Sewa Hi Sewa, Panchkula V. CIT (Exemptions), Chandigarh

ITA 170/CHANDI/2023

AI Insights

The case involves two appeals by 'Sewa Hi Sewa', a trust, against the orders of the CIT (Exemptions), Chandigarh, which rejected the trust's applications for registration under sections 12AB and 80G of the Income Tax Act. The appeals were filed on the grounds that the CIT (Exemptions) had erred in not granting the registrations without considering the merits of the case and substantial documents provided by the trust. The trust argued that the non-compliance with some queries was due to a bona fide mistake and that it fulfilled all conditions for the grant of registration. The Tribunal noted that the applications were dismissed in limine due to non-prosecution, as the trust did not receive the notices for the hearings, and thus did not have the opportunity to respond or present its case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135508 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-08-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 27-03-2023
• Laws Referred To: Section 12AB of the Income Tax Act, Section 80G of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bonafide belief; Reasonable cause; Bonafide mistake; Set aside
• Section: 80G

Judgement Text

आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “बी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH ᮰ी संजय गगᭅ, ᭠याियक सद᭭य एवं ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. SANJAY GARG, JM & SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA Nos. 169 & 170/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2022-23 Sewa Hi Sewa 599, Sector 9, Panchkula, Haryana India बनाम The CIT (Exemptions) Chandigarh ̾थायी लेखा सं./PAN NO: ABBTS9748K अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri B.M. Monga, Advocate and Shri Rohit Kaura, Advocate राज᭭व कᳱ ओर से/ Revenue by : Shri Mahesh Thakur, CIT, DR सुनवाई कᳱ तारीख/Date of Hearing : 22/08/2023 उदघोषणा कᳱ तारीख/Date of Pronouncement : 25/08/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : These are two appeals filed by the Assessee against the respective orders of the Ld. CIT(E), Chandigarh wherein the assessee’s application seeking registration under section 12AB and 80G of the Act were rejected. 2. In ITA No. 169/Chd/2023, the Assessee has raised the following grounds of appeal: 1. “That the order of Ld. CIT(E) is against the law and facts of the case. 2. That the Learned CIT(E) has grossly erred in not granting the registration u/s 12AB of the Act, by passing in limine order & not on merits & totally non speaking order and without considering substantial replies and documents of the assessee, duly submitted before the Ld. CIT(E). 3. That the Learned CIT(E) has grossly erred in not granting the registration u/s 12AB due to non-compliance of only some queries/ show cause Notice, that occurred due to bonafide mistake of assessee, despite the fact that assessee has duly filed substantial replies and documents in the proceedings, duly proving its charitable activities. 4. That the learned CIT (Exemptions) did not appreciate that assessee fulfils all the conditions for grant of registration u/s 12AB of the Act and as such the 2 registration as claimed, should have been allowed, particularly when the activities of assessee are charitable and genuine. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard and disposed off.” 3. In ITA No. 170/Chd/2023, the Assessee has raised the following grounds of appeal: “1. That the order of Ld. CIT(E) is against the law and facts of the case. 2. That the Learned CIT(E) has grossly erred in not granting the registration u/s 80G of the Act, by relying upon in limine & not on merits order passed u/s 12AB of the Act, which too has been passed without considering substantial replies & documents of the assessee duly submitted before the Ld. CIT(E). 3. That the learned CIT (Exemptions) did not appreciate that assessee fulfils all the conditions for grant of registration u/s 80G of the Act and as such the registration as claimed, should have been allowed, particularly when the activities of assessee are charitable and genuine. 4. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard and disposed off.” 4. During the course of hearing, the Ld. AR submitted that both these applications have been rejected by the Ld. CIT(E) in limine without deciding the merits of the case on account of non prosecution on behalf of the assessee. It was submitted that the assessee did not receive the notice and therefore was prevented by sufficient cause from attending to the proceedings before the Ld. CIT(E) and in this regard, our reference was drawn to the affidavit filed by the President of the assessee’s trust and the contents thereof reads as under: “I, Ramesh Kumar Aggarwal, S/o Sh. Ram Chander Aggarwal, aged around 63 years, resident of # 599, Sector 9, Panchkula, Haryana, 134109, working as Trustee/ President of the trust namely 'SEWA HI SEWA', do hereby solemnly affirm and declare on oath as under:- 1. That, for the A.Y. 2023-24, the application in Form No. 10AB u/s 12A(1)(ac)(i) was filed online & electronically by the applicant Trust namely 'SEWA HI SEWA". 2. That the deponent was under bonafide belief that the deponent will received the hard copy of any hearing Notice from the office of Ld. CIT(E) and the registered Email of the Trust on the e-portal of the Income Tax Department is '[e-mail]'. 3 3. That the deponent has never received any of the Hearing Notice on its registered email ID from the Office of Ld. CIT(E), as is also clearly discernible from the screen shots of the hearing Notices from the E- portal of the Income Tax Website, however admittedly the hearing Notices were only uploaded on the Income Tax E-portal of the assessee Trust. 4. That the employees of the Trust are neither tech savy and nor were aware that now the deponent or the assessee trust has to regularly see its e-portal for any hearing Notice. Further, whenever the Chartered Accountant of the Assessee trust use to see the Income Tax E-portal of the Assessee trust and founds any hearing Notice then he use to upload the material/ documents and replies on the e-portal of the Income Tax Department. 5. Thus, due to the reason that no hearing Notice was actually received by the deponent and by the Assessee Trust therefore, the aforesaid application was unfortunately could not be represented properly and some of the hearing Notices remained unreplied and unanswered by the deponent and Assessee trust due to which the impugned application in form No. 10AB u/s 12A(1)ac)(ii) of the Act and approval u/s 80G(5) was decided in limine. 6. That, the Chartered Accountant of the Assessee Trust became aware of the in limine order of the Ld. CIT(E), while Checking the Income Tax E- portal of the Assessee in March, 2023. 7. That the Trust 'SEWA HI SEWA', fulfils all the conditions for grant of registration u/s 12AB and 80G of the Act and activities of Assessee Trust are charitable and genuine in nature and it is also doing various charitable activities for the Society at large and therefore even on merits of the case is eligible for registration as claimed. 8. That however, without prejudice to the Grounds of Appeal taken in the Form No. 36 and strictly in the alternative, the deponent prays for remanding the case before the Ld. CIT(E) to be decided on the merits of the case, in the interest of Justice as it will not cause any prejudice to the 'Revenue' and further will serve the cause of justice and will meet the ends of justice and if the case is not remanded back, it would cause immense prejudice and undue hardship to the deponent, and the deponent will have to face multiplicity of the litigation. 9. That the deponent further undertakes and assures that the deponent is very serious in pursuing its applications before Ld. CIT(E) and also undertakes that the judicious time of any Hon'ble authority shall not be abused or wasted and the deponent shall be represented on each and every date, and therefore with folded hands humbly prays the instant applications in form No. 10AB u/s 12A(1)(ac)(ii) of the Act and application for approval u/s 80G(5) i.e. in ITA No. 169 & 170/Chandi/2023 may kindly be remanded back to the CIT(E) to be decided afresh, in the interest of justice. 4 5. It was accordingly prayed that the matter may be set aside to the file of the Ld. CIT(E) to decide the same on merits after providing reasonable opportunity to the assessee. 6. The Ld. DR is heard who has not raised any specific objection where the matter is set aside to the file of the Ld. CIT(E). 7. We have heard the rival contentions and perused the material available on the record. We find that there was reasonable cause for non appearance on behalf of the assessee before the Ld. CIT(E) who has dismissed both the applications filed by the assessee in limine on account of non prosecution without deciding on the merits of the case. Therefore we deem it appropriate to set aside both these matters to the file of the Ld. CIT(E) to decide the same on merits after providing reasonable opportunity to the assessee. 8. In the result, both the above appeals of the Assessee are allowed for statistical purposes. Order pronounced in the open Court on 25/08/2023. Sd/- Sd/- संजय गगᭅ िवᮓम ᳲसह यादव (SANJAY GARG) ( VIKRAM SINGH YADAV) ᭠याियक सद᭭य / JUDICIAL MEMBER लेखा सद᭭य/ ACCOUNTANT MEMBER AG Date: 25/08/2023 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar