VIDYA DEVI CHARITABLE TRUST, DELHI V. Commissioner of Income Tax(Exemption), DELHI

ITA 1327/DEL/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 0752 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 07-07-2024
• Assessment Year: misc
• Appeal Filed On: 22-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12; 12A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.1327/Del/2024 Vidya Devi Charitable Trust 938/3 Nai Walan Near Kalkadas Chowk, Karol Bagh Delhi Vs. CIT(E) Delhi TAN/PAN: AADTV5681K (Appellant) (Respondent) Applicant by: Shri Baldev Raj, Chartered Accountant Shri Manish Upneja, Chartered Accountant Respondent by: Ms. Sapna Bhatia, CIT-DR Date of hearing: 08 07 2024 Date of pronouncement: 25 07 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ex e mpt io n) , Del hi da te d 01.02.2 024 p as se d un de r S ec ti on 12 AB (1 )(b )(ii )( B) of th e Inc o me Ta x Act , 19 61 ( the A ct ) . 2. The g ro un ds of a pp eal r ais ed b y t h e a s ses se e rea d as u nd e r: “1. T h a t o n t h e f a c t s a n d i n l a w , t h e o r d e r d a t e d 0 1 . 0 2 . 2 0 2 4 p a s s e d b y L d . C I T ( E X E M P T I O N ) , D e l h i [ h e r e i n a f t e r f o r t h e s a k e o f b r e v i t y r e f e r r e d t o a s " T h e L d . C I T ( E )"] u / s 1 2 A B ( 1 ) ( b ) ( i i ) ( B ) o f t h e I n c o m e T a x A c t , 1 9 6 1 [ h e r e i n a f t e r f o r t h e s a k e o f b r e v i t y r e f e r r e d t o a s " T h e A c t "] i s b a d i n l a w a n d v o i d a b i n i t i o. 2. T h a t o n t h e f a c t s a n d i n c i r c u m s t a n c e s o f t h e c a s e , t h e L d . C I T ( E ) e r r e d i n n o t g r a nt i n g t h e r e g i s t r a t i o n u / s.1 2 A B ( 1 ) ( b ) ( i i ) ( B ) o f t h e A c t.” 3. Wh en th e mat te r w as cal le d f or h ear in g, th e l d. co un se l f or th e ITA No.1327/Del/2024 2 As ses se e su b mit te d that Ass es se e is a Tru st e st ab lis he d b y Tr us t Dee d da te d 15 .1 0. 2 01 3 f or the p ur po s es of pro vi di ng e d ucati on a nd me dic al f aci li tie s to t he ne ed y. The Ass es se e-Tru st re cei ve d provi si on al r eg is tr a tio n u nd er Se cti on 12 A( 1)( ac )( vi) of t he A ct on 20. 01 .2 02 2 i n F or m 1 0A C f ro m C IT (E) De lh i f or t he per io d f ro m A. Y. 2 02 2-23 t o A.Y . 2 02 4-25. The re af ter , the a s ses se e f ile d app lica ti on da ted 2 9.0 9. 20 23 in F or m 10 AB f o r r eg ul ar r egi st ra ti on un der S ec tio n 12 A( 1)( ac )(i ii ) of th e A ct. T he ld . c o un sel poi nt ed o ut tha t t he c o mpe te nt aut ho rit y, i.e ., CI T(E ) D el hi p as se d an ex-p ar te ord er r ej ect in g t h e ap pli ca ti on f or reg ula r re gi st rat i on w it ho ut f ollo wi ng th e s tan dar d o pe ra tin g p ro ced ur e t o is su e n o tic es . T he ass es se e di d no t r ece iv e an y al ert o r mai l or a n y co m mu nic at io n abo ut no tic e/qu es ti on nai re p ur po rt ed l y iss ue d b y th e CI T( E). As p er the i mpu gn ed ord er rej ect in g re gi st ra ti on, th e CI T( E) cla i ms t o h av e iss ue d que st io nn ai re e le ct ro nic al l y on 20 .1 0. 20 23 an d a ske d to f urni sh c er ta in d o cu men ts /d et ail s i n res pec t of ap pl i cat io n f or reg is tr ati on of Tru s t wh ic h wa s f oll ow ed b y re mi nd er s. T he a sse ss ee did no t r ece iv e a n y of suc h n ot ice s a n d the r eje ct io n o rd er c a me t o the n ot ic e of th e a sse ss ee o n ch ec kin g t he s ta tu s of t he app li ca ti on on th e In co me T ax P ort al . Th e ld. c o un sel t hu s su b mit t ed th at t he reg ul ar re gi st rat io n ha s bee n re jec te d ex-p ar te o n t he g ro u nd s of no n co mpl ia nc es of sta tu to r y no ti ces wi th out gi vi ng suf f ici en t op por tu ni t y a nd w i tho ut b ri ng in g su c h no tic es t o th e kn ow led ge of the a ss es see-T ru st . The l d. c ou nse l th u s u rg ed f or su it ab le re li ef . 4. The CI T-DR f or t he R ev en ue, on t h e ot her ha nd, co nt end ed tha t s uf f icie nt no t ice s w er e s er ve d up on th e a sse ss ee a nd th e ass es se e ha s f ail ed to d is cha rg e t he o n us t o su pp or t t he g enu in en es s of acti vi ti es c arr ie d ou t wh il e se ek in g re gul ar r eg is tr ati on. He nce, wh ere t he co nd it io n s l ai d do wn u nd er S ect io n 12 AB of t he Act c ou ld not b e v erif i ed , t he act io n of the CI T(E ) c an no t be f ault ed f o r ITA No.1327/Del/2024 3 rej ec tin g th e a p pli ca ti on se ek in g re gi str at io n un d er Se cti on 12 A( 1)( ac )(i ii ) of t he Ac t. 5. We ha ve c on si der e d t he r iv als s ub mi ssi on s an d pe ru se d th e i mpu gne d or de r pa sse d un de r Se ct io n 12A B( 1)( b) (i i)( B) of the Act in Fo r m 1 0A D t ow ard s rej ec ti on of ap pl ic ati on f or re gu la r reg is tr ati on . T he ass es se e c on te nd s th at th e n oti ce s a nd que st io nn ai re i ss ue d b y t he CI T( A) w ere no t s er ve d o n t he a ss es se e res ul ti ng i n e x pa rt e o rd er b y t he C IT ( E). 6. On per u sal of th e i mpugne d ord er un der Se ct io n 1 2A B, it i s ob ser ve d th at n o w her e it i s c lai me d tha t th e n oti ce s we re ac tu al l y ser ve d o n the a sse sse e. Wi th th e ad v ent di gi ta l e co-s ys t e m an d t he co mpl ia nc es r eq uir ed in v ir tu al mod e rec en tl y int ro du ced , it i s co mmo n kn ow led g e th at c er tai n p ra cti ca l dif f ic ult ie s do a ri se t o cer ta in se cti on of uni nf or me d t ax pa yers. Hav in g r eg ar d to th e f act tha t a sse ss ee is e nga ge d i n ch ar ita b le w or k an d t he t rus te es a re doi ng h on or ar y w or k a nd ha vi ng re ga r d t o t he f a ct th at th e i mp ug ne d ord er d o not pr ov i de th e f act u m t ow ard s se rv ice of no t ice, in o ur con si de re d v ie w, it is on l y de si ra ble tha t o ne more o pp ort un it y b e gra nt ed t o t he a ss ess ee t o sat isf y t he de si gn ate d au t hor it y, i. e. , CI T(E ) f or it s ri g htf ul e nt itl e men t f or re gi st rat io n in acc or da nce wit h la w. It w il l pro mo te f air pla y a n d wi ll a ls o a cco rd wit h pri nc ip le s of na tu ra l ju st ic e in ur ed b y the le gi sla tu re in u neq ui vo ca l ter ms i n Se cti on 1 2 AB of t he A ct . 7. Co ns eq uen tl y, w e set a si de th e i mp ug ned o rd er of C IT( E) dat ed 01 .0 2.2 02 4 and re sto re the m att er b ac k t o th e f ile of th e des ig na te d a uth or it y f o r c on si der at io n of app li cat io n f or reg is tr ati on den ov o af te r t aki n g in to acc ou nt al l as pe cts in rel at i on t o t he reg is tr ati on i n acc o rda nc e wi th la w. ITA No.1327/Del/2024 4 7. Nee dl es s to sa y, app li ca ti on sh al l be di sp os ed of b y t he des ig na te d a ut ho rit y af te r g iv in g pro p er op por tu ni t y to t he as ses se e. The as se sse e i s a lso ca uti on ed t o dut if ul l y a tt en d t he d en ov o pro ce ed in gs bef or e the de si gn at ed au t hor it y w it ho ut an y de mur . All the poi nt s ar e ke pt u po n f or co ns ide ra ti on of th e des ig na te d aut ho ri t y w it ho ut a n y f ett er. It sh all b e op en t o t he a ss es see su pp ort the ap pli ca ti on f or re gi st ra ti on af res h b ef ore t he des ig na te d aut ho ri t y w ith a ll do cu me nt ar y e vi den ce s as it ma y co ns id er exp ed ie nt . 8. In t he re su lt , th e app eal of the a sse ss ee i s al lo we d f or sta ti st ica l pu rp os es . Order pronounced in the open Court on 25 th July, 2024. Sd/- Sd/- [SUDHIR PAREEK] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 25 th July, 2024 Prabhat Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar