Panjab University Chemical Engineering and Technology, Chandigarh V. CIT (Exemption), Chandigarh

ITA 181/CHANDI/2023

AI Insights

The case involves Punjab University Chemical Engineering and Technology appealing against the order of the Commissioner of Income Tax (Exemptions), Chandigarh, which had rejected their application for registration under section 12AB of the Income Tax Act, 1961. The rejection was based on the assessee's non-compliance with requests for information and documents to verify the genuineness of its activities and the objects of the trust. The Tribunal found that the CIT(E) had dismissed the appeal without considering the material on record or the merits of the case, and thus remitted the matter back for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128411 (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: 17-09-2023
• 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
• Section: 12A; 12AA

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 181/CHD/2023 Ǔनधा[रण वष[ / Assessment Year : 2022-23 Punjab University Chemical Engineering And Technology, Sector 14, Chandigarh 160014 Vs. बनाम The CIT (Exemption), Chandigarh èथायी लेखा सं./ PAN No.: AAFAP3804P अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Parikshit Aggarwal, CA राजèव कȧ ओर से/ Revenue by : Shri Charanjit Singh, CIT DR स ु नवाई कȧ तारȣख/Date of Hearing : 18.09.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 21.09.2023 आदेश/Order Per A.D. Jain, Vice President: This is Assessee’s appeal against the order of the ld. Commissioner of Income Tax, Exemptions, Chandigarh dated 19.01.2023, for the Assessment Year 2015-16. 2. There is a delay of 09 days in filing the appeal. The Assessee, vide its Application for condonation of delay, dated 10.04.2023 had submitted that the delay in filing the appeal was caused as the 181-Chd-2023 – Punjab University Chemical Engineering and Technology, Chandigarh 2 rejection order passed by the ld. CIT(E) for grant of registration had never come to the knowledge of the Assessee and the same was also not served physically by the Department. The Assessee came to know about it while visiting the portal of the Department and observed that order had already been passed. The Assessee immediately downloaded the same and prepared the appeal but meanwhile the time of nine days had already elapsed. It is submitted by the ld. Counsel for the Assessee that there was a bona fide reason which led to the delay in filing the appeal and a request is made to condone the short delay of nine days in filing the appeal. 3. We have considered the facts and reasoning furnished by the Assessee. In view of the explanation and reasoning given by the Assessee, finding that the Assessee was prevented by sufficient cause from filing the Appeal in time, and keeping in view the principles of natural justice, the delay of nine days in filing the appeal is condoned. 4. Briefly, the facts of the case as per the impugned order are that the Assessee filed an application for registration u/s 12A (1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter called 'the Act') on 29.09.2022. 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 10.11.2022 requiring the Assessee to furnish the details and documents on-line 181-Chd-2023 – Punjab University Chemical Engineering and Technology, Chandigarh 3 through e-proceedings on the e-filing portal, by 25.11.2022. Later on, opportunities were also granted to the Assessee through letter issued on 22.12.2022 for furnishing reply by the date fixed, i.e., 30.12.2022 and thereafter, a final opportunity was afforded to the Assessee vide letter dated 11.01.2023, fixing the matter on 13.01.2023. However, no compliance in any form was made by the Assessee on the aforesaid occasions. 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. 5. 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 181-Chd-2023 – Punjab University Chemical Engineering and Technology, Chandigarh 4 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. 6. The ld. DR, on the other hand, has placed reliance on the order of the ld. CIT(E). 7. 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. 8. 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. 181-Chd-2023 – Punjab University Chemical Engineering and Technology, Chandigarh 5 9. In the result, for statistical purposes, the appeal is 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