Bhakti Prem Padma Swetamber Jain Charitable Seva Sansthan , Udaipur V. CIT(E), Jaipur, Jaipur

ITA 179/JODH/2022

AI Insights

The case involves Bhakti Prem Padma Swetamber Jain Charitable Seva Sansthan, which appealed against the decision of the CIT (Exemption), Jaipur, denying their registration under section 12AA of the Income Tax Act. The CIT (E) had rejected the application due to non-compliance in providing required documents. The Tribunal noted the absence of the assessee's representative during the hearing but considered the circumstances, including the death of a key trustee, which led to non-compliance. The Tribunal decided to remand the case for a fresh decision, emphasizing the need for a fair opportunity for the assessee to comply with the requirements.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122768 (ITAT-JODHPUR)
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-08-2023
• Assessment Year: 2021-2022
• Appeal Filed On: 25-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Reasonable cause; Non compliance; Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No.179/JODH/2022 Assessment Year : 2021-22 Bhakti Prem Padma Swetamber Jain Charitable Seva Sansthan, 702 C/o Man Bai Murdia Hospital Hiran Magari Sector-11 PAN: AAATB1780A Vs CIT (Exemption), Jaipur Appellant / Assessee Respondent / Revenue Assessee by None Revenue by Smt. Alka Rajvanshi Jain, CIT-DR Date of hearing 14.08.2023 Date of pronouncement 18.08.2023 ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of Ld. CIT(E) passed under section 12AA of the Act on 26.03.2021. The assessee has raised the following grounds of appeal:- “1. The impugned order u/s 12AA(1)(b)of the Act dated 26.03.2021 is bad in law and on facts of the case and hence the same may kindly be quashed. 2. The Ld. CIT(E) erred in law as well as on the facts of the case in rejecting the Registration u/s 12AA(1)(b) without providing adequate and reasonable opportunity of being heard to the assessee in gross breach of law. The registration u/s 12AA(1)(b) so denied is contrary to the provisions of law and facts of the case. Hence the same kindly be directed to grant the Registration from the year when the application was filled. ITA No.179 /JODH/2022 Bhati Prem Padma Swetamber jain 2 3. That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be directed to grant the same modify. Also erred in not considering the material facts available in their true perspective and sense. Hence the ld. CIT(E) be directed to grant Registration u/s 12AA from the date of starting. 3.2. That the ld. CIT(E) may also kindly be directed to submit and modify any details/form/applications if any required for re-registering the assessee u/s 12AA, which is/was required for the assessee in the interest of natural justice. 4. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.” 2. In this case, assessee filed application in Form No. 10A seeking registration under section 12AA of the Act on 19 th August, 2020. The Ld. Commissioner of Income Tax (Exemption) gave various opportunities to the assessee and requested assessee to file copy of trust deed, note on activity, copy of bank statement for last three years, copy of income expenditure account balance-sheet for last three years etc,. However, assessee could not submit the said details and hence Ld. Commissioner of Income Tax (Exemption) rejected the application of the assessee. 3. Aggrieved by the same, assessee filed appeal before this Tribunal. ITA No.179 /JODH/2022 Bhati Prem Padma Swetamber jain 3 4. There was a delay in filing appeal before This Tribunal. Assessee filed a condonation petition alongwith the affidavit of the Trustee. On perusal of the affidavit and petition, we are convinced that there was reasonable cause for delay. Hence, we condone the delay. 5. None appeared for assessee on the date of hearing i.e. on 14 th August, 2022. However, a letter requesting adjournment was filed by Mr. Mohit Kumar Naharia, Chartered Accountant, the adjournment request has been rejected by this Bench and we proceeded to decide the case based on the records and Ld. DR’s submission. 6. Heard Ld. DR and perused the records. 7. As per submission of the assessee, one of the Trustee of the assessee expired and he was the person who was looking after the affairs of the assessee. In this facts and circumstances of the case, since Ld. CIT(E) has rejected the application merely on the ground of non compliance, we are of the opinion that there was reasonable cause for non compliance, hence we set aside the order of the Ld. CIT(E) to Ld. CIT(E) for de novo adjudication. Ld. CIT(E) shall provide appropriate opportunity to the assessee before passing order. The assessee shall file all necessary details before Ld. CIT(E). Accordingly, grounds of appeal raised by assessee are ITA No.179 /JODH/2022 Bhati Prem Padma Swetamber jain 4 allowed for statistical purpose. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced on 18 th August, 2023. Sd/- Sd/- (PAVAN KUMAR GADALE) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18/08/2023 Sh. Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) Asstt. Registrar 5. The DR 6. Guard File Jodhpur Bench ITA No.179 /JODH/2022 Bhati Prem Padma Swetamber jain 5 S. No Details Date Initials Designation 1 Draft dictated on 8.8.2023 Sr. PS/PS 2 Final Draft placed before author 9.8.2023 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on .8.2023 Sr. PS/PS 7 Date of uploading of Order .8.2023 Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order