Sunrise Education Trust, Surendranagar V. CIT (Exemptions), Ahmedabad

ITA 1973/AHD/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1826 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: misc
• Appeal Filed On: 18-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 11A; 12AA; 2

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT) BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO.1973/AHD/2018 SUNRISE EDUCATION TRUST C/O.DHIRUBHAI P. CHAVDA AT. TUVA, WADHAN DIST. SURENDRANGAR 363 421. VS. CIT (EXEMPTIONS) AHMEDABAD. ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : SHRI CHIRAG SHAH, AR REVENUE BY : SHRI RITESH PARMAR, CIT-DR / DATE OF HEARING : 22/02/2021 / DATE OF PRONOUNCEMENT: 24/02/2021 !'/ O R D E R PER RAJPAL YADAV, VICE-PRESIDENT: THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD.CIT(EXEMPTIONS), AHMEDABAD DATED 23.8.2018 PASSE D UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961. 2. IN THIS APPEAL, ONLY GRIEVANCE OF THE ASSESSEE-T RUST IS THAT THE LD.CIT(EXEMPTIONS) IS ERRED IN REJECTING APPLICATIO N OF THE ASSESSEE FOR GRANT OF REGISTRATION UNDER SECTION 12AA FOR THE RE ASON OF NON- SUBMISSION OF REQUISITE DETAILS DURING THE PROCEEDI NGS. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST ENGAGED IN EDUCATIONAL ACTIVITIES. FOR GRANT OF REGISTRATIO N OF THE TRUST UNDER ITA NO.1973 /AHD/2018 2 SECTION 12AA OF THE INCOME TAX ACT, IT HAS FILED AN APPLICATION ON 12.02.2018 IN FORM NO.10A UNDER RULE 11A OF THE ACT ALONG WITH REGISTRATION CERTIFICATE ISSUED BY THE CHARITY COMM ISSIONER. VIDE LETTER OF THE DEPARTMENT DATED 10.4.2018 ASSESSEE W AS ASKED TO FURNISH VARIOUS DOCUMENTS AND DETAILS AS MENTIONED IN THE I MPUGNED ORDER. HOWEVER, THE LD.CIT(EXEMPTIONS) NOTED IN HIS IMPUGN ED ORDER THAT THERE WAS NO APPEARANCE ON BEHALF OF THE ASSESSEE N OR ANY DETAILS WERE SUPPLIED TO CONSIDER THE CASE OF THE ASSESSEE, DESP ITE PROVIDING OPPORTUNITY TO THE ASSESSEE. IN THE ABSENCE OF THE DETAILS, THE LD.CIT(E) REJECTED THE APPLICATION OF THE ASSESSEE- TRUST FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX A CT, 1961. AGGRIEVED BY THE ACTION OF THE LD.CIT(E), THE ASSES SEE IS NOW BEFORE THE TRIBUNAL. 4. BEFORE US, THE ASSESSEE HAS FILED PAPER BOOK CON TAINING PAGES FROM 1-59 WHICH ALSO CONTAINED COPY OF REPLY FILED BY THE ASSESSEE BEFORE THE ITO(HQ) DATED 20.8.2018 ALONG WITH ENCLO SURES AND REQUIRED DETAILS. THE SAME WAS ACKNOWLEDGED BY THE DEPARTMENT ON 12.2.2018. THIS PAPER BOOK, AMONGST OTHER, CONTAINE D BANK STATEMENTS, COPY OF FINAL ACCOUNTS FOR THE YEAR END ED ON 31.3.2015 AND AUDITORS REPORT FOR THE FINANCIAL YEAR 2015-16. T HE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT NECESSARY DETAILS FURNISHED BY THE ASSESSEE WERE NOT CONSIDERED BY THE LD.CIT WHILE REJECTING T HE APPLICATION OF THE ASSESSEE. BEFORE PASSING EX PARTE ORDER, THE LD.CIT OUGHT TO HAVE CONSIDERED THE SAME BEFORE REJECTING THE APPLICATIO N OF THE ASSESSEE. HE THEREFORE SUBMITTED THAT THE ASSESSEE MAY BE GIV EN ONE MORE OPPORTUNITY BY RESTORING THE ISSUE TO THE FILE OF T HE LD.CIT FOR ITA NO.1973 /AHD/2018 3 RECONSIDERATION OF ITS APPLICATION. ON THE OTHER H AND, THE LD.DR SUPPORTED THE ORDER OF THE LD.CIT. 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND GONE TH ROUGH THE RECORD CAREFULLY. AS WE NOTED HEREIN, ASSESSEE IS STATED TO BE ENGAGED IN EDUCATIONAL ACTIVITIES. IT HAS REGISTERED WITH C HARITY COMMISSIONER. WE FIND THAT LD.CIT(EXEMPTION) HAS REJECTED APPLICA TION OF THE ASSESSEE FOR GRANT OF REGISTRATION IN THE ABSENCE O F DETAILS, WHICH HE SOUGHT FROM THE ASSESSEE FOR ADJUDICATION. BEFORE US, THE ASSESSEE HAS FILED A PAPER CONTAINING COPIES OF ITS BOOKS ACCOUN TS AND AUDITORS REPORT. THOUGH THE SAME WERE FILED WITH THE OFFICE OF LD.CIT, THEY WERE NOT BEING CONSIDERED BY THE LD.CIT WHILE DECID ING THE APPLICATION OF THE ASSESSEE AND DISMISSED THE APPLI CATION OF THE ASSESSEE EX PARTE . IT SEEMS TO US THAT UPTO THE DATE OF HEARING, TH E ASSESSEE DID NOT FILE THE DETAILS BUT FILED THOSE D ETAILS BEFORE THE DATE OF ORDER. THE LD.CIT HAS GIVEN OPPORTUNITY UPTO 17 .7.2018 AND THEREAFTER, IT APPEARS TO HAVE BEEN RESERVED FOR OR DER, DURING THAT PERIOD, THE ASSESSEE FILED THE DETAILS. IT IS NOT DISCERNIBLE, WHETHER THOSE DETAILS WERE BROUGHT TO THE NOTICE OF LD.CIT OR NOT. THOUGH CAREFREE ATTITUDE OF THE ASSESSEE IN NOT COMPLYING WITH NOTICE OF THE LD.CIT MAY JUSTIFY ACTION OF THE LD.CIT TO SOME EXT ENT, BUT OUTRIGHT REJECTION OF THE APPLICATION FOR GRANT OF REGISTRAT ION WITHOUT CONSIDERING THE SAME ON MERIT AND MATERIAL PLACED O N RECORD, WOULD BURDEN ASSESSEE WITH A HUGE TAX LIABILITY. WE ARE OF THE VIEW, IF PUNISHMENT IN THE SHAPE OF TAX LIABILITY IS WEIGHED WITH NEGLIGENCE ON THE PART OF THE ASSESSEE, THEN, THE PUNISHMENT OF REJEC TION OF APPLICATION BY THE LD.CIT IS DISPROPORTIONATE TO THE NEGLIGENCE. THUS, WE ARE OF THE VIEW THAT ASSESSEE SHOULD HAVE BEEN GIVEN ONE MORE OPPOR TUNITY TO SUPPORT ITA NO.1973 /AHD/2018 4 ITS CASE, AND THEREFORE, IN THE INTEREST OF JUSTICE , IT IS APPROPRIATE FOR US TO SET ASIDE THE IMPUGNED ORDER AND RESTORE THE ISS UE, WHETHER OR NOT TO GRANT REGISTRATION TO THE ASSESSEE UNDER THE INCOME TAX ACT, BACK TO THE FILE OF THE CIT (EXEMPTIONS) FOR FRESH EXAMINATION AND ADJUDICATION THEREON AFTER AFFORDING THE ASSESSEE REASONABLE OPP ORTUNITY OF BEING HEARD IN THE MATTER AND TO FILE DETAILS/SUBMISSIONS REQUIRED, WHICH SHALL BE CONSIDERED BY THE CIT (EXEMPTIONS) BEFORE DECIDING THE ISSUE. ASSESSEE IS ALSO DIRECTED TO COOPERATE AND E NSURE TIMELY SUBMISSION OF DETAILS/CLARIFICATIONS CALLED FOR BY THE CIT (EXEMPTIONS). WE HOLD SO, AND ALLOW GROUNDS OF APPE AL OF THE ASSESSEE FOR STATISTICAL PURPOSE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 24 TH FEBRUARY, 2021 AT AHMEDABAD. S D / - (WASEEM AHMED) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT