PARIVARTHAN, KAKINADA V. INCOME TAX OFFICER (EXEMPTION WARD), RAJAHMUNDRY

ITA 155/VIZ/2023

AI Insights

The case involves two appeals by the assessee, Parivarthan, against the orders of the CIT (Exemptions), Hyderabad, which rejected the assessee's applications for registration under Section 80G(5) of the Income Tax Act, 1961. The CIT (Exemptions) had issued notices to the assessee requesting documentation, which the assessee partially fulfilled. Subsequently, due to non-submission of complete information, the applications were rejected. The Tribunal found that the CIT (Exemptions) had not provided sufficient time for the assessee to respond, thus violating the principles of natural justice, and remitted the matter back for a fresh consideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128522 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 02-07-2023
• Assessment Year: misc
• Appeal Filed On: 17-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G

Judgement Text

आयकर अपीलȣयअͬधकरण, ͪवशाखापटणम पीठ, ͪवशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM Įी दुåवूǽ आर एल रेɬडी, ÛयाǓयक सदèय एवं Įी एस बालाकृçणन, लेखा सदèय के सम¢ BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ I.T.A. No.154 & 155/Viz/2023 (Ǔनधा[रण वष[ / Assessment Year: Not Applicable) Parivarthan, Kakinada, Andhra Pradesh – 533005. PAN: AAEAP 2047 H Vs. Income Tax Officer (Exemption Ward), Rajahmundry. (अपीलाथȸ/ Appellant) (Ĥ×यथȸ/ Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Sri GVN Hari, AR Ĥ×याथȸ कȧ ओर से / Respondent by : Sri MN Murthy Naik, CIT-DR सुनवाई कȧ तारȣख / Date of Hearing : 03/07/2023 घोषणा कȧ तारȣख/Date of Pronouncement : 10/08/2023 O R D E R PER DUVVURU RL REDDY, Judicial Member : Both the captioned appeals are filed by the assessee against the orders of the Ld. CIT(Exemptions), Hyderabad vide DIN & Notice No. ITBA/EXM/F/EXM45/2022-23/1050957403(1), dated 19/03/ 2023 and ITBA/EXM/F/EXM45/2022-23/1050957267(1) dated 19/03/2023 [ITA No. 154 & 155/Viz/2023 respectively]. 2 Since the assessee has raised identical grounds of appeal / similar issues in both the appeals, these appeals are clubbed, heard together and disposed off in this consolidated order. 2. Brief facts relevant to the ITA No.154/Viz/2023 are that the assessee has filed an e-application in Form No.10AB seeking registration U/s. 80G(5) of the Income Tax Act, 1961 [the Act] before the Ld. CIT(Exemptions), Hyderabad. Thereafter, notices dated 8/12/2022 & 6/1/2023 were issued to the assessee in respect of the proceedings U/s. 12A(ac)(iii) to produce the copy of Memorandum of Association / Trust Deed for verification. In response, according to the Ld. CIT(E), the assessee has submitted partial information and on verification of the information furnished by the assessee, the Ld. CIT(E) called for some other relevant information vide notice dated 27/2/2023. In reply, the assessee submitted that the information called for by the Ld. Revenue Authorities was already furnished by the assessee in their earlier correspondences and the same may be treated as full and complete response. Thereafter, the Ld. CIT(E) issued a show cause letter dated 13/3/2023 and the assessee was asked to submit the information mentioned therein. It was also mentioned in the show cause letter that the assessee has to reply in writing 3 to the said show cause letter on or before 17/3/2023. However, since the assessee has not filed any information or documentary evidence as called for by the Ld. CIT(E), the assessee’s application for registration in Form No. 10AB seeking registration U/s. 12AB was rejected by the Ld. CIT(E) vide his order dated 19.03.2023. Aggrieved by the order of the Ld. CIT(E), Hyderabad, the assessee filed the present appeal before the Tribunal by raising the following grounds of appeal: “1. The order of the Ld. CIT (E), Hyderabad is contrary to the facts and also the law applicable to the fac ts of the case. 2. The Ld. CIT(E) is not justified in rejecting the application filed by appellant in Form No. 10AB for approval U/s. 80G of the Ac t. 3. Any other ground that may be urged at the time of appeal hearing.” 3. At the outset, the Ld. AR submitted before us that the Ld. CIT (E) has passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (E) in order to provide one more opportunity to the assessee of being heard. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that sufficient opportunities had been provided to the assessee however, on 4 the given dates of hearing, neither the assessee nor its Representative filed any information / documentary evidence as called for by the Ld. CIT(E). It was further submitted that the Ld. CIT (E) had no other option but to pass ex-parte order based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(E) does not call for any interference. 4. We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, we find that the Ld. CIT (E) had posted the case on four occasions. However, there was no response on behalf of the assessee before the Ld. CIT(E) on the given dates of hearing. Therefore, the Ld. CIT (E) was left with no other option except to adjudicate the appeal ex-parte. On perusal of the Ld. CIT(E)’s order, we have observed and find it relevant to mention here that the Ld. CIT(E) has issued the show cause notice on 13/3/2023 and requested the assessee to furnish the information on or before 17/3/2023 which shows that there is hardly 4 days for the assessee to furnish the information before the Ld. CIT(Exemptions). It is also pertinent to mention that the Ld. CIT(E) has passed the order on 19/03/2023. In our considered opinion, following the principles of natural justice, the Ld. CIT(E) ought to have given sufficient time or one more opportunity to the assessee to furnish the information as required by the Ld. Revenue 5 Authorities. In this situation, we find strength in the arguments advanced by the ld. AR. Therefore, considering the prayer of the Ld. AR, strictly following the principles of natural justice and in the interest of justice, we hereby remit the matter back to the file of Ld. CIT (E) in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (E) in the proceedings failing which the Ld. CIT (E) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials on the record. It is ordered accordingly. 5. In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove. 6. With respect to ITA No. 155/Viz/2023, since the assessee has raised the identical grounds and the issues raised are also similar to that of the assesee’s appeal in ITA No. 154/Viz/2023 (supra), considering the similar facts and circumstances involved in both the cases, our decision given in the assessee’s appeal in ITA No. 154/Viz/2023 mutatis mutandis applies to the assessee’s appeal in ITA No. 155/Viz/2023 also. Thus, the appeal in ITA No. 155/Viz/2023 is allowed for statistical purposes. 7. In the result, both the appeals of the assessee are allowed for statistical purposes. 6 Pronounced in the open Court on 10 th August, 2023. Sd/- Sd/- (एस बालाकृçणन) (दुåवूǽ आर.एल रेɬडी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदèय/ACCOUNTANT MEMBER ÛयाǓयकसदèय/JUDICIAL MEMBER Dated :10 th August, 2023 OKK - SPS आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the order forwarded to:- 1. Ǔनधा[ǐरती/ The Assessee– Parivarthan, Kakinada C/o. Uma Manovikas Nagar, Vakalapudi, Kakinada, East Godavari District, Andhra Pradesh533005. 2. राजèव/The Revenue – Income Tax Officer, Aayakar Bhavan, Kambala Cheruvu, Veerabhadrapuram, Rajahmundry, Andhra Pradesh – 533105. 3. The Principal Commissioner of Income Tax, 4.आयकर आयुÈत (अपील)/ The Commissioner of Income Tax (Appeals), 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, ͪवशाखापटणम/ DR, ITAT, Visakhapatnam 6.गाड[ फ़ाईल / Guard file आदेशानुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam