Page 2 of 4 2. We have heard the rival contentions of both the parties; and subject to the provisions of rule 18 of “ITAT Rules”, perused the material placed on record, and we note that; the appellant has e-filed an application in Form No 10AB on 04/05/2022 seeking grant of registration u/s 12AB under the category of charitable trust / institution. The Ld. CIT(E) in-order to verify the objects, activities and to ascertain the fulfilment of conditions for granting registration u/s 12AB of the Act, was put the appellant to a notice dt. 02/09/2022 thereby calling upon additional documents. Perusing the Form 10AB, the Ld. CIT(E) without further notice has rejected the application in the event of failure to adduce the sufficient information and documents necessary for the purpose. Aggrieved thereby, the appellant is in appeal alleging the action of Ld. CIT(E) as erroneous. 3. Seemingly, the preliminary submission made alongwith the application u/s 12A(1)(ac) did not productively prove the eligibility and claim of the appellant for grant of approval u/s 12AB of the Act, as The Nashik Division Postal Club, Nashik ITA No.127/PUN/2023 ITAT-Pune Page 3 of 4 a consequence the Ld. CIT(E) without further opportunity to the appellant rejected the application in violation of principle of natural justice as commanded by proviso to section 12AA(1)(b)(ii) of the Act, thus action of the Ld. CIT(E) suffered from sufficiency of reasonable opportunity to the appellant to refute the rejection vis-à-vis to comply with the requirements sought. It shall be worthy to underlined that the opportunity of being heard should be real, reasonable and effective and same should not be empty formalities, it should not be a paper opportunity, the doctrine of natural justice is a facet of fair play in action and no person shall be saddled with a liability without being heard. 4. Thus for the aforestated reason, we without commenting on the merits of the case, deem fit to remand the matter back to the file of Ld. CIT(E) for according reasonable & effective three opportunities to refute the rejection vis-à-vis to comply with the requirements sought. The Nashik Division Postal Club, Nashik ITA No.127/PUN/2023 ITAT-Pune Page 4 of 4 5. We also direct the appellant to comply with the requirements of notice in this regarding by adducing necessary evidentiary material including records without seeking unreasoned adjournment. 6. Resultantly, the appeal of the appellant is ALLOWED FOR STATISTICAL PURPOSE. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Friday 28 th day of April, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; ददनाांक / Dated : 01st day of May, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT, Pune 4. The Pr. CIT(E), Pune 5. DR, ITAT, Pune “A” Bench, Pune 6. गार्ड फ़ाइल / Guard File. Ashwini आदेशानुसार / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्यायादधकरण, पुणे / ITAT, Pune.