RAVINDRANATH EDUCATIONAL DEVELOPMENT SOCIETY, GUNTUR V. INCOME TAX OFFICER (EXEMPTIONS), GUNTUR

ITA 130/VIZ/2023

AI Insights

The case involves two educational societies, Sri Ravindranath Educational Development Society and Sri Gudibandi Somireddy Educational Society, which appealed against the orders of the Commissioner of Income Tax (Exemptions) rejecting their applications for registration under section 12AB of the Income Tax Act, 1961. The primary issue was the non-submission of mandatory information required for the registration process. The Tribunal noted that although the assessee had been given multiple opportunities to comply, the reply submitted on 08.12.2022 was not considered by the CIT(E). Therefore, the Tribunal decided to remit the matter back to the CIT(E) for a fresh consideration, providing the assessee another opportunity to present their case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135877 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 30-05-2023
• Assessment Year: misc
• Appeal Filed On: 20-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.130/Viz/2023 (ननधधारण वर्ा / Assessment Year :-NA-) Sri Ravindranath Educational Development Society D.No.5-50-17 6/14, Brodiepet Guntur [AAGAS8819N] Vs. Income Tax Officer (Exemptions) Guntur आयकर अपील सं./I.T.A.No.131/Viz/2023 (ननधधारण वर्ा / Assessment Year :-NA-) Sri Gudibandi Somireddy Educational Society D.No.5-76, Kollipara Guntur [PAN : AAGTS4541J] Vs. Income Tax Officer (Exemptions) Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Shri O.N.Hari Prasada Rao, DR सुनवधई की तधरीख / Date of Hearing : 31.05.2023 घोर्णध की तधरीख/Date of Pronouncement : .07.2023 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : These appeals are filed by the assessees against the orders of Commissioner of Income Tax (Exemption) [CIT(E)] dated 24.02.2023. Since the issue involved in these appeals is common, these appeals are 2 I.T.A. No.130 & 131/Viz/2023 Sri Ravindranath Educational Development Society & Sri Gudibandi Somireddy Educational Society, Guntur clubbed, heard together and a common order is being passed for the sake of convenience as under. Facts are extracted for I.T.A.130/Viz/2023. 2. Brief facts of the case are that the assessee had filed an e-applicati in Form No.10AB seeking registration u/s 12AB of the Income Tax Act, 1961 (in short “Act”). Notice dated 01.12.2022 was issued in respect of proceedings u/s 12A(1)(ac)(ii) to the address mentioned in the Form 10AB to produce copy of Memorandum of Associaton / Trust Deed for verification and to furnish a detailed reply by 19.12.2022 on the specific information called for in the said notice. As there was no compliance from the assessee to the said notice, the assessee was given one more opportunity vide notice dated 02.01.2023 to submit the information / documents on or before 10.01.2023 as per the questionnaire given in detail. However, there is no response from the assessee and the assessee was given final opportunity of being heard vide ntoice dated 06.02.2023 to submit the information. However, there was no response from the assessee and the assessee has not filed any information or documentary evidence. Hence, after careful consideration of the application for registration in Form No.10AB, Ld.CIT(E) rejected the application seeking registration u/s 10AB, since, the assessee failed to furnish mandatory information and since the case is to be decided in time bound manner. 3 I.T.A. No.130 & 131/Viz/2023 Sri Ravindranath Educational Development Society & Sri Gudibandi Somireddy Educational Society, Guntur 3. On being aggrieved, the assessee preferred an appeal before the Tribunal by raising the following grounds : 1. The order of the learned Commissioner of Income Tax (Exemtpion), Hyderabad is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Exemtpion) is not justified in rejecting the applicaiton filed by applicant in Form No.10AB for Registration u/s 12AB of the Act. 3. The learned Commissoner of Income Tax (Exemtpion) is not justified in not consiering the reply filed on 08.12.2022. 3. Any other ground that may be urged at the time of appeal hearing. 4. Ground No.1 and 3 are general in nature which do not require specific adjudication. 5. Ground No.2 and 3 are related to rejection of application in Form No.10AB for registration u/s 12AB of the Act. At the outset, the Ld.AR submitted that the Ld.CIT(E) is not justified in rejecting the application filed in Form No.10AB for Registration u/s 12AB of the Act. The Ld.AR further submitted that the reply filed by the assessee on 08.12.2022 is not considered and therefore, pleaded to afford one more opportunity of being heard before the Ld.CIT(E) to substantiate it’s case. 6. Per contra, the Ld.DR submitted that the assessee was given sufficient opportunities of being heard before the Ld.CIT(E) and to 4 I.T.A. No.130 & 131/Viz/2023 Sri Ravindranath Educational Development Society & Sri Gudibandi Somireddy Educational Society, Guntur furnish information or documentary evidence. However, since the assessee failed to submit mandatory information, the Ld.CIT(E) is justified in rejecting the applicaton filed in Form No.10AB for registration u/s 12AB. Therefore, pleaded to uphold the order passed by the Ld.CIT(E) and dismiss the appeal of the assessee. 7. We have heard both the parties and perused the material available on record. It is apparent from the records that the assessee was given sufficient opportunities before the Ld.CIT(E) to furnish the mandatory information for registration u/s 12AB. In response to the notices given by the Ld.CIT(E), the assessee has filed it’s reply on 08.12.2022, which was not looked into. Hence, the Ld.AR pleaded to afford one more opportunity of being heard to the assessee before the Ld.CIT(E). Therefore, keeping in view the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(E) to afford one more opportunity of being heard to the assessee. The assessee is also directed to adhere to the notices issued and cooperate during the proceedings. 8. In the result, the appeals filed by the assessee are allowed for statistical purpose. 5 I.T.A. No.130 & 131/Viz/2023 Sri Ravindranath Educational Development Society & Sri Gudibandi Somireddy Educational Society, Guntur Order pronounced in the open court on 14 th July 2023. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 14.07.2023 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– (i) Sri Ravindranath Educational Development Society, D.No.5-50-17, 6/14, Brodiepet, Guntur (ii) Sri Gudibandi Somireddy Educational Society, D.No.5-76, Kollipara, Guntur 2. रधजस्व/The Revenue – The Income Tax Officer (Exemptions), 2 nd Floor, Rajkamal Complex, Main Road, Lakshmipuram, Guntur 3. The Commissioner of Income Tax (Exemptions) Hyderabad 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam