JUNAGADH DISTRICT CRICKET ASSOCIATION JUNAGADH, JUNAGADH V. PR. CIT (EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 161/RJT/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1168 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-07-2024
• Assessment Year: 2023-2024
• Appeal Filed On: 17-05-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER And SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.161/RJT/2023 (Assessment Year: 2023-24) (Hybrid Hearing) Junagadh District Cricket Assocaition Junagadh, Takshila Apartment, Nehru Park Society, Junagadh-362001 Vs. PCIT (Exemption), Ahmedabad थायीलेखासं./जीआइआरसं./PAN/GIR No.: AABTJ7463P (अपीलाथ /Appellant) ( यथ /Respondent) नधा रतीक ओरसे / Assessee by : Shri Mehul Ranpura, A.R. राज वक ओरसे/Revenue by : Shri Sanjay Punglia, CIT DR स ु नवाईक तार ख/ Date of Hearing : 02/07/2024 घोषणाक तार ख/Date of Pronouncement : 04/07/2024 आदेश/ORDER PER SHRI DINESH MOHAN SINHA, JM: Captioned appeal filed by the Assessee for A.Y. 2023-24 is directed against the order passed by the Ld. PCIT (Exemption), Ahmedabad dated 19.03.2023 that the Ld. PCIT(E) rejected assessee’s application filed in Form No.10AB and u/s. 12AB of the Income Tax Act, 1961 (in short ‘the Act’) and provisional registration was also cancelled. 2. The Grounds of appeal raised by the assessee are as follows:- “1. The grounds of appeal mentioned hereunder are without prejudice to one another. I.T.A No. 161/Rjt/2023 A.Y. 2023-24 Junagadh District Cricket Association Junagadh vs. PCIT 2 2. The order passed by the learned Commissioner of Income-tax (Exemption), Ahmedabad [hereinafter referred to as the “CIT(E)”] u/s. 12AA of the Income Tax Act, 1961 is bad in law and on facts. 3. The learned CIT(E) erred on facts as also in law rejecting the application for registration u/s. 12AA of the Act alleging that the appellant failed to prove the genuineness of its activities with documentary evidence. The learned CIT(E) may kindly be directed to grant registration u/s. 12AA of the Act. 4. Your Honour’s appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal.” 3. The brief facts of the case are that the assessee is a trust working in the name of Junagadh District Cricket Association, Junagadh at Takshshila Apartment, Nehru Park Society, Junagadh-362001. The trust was established to promote the cricket. The trust is a public charitable trust registered with Charity Commissioner under the Bombay Public Trust Act, 1950. The Trust was established on 29.12.2009. The assessee trust has applied for registration under Section 12AB of the Income Tax Act, 1961. The application filed electronically on the ITBA Portal. The same is filed on 29.09.2022 in Form No. 10AB under Rule 17A of the Income Tax Rules, 1962. That a notice was issued to the assessee trust on 08.12.2022 with a request to furnish detail note on the activities actually carried out by the trust as well as certain details and documents in support of the registration. The trust did not reply. In the interest of justice, one more opportunity was given to the applicant assessee by issuing another notice on 29.12.2022 sent through ITBA portal. In response to this notice applicant has not furnished any reply nor submitted any documents / details. Therefore, the present application is disposed of on the basis of material available on record. The details available on record are peripheral and the response get back in nature and the crucial information about the accounts are not available on record. However, F.Y. 2018-19, 2019-20 and 2020-21 these are available on record but for F.Y. 2021-22 the applicant trust has not I.T.A No. 161/Rjt/2023 A.Y. 2023-24 Junagadh District Cricket Association Junagadh vs. PCIT 3 submitted anything. In view of this the genuineness of the activities does not establish due to non-compliance of notice dated 08.12.2022 and 29.12.2022. It is further stated that Section 12AB makes it clear that before granting registration under the Section the authority has to satisfy about the genuineness and the activities and also to verify the activities in consonance with the object of the trust. Since, the assessee has failed to file documentary evidence to enable the authority and satisfy about the genuineness of the activities. The authority unable to grant registration as present application in Form No. 10AB for the registration is hereby rejected. 4. Falling aggrieved with the order of the ld. PCIT, dated 19.03.2023 the assessee is in appeal before us. 5. During the course of hearing, the assessee could not reply to the notice of the Ld. CIT(E) due to non-receipt of notices. That Ld. A.R. requested that assessee be given an opportunity of hearing, the assessee shall furnish all requisite documents before the Ld. CIT(E) so as to enable assessee to grant the necessary registration u/s. 12A of the Act to which the assessee is legally entitled to, looking into the activities carried out by the assessee trust. Accordingly, it was submitted that in the interest of justice the matter may kindly be restored to the file of Ld. CIT(E) for de-novo consideration. 6. On the contrary, the ld. D.R. has not objected to the submission made by the ld. A.R. 7. We have heard both the parties and perused all the relevant material available on record. In view of the above facts, looking into the submissions made by A.R. of the assessee that because of non-receipt of the notice for I.T.A No. 161/Rjt/2023 A.Y. 2023-24 Junagadh District Cricket Association Junagadh vs. PCIT 4 hearing the assessee trust could not reply to notice. The prayer of the Ld. A.R. for an opportunity may kindly be granted to explain the case before Ld. CIT(E). All documents relating to registration of trust have been submitted on website of the Department. Therefore, we set-aside the order of the ld. CIT(E) remit the matter back to the file of ld. CIT(E) for fresh adjudication on merits, after affording opportunity of being heard to the assessee. We direct the assessee to submit relevant details/documents/evidences, if any, as required by the Ld. CIT(E) for disposal of the appeal. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 04-07-2024 Sd/- Sd/- (DR. A. L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY Rajkot; Dated: 04/07/2024 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Rajkot. 6. Guard file. By order/आदेश से, Assistant Registrar/Sr. P.S./P.S. ITAT, Rajkot