Seva - Ek Prayas, Panchkula V. CIT (Exemptions), Chandigarh

ITA 173/CHANDI/2023

AI Insights

The case involves two appeals by Seva - Ek Prayaas against the orders of the CIT (Exemptions), Chandigarh, which had rejected the trust's applications for registration under sections 12AB and 80G(5) of the Income Tax Act, 1961. The CIT (E) had dismissed these applications primarily due to non-prosecution and lack of compliance from the assessee in providing necessary documents and details as requested. The Tribunal noted that the CIT (E) had not considered the merits of the case or the material on record, leading to the decision to remand the matter for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128409 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-09-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 28-03-2023
• Other Referred Cases: S. Velu Palandar Vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSAM
• Assessee Lawyers: PRESIDENT OF TRUST
• Section: 12A; 12AA; 10(23C)

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA Nos. 173 & 174/CHD/2023 Ǔनधा[रण वष[ / Assessment Year : 2022-23 Seva – Ek Prayaas, 17, Sector 15, Panchkula Hayrana Vs. बनाम The CIT (Exemptions), Chandigarh èथायी लेखा सं./ PAN No.: ABTAS0581K अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Pankaj Gupta, President of Trust राजèव कȧ ओर से/ Revenue by : Smt. Kusam, CIT DR स ु नवाई कȧ तारȣख/Date of Hearing : 21.09.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 21.09.2023 आदेश/Order Per A.D. Jain, Vice President: These are assessee’s appeals against the separate orders of the ld. CIT (Exemptions), Chandigarh, dated 13.03.2023 and 14.03.2023, for the Assessment Year 2022-23. 2. Briefly, the facts of the case as per the impugned order in ITA No. 173/Chd/2023 are that the Assessee filed an application for registration u/s 12A (1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter 173 & 174-Chd-2023 – Sewa Ek Prayaas, pkl 2 called 'the Act') on 12.09.2022. In order to examine and verify the objects of the Assessee Trust and the genuineness of its activities, a detailed questionnaire was issued electronically to the Assessee on 7.11.2022 requiring the Assessee to furnish the details and documents on-line through e-proceedings on the e-filing portal, by 22.11.2022. Later on, opportunities were also granted to the Assessee through letter issued on 09.12.2022 for furnishing reply by the date fixed, i.e., 20.12.2022 and a part reply was received from the Assessee. Thereafter, a final opportunity was afforded to the Assessee vide letter dated 21.02.2023, fixing the matter on 27.02.2023. However, no compliance in any form was made by the Assessee on the aforesaid occasions except a part reply. as stated above. The ld. CIT (E) observed that in the absence of any submissions made by the Assessee, it was very difficult to verify both the nature of objects and the genuineness of the activities of the applicant and concluded that the queries raised had not been answered satisfactorily by the Assessee. The ld. CIT(E), by placing reliance on various case laws, has rejected the application of the Assessee for registration u/s 12AB of the Act, observing that this rejection and consequent lack of registration will apply for the F.Y. 2022-23 onwards and will also supersede any registration granted u/s 12AB or 12AA of the Act by any authority at any earlier time. 173 & 174-Chd-2023 – Sewa Ek Prayaas, pkl 3 3. At the outset, it has been submitted by the ld. Counsel for the Assessee that the ld. CIT(E) has dismissed the appeal of the Assessee without going into the merits of the case and even without considering the material available on record. It has further been submitted that the order passed by the ld. CIT(E) is a non-speaking order. It is prayed that keeping in view the principles of natural justice, the Assessee may be given a reasonable opportunity of hearing of the appeal before the ld. CIT(E) and the appeal may be directed to be decided on merits. 4. The ld. DR, on the other hand, has placed reliance on the order of the ld. CIT(E). 5. Heard. We have gone through the order of the ld. CIT(E), wherein, the appeal of the Assessee has been dismissed merely on the basis of the non-prosecution by relying on various decisions. We find that the ld. CIT (E), Chandigarh has dismissed the appeal without considering the material available on record, as also without going into the merits of the case. As such, an opportunity of hearing requires to be given to the assessee to represent his case fully before the ld. CIT(E). Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the authority to decide an appeal on merit. 173 & 174-Chd-2023 – Sewa Ek Prayaas, pkl 4 6. In view of the above, finding force in the grievance raised by the Assessee, the matter is remitted to the file of the ld. CIT(E), to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the assessee. The assessee, no doubt, shall cooperate in the fresh proceedings before the ld. CIT (E). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 7. In the result, for statistical purposes, the appeal is treated as allowed. ITA No. 174/Chd/2023 8. In this case, the Assessee e-filed an application under Form No. 10AB on 28.09.2022 for approval under 80G(5). The ld. CIT(E), however, declined the application in the absence of any registration under section 12AB or 10(23) / 10(23C) as mandated by section 80G(5) of the I.T. Act and Rule 11AA of the I.T. Rules. As in the case of rejection of Assessee’s application for registration, here also, the ld. CIT(E) rejected the application ex-parte qua the Assessee without going into merits of the case. 9. Our findings recorded while disposing of ITA No. 173/Chd/2023 are, mutatis-mutandis, squarely applicable to the present appeal also and this appeal is also disposed in the same terms. 173 & 174-Chd-2023 – Sewa Ek Prayaas, pkl 5 10. In the result, for statistical purposes, both the appeals are treated as allowed. Order pronounced on 21. 09.2023. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 21.09.2023 “आर.के.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar