M/S. LOVING PAWS FOUNDATION, JALANDHAR V. COMMISSIONER OF INCOME TAX ( EXEMPTIONS), CHANDIGARH

ITA 224/ASR/2023

AI Insights

The case involves M/s Loving Paws Foundation, a charitable trust, appealing against the orders of the Commissioner of Income Tax (Exemptions), Chandigarh, which rejected their applications for registration under sections 12AA and 80G(5) of the Income Tax Act. The rejections were based on the grounds that the CIT (Exemptions) could not ascertain the objects and activities of the trust due to non-compliance with notices. The appellant argued that they did not receive these notices on their registered email, a claim supported by an affidavit from the trust's director. The tribunal, acknowledging the breach of natural justice, remanded the case for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114718 (ITAT-AMRITSAR)
• Duration Of Justice: 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-08-2023
• Assessment Year: misc
• Appeal Filed On: 02-08-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. Nos. 224 & 225/Asr/2023 Assessment Year: NA M/s Loving Paws Foundation (CINU85300PB2021NPL053070) 575, New Defence Colony Phase No.1 Deep Nagar, Jalandhar-144005 Punjab [PAN: AAECL 5648L] Vs. CIT (Exemption) Room No. 1, 5 th Floor C.R. Building Himalaya Marg Sector 17,Chandigarh (U.T.) 160017 (Appellant) (Respondent) Appellant by : Sh. S. K. Gupta, CA Respondent by: Sh. Amit Jain, CIT- DR Date of Hearing: 21.08.2023 Date of Pronouncement: 28.08.2023 ORDER Per Dr. M. L. Meena, AM: The captioned appeals are filed by the assessee against the separate order of the ld. Commissioner of Income Tax (Exemptions), Chandigarh dated 16.01.2023 & 18.01.2023 wherein the application of the appellant ITA Nos. 224 & 225/Asr/2023 Loving Paws Foundation v. CIT 2 assessee for seeking registration u/s 12AA in 80G are rejected ex-parte qua the assessee. 2. There was a delay of 140 days in filing these appeals on account of non-receipt of the order of rejection of the application for registration u/s 12AA and u/s 80G(5) even on the e-mail address of [e-mail] provided in the income tax return duly supported with affidavit of Sh. Amit Jain Director of the assessee appellant trust attested by notary, Jalandhar, Punjab dated 2 nd Aug., 2023. Considering the bonafide reason for the delay in filing the applications, the said delay is condoned and appeals are admitted for adjudication on merits. 3. At the outset, the ld. Counsel for the assessee submitted that the ld. Commissioner of Income Tax (Exemptions), Chandigarh was not justified in rejecting applications of the assessee for registration u/s 12A(1)(ac)(iii) and 80G(5) of the Income Tax Act without affording adequate opportunity of hearing to the appellant assessee as all three notices mentioned in the impugned order were not received on the registered e-mail id of the assessee and that non service of the notices is evident from the e-filing portal of the Income Tax Department. He further submitted that even the impugned order of the rejections of the assessee’s application refusing to ITA Nos. 224 & 225/Asr/2023 Loving Paws Foundation v. CIT 3 grant registration u/s 12A(1)(ac)(iii) and transfer u/s 80G(5) in absence of registration u/s 12AB thereof were not received on the registered e-mail id. of the assessee (ABP pg. 31). The above stated facts are duly supported in the affidavit of the Director of the Company Sh. Amit Jain who has been managing day to day affairs of the appellant trust which was being formed for charitable purposes (APB pg. 14 & 15). The appellant has pleaded that the matter may be remanded back to the ld. CIT(E) for fresh adjudication. 4. Per contra, the ld. DR stands by the impugned order, however he has no objection to the request of the assessee in view of the principle of natural justice. 5. We have heard the rival contention, perused the material on record and the impugned orders. Admittedly, the appellant assessee trust has not been served with the notices on the registered e-mail id as given on the Income Tax portal (ABP pg. 31). It is noted that the ld. CIT(E) has rejected the application of the assessee for registration u/s 12AB of for non compliance to notices merely stating that it is not possible to ascertain the object and activities carried out by the applicant. Consequently she rejected the application for approval u/s 80G(5) in absence of registration u/s 12AB. Thus, the ld. CIT(E) has rejected both the application of the applicant trust ITA Nos. 224 & 225/Asr/2023 Loving Paws Foundation v. CIT 4 ex-parte per se in a summary manner without discussing the facts of the case and adjudicating the matter on merits by appreciating the facts on the objects and activities of the trust as per law in view of the principles of natural justice. We consider it deem fit to remand back the matter in both the appeals to the ld. CIT(E) to examine the issue afresh as per law after considering the submissions of the appellant assessee on merits of the case as per law. The appellant-assessee is directed to cooperate in the fresh proceedings before the ld. CIT(E). 6. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 28.08.2023 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(Appeals) (4) The CIT concerned (5) The Sr. DR, I.T.A.T. True Copy By Order