Anware Hidayt Trust, Surat V. CIT(Exemption) Ahmedabad, Ahmedabad

ITA 145/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7689 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 16-04-2024
• Assessment Year: 2023-2024
• Appeal Filed On: 08-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Assessee Lawyers: SURESH K. KABRA
• Keywords: Opportunity of being heard; Principle of natural justice; Cancellation of registration
• Section: 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.145/SRT/2024 (Hybrid Hearing) Anware Hidayt Trust, 2/2593, Molvi Street, Sagrampura, Surat - 395004 Vs. The CIT(Exemption), Ahmedabad èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AABTA5837C (Appellant) (Respondent) Appellant by Shri Suresh K. Kabra, CA Respondent by Shri Ravi Kant Gupta, CIT(DR) Date of Hearing 17/04/2024 Date of Pronouncement 24/04/2024 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal emanates from the order dated 13.12.2022 passed by the learned Commissioner of Income-tax (Exemption), Ahmedabad, [in short “the Ld.CIT(E)”], wherein learned CIT(E) rejected the application filed by assessee in Form No.10AB for registration under section 12AB of the Income-tax Act, 1961 (in short ‘the Act”). 2. The appeal filed by the assessee is delayed by 339 days. The assessee has filed an affidavit giving reasons for delay in filing of appeal before the Tribunal. It may be stated that the order of the Ld. CIT(E) was passed on 13.12.2022 and accordingly the appeal should have been filed on 09.02.2024. In the affidavit, it has been stated that the assessee did not receive the 2 ITA Nos.145/SRT/2024 Anware Hidayt Trust notices issued by the Ld. CIT(E) because the notices were sent to wrong e- mail id [e-mail] instead of registered e-mail id [e-mail]. The Ld. CIT(E) rejected the application vide order in Form No.10AD, dated 13.12.2022. On receipt of the order, the trust filed a letter to the ld. CIT(E) on 09.01.2023, requesting him to allow opportunity and reopen the case. It is also stated that the trust believed that fresh notice should be issued by the Ld. CIT(E). However, a show notice was received by the trust stating that despite cancellation of registration, the trust was claiming exemption under sections 11 and 12 of the Act and therefore the trustees discussed the issue with their Chartered Accountant, who advised them to meet a Senior Chartered Accountant. The Senior Chartered Accountant advised them to file the appeal before the ITAT against the rejection by the Ld. CIT(E). This process took sometime and the delay in filing appeal was on account of the above facts. The assessee has requested to condone the delay in filing the appeal in the interest of justice and resolve the genuine hardship due to cancellation of the registration of the trust. 3. The reasons for non-submission of various evidence and supporting documents in response to the queries raised by the Ld. CIT(E), was that the trust did not receive the notices which was due to wrong e-mail ID. As per the portal profile, the e-mail ID registered are [e-mail] and [e-mail] whereas the 3 ITA Nos.145/SRT/2024 Anware Hidayt Trust notices were sent on [e-mail]. Since, the trust did not receive the notices, it could not file the relevant details required for consideration for grant of registration. 4. On the other hand, Learned Commissioner of Income-Tax - Departmental Representative (Ld. CIT-DR) for the Revenue opposed the prayer of the assessee for condonation of delay. 5. We have considered the reasons given by the ld. AR and perused with the accompanied documents along with the affidavit. It is seen that the notices were issued at e-mail ID [e-mail] whereas registered e- mail ID [e-mail]. Further, the assessee had filed a letter to reconsider the case on receipt of the rejection order by the Ld. CIT(E) of the application vide order in Form No.10AD. They were waiting for a reply and notice from the Ld. CIT(E), but instead they received of a show cause notice to explain the reasons for claiming exemption under section 11 and 12 of the Act despite cancellation of the registration. Thereafter, they met a Senior Chartered Accountant who advised them to file the appeal before ITAT and request for condonation of delay. We find that the delay in filing the appeal was not deliberate and intentional. We are satisfied that there was sufficient cause for not presenting the appeal within the time allowed u/s 253(3) of the Act. Hence, the delay is condoned and we proceed to dispose the appeal as under. 4 ITA Nos.145/SRT/2024 Anware Hidayt Trust 6. At the outset, Ld. AR of the assessee assailed the impugned order by contending that assessee could not represent its case before Ld.CIT(E) and the order being an ex parte, stood vitiated on account of violation of principles of natural justice. He submits that the assessee had not received the notices issued by the Ld. CIT(E) on 07.11.2022 or 28.11.2022 and hence, the assessee could not file the documents and evidences before Ld. CIT(E) which resulted in the Ld. CIT(E) passing an ex parte order. Therefore, Ld. AR requested that an opportunity to plead his case before the ld. CIT(E) may be granted to the assessee in the interests of justice and fair play. 7. On the other hand, Learned Commissioner of Income-tax - Departmental Representative (Ld. CIT-DR) for the Revenue did not have any objection if the matter is remitted back to the file of the ld. CIT(E) for fresh adjudication. 8. We have heard both the parties. We note that assessee could not plead his case properly before the Ld. CIT(E) by submitting its explanation and other details / documents as requisitioned by the Ld. CIT(E) vide his notices dated 07.11.2022 and 28.12.2022. As contended by the Ld. AR, the assessee did not receive the notices since they were issued to a different e- mail id. Hence, the Ld. CIT(E) passed the order based on limited material available in the application for registration of the trust u/s 12AB of the Act. The reasons for not filing further details has been properly explained by the Ld. AR. The Ld. CIT(DR) has also no objection if matter is remitted back to the 5 ITA Nos.145/SRT/2024 Anware Hidayt Trust Ld. CIT(E). Hence, we are of the view that one more opportunity should be given to the assessee to plead his case before the Ld. CIT(E). It is settled law that principles of natural justice require that the affected party is granted sufficient opportunity of being heard to present his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(E) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee. The assessee is directed to furnish its submission and the relevant details/documents before the Ld. CIT(E). For statistical purposes, the appeal of the assessee is treated as allowed. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 24/04/2024 in the open court. Sd/- Sd/- (PAWAN SINGH) (BIJAYANANDA PRUSETH) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 24/04/2024 SAMANTA Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // TRUE COPY // Assistant Registrar/Sr. PS/PS ITAT, Surat