Alka Periwal Charitable Trust , Ahmedabad V. CIT (Exemption ) Ahmedabad, Ahmedabad

ITA 23/SRT/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1434 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Appeal Filed On: 30-03-2021
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SURESH K KABRA
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA NO.23/SRT/2021 (AY-2020-21) ITA NO.24/SRT/2021 (AY-2020-21) (H EARING IN VIRTUAL COURT) ALKA PERIWAL CHARITABLE TRUST, 502, RUSHABH APARTMENT, B/H KAKADIA COMPLEX, GHOD DOD ROAD, SURAT-395001 PAN : AAITA0371Q VS CIT (EXEMPTION), ROOM NO.609, FLOOR-6, AAYAKAR BHAVAN, (VEJALPUR), NR. SACHIN TOWER, 100 FOOT ROAD, ANANDNAGAR-PRAHLADNAGAR ROAD, AHMEDABAD-380015. ASSESSEE/ APPELLANT REVENUE/RESPONDENT ASSESSEE BY SHRI SURESH K. KABRA CA REVENUE BY SH. RITESH MISHRA CIT - DR DATE OF HEARING 24 .06.2021 DATE OF PRONOUNCEMENT 24 .06.2021 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THESE TWO APPEALS BY ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDER OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD [HEREINAFTER REFERRED TO AS LD. CIT(E)] DATED 09.03.2021 & 04.03.2021, WHEREIN THE APPLICATIONS OF ASSESSEE FOR SEEKING REGISTRATION UNDER SECTION 12AA AND 80G WERE REJECTED. THE ASSESSEE APPLIED FOR GRANTING REGISTRATION UNDER SECTION 80G & 12AA OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT], BOTH THE APPLICATIONS WERE DISMISSED BY LD CIT(E) ON IDENTICAL OBSERVATION. THEREFORE, WITH THE CONSENT OF PARTIES, BOTH THE APPEALS WERE ITA NOS. 23 & 24/SRT/2021 ALKA PERIWAL CHARITABLE TRUST 2 CLUBBED, HEARD AND ARE DECIDED BY CONSOLIDATED ORDER TO AVOID THE CONFLICTING DECISION. FOR APPRECIATION OF FACT, THE FACT IN ITA NO. 23/SRT/2021 IS TREATED AS LEAD CASE. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: THE LD. CIT(E) WAS NOT JUST AND PROPER ON THE FACTS OF THE CASE AND IN LAW IN REJECTING THE APPLICATION OF THE TRUST FOR REGISTRATION U/S 80(G).* (* WRONGLY MENTIONED 12AA.) 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CHARITABLE TRUST. THE ASSESSEE APPLIED FOR REGISTRATION OF TRUST UNDER SECTION 80G(5) ON 03.09.2020. ON RECEIPT OF APPLICATION, THE LD. CIT(E) ISSUED NOTICE FOR SEEKING CERTAIN DETAILS ABOUT THE ACTIVITIES UNDERTAKEN BY THE ASSESSEE. THE LD. CIT(E) IN PARA-4 OF THE ORDER NOTED THAT IN RESPONSE TO THE NOTICE, NEITHER THE ASSESSEE FILED ANY DETAILS NOR SOUGHT ANY ADJOURNMENT. THE LD CIT(E) FURTHER RECORDED THAT AGAIN NOTICE WAS ISSUED ON 26.10.2020 AND FURTHER ON 15.02.2021 THROUGH ITBA PORTAL ON THE EMAIL ADDRESS GIVEN BY THE ASSESSEE-TRUST. IN RESPONSE TO THE SAID NOTICE AGAIN, THE ASSESSEE HAS NOT FURNISHED ANY DOCUMENT OR INFORMATION. THEREFORE, THE LD. CIT(E) PROCEEDED TO CONSIDER THE APPLICATION ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THE LD. CIT(E) AFTER CONSIDERING THE MATERIAL ON RECORD TOOK HIS VIEW THAT GENUINENESS OF ACTIVITIES IS NOT ESTABLISHED BY THE ASSESSEE AND FURTHER THAT ASSESSEE HAS NOT BEEN GRANTED ITA NOS. 23 & 24/SRT/2021 ALKA PERIWAL CHARITABLE TRUST 3 REGISTRATION UNDER SECTION 12AA OF THE ACT. ACCORDINGLY, THE ASSESSEE IS NOT ELIGIBLE FOR APPROVAL UNDER SECTION 80G(5) AND DISMISSED THE APPLICATION. 3. THE OTHER APPLICATION FILED UNDER SECTION 12AA OF THE ACT WAS ALSO DISMISSED WITH SIMILAR OBSERVATION THAT THE ASSESSEE DESPITE SERVING NOTICE TO ITBP PORTAL HAS NOT FURNISHED THE EVIDENCE REGARDING GENUINESS OF ACTIVITIES. THUS, AGGRIEVED BY THE ORDER OF LD. CIT(E), THE ASSESSEE HAS FILED BOTH THE AFORESAID APPEALS BEFORE THIS TRIBUNAL. 4. WE HAVE HEARD THE SUBMISSION OF LD. AUTHORIZED REPRESENTATIVE (AR) OF THE ASSESSEE AND LD. DEPARTMENTAL REPRESENTATIVE (CIT-DR) FOR THE REVENUE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. AR OF THE ASSESSEE SUBMITS THAT ASSESSEE HAS NOT RECEIVED ANY NOTICE AS NOTED BY LD. CIT(E) IN THE IMPUGNED ORDER. THE ASSESSEE ON ACCESSING THE ITBA PORTAL FIND THAT THE ADDRESS OF EMAIL THROUGH WHICH NOTICE WAS ALLEGEDLY SEND BY LD. CIT(E) WAS WRONGLY MENTIONED AS MUKUND. [e-mail] , HOWEVER, THE EMAIL ADDRESS OF ASSESSEE IS [e-mail] . THE LD. AR FOR THE ASSESSEE, ACCORDINGLY SUBMITS THAT DUE TO MENTIONING WRONG EMAIL ADDRESS, NO NOTICE WAS RECEIVED BY ASSESSEE AND THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FOR NOT RESPONDING TO THE NOTICE ISSUED BY LD. CIT(E). THE LD. AR FOR THE ASSESSEE SUBMITS THAT ASSESSEE HAS GOOD CASE ON MERIT FOR SEEKING REGISTRATION UNDER SECTION 80G AS WELL AS SECTION 12AA OF THE ACT AND IS LIKELY TO SUCCEED, IF THE ASSESSEE IS GIVEN OPPORTUNITY TO FURNISH COMPLETE ITA NOS. 23 & 24/SRT/2021 ALKA PERIWAL CHARITABLE TRUST 4 DETAILS AND THE APPLICATIONS OF ASSESSEE ARE CONSIDERED ON MERIT. THE OBJECTION OF ASSESSEE IS CHARITABLE AND ACTIVITIES CARRIED OUT BY ASSESSEE IN PURSUANCE OF OBJECT ARE GENUINE. THE LD. AR FOR THE ASSESSEE PRAYED THAT BOTH THE MATTER MAY BE RESTORED TO THE FILE OF LD. CIT(E) FOR CONSIDERING THE APPLICATION AFRESH. TO SUPPORT HIS CONTENTION THE LEARNED AR FOR THE ASSESSEE ALSO FILED COPY OF SCREEN SHOT OF ITBA PORTAL. 5. ON THE OTHER HAND, THE LD. CIT-DR FOR THE REVENUE SUPPORTED THE ORDER OF LD. CIT(E). ON CONFRONTING ABOUT THE WRONG EMAIL ADDRESS AS THE LD. AR OF THE ASSESSEE FURNISHED THE SCREENSHOT OF ITBA PORTAL. THE LD. CIT-DR SUBMIT THAT THE BENCH MAY TAKE DECISION AS PER THE DISCRETION AND IN ACCORDANCE WITH LAW. 6. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTIES AND PERUSED THE RECORD. WE FIND THAT THE ASSESSEE FILED APPLICATION UNDER SECTION 80G & 12AA OF THE ACT ON 03.09.2020 IN PRESCRIBED FORM UNDER RELEVANT RULE OF INCOME TAX RULES. FURTHER, WE FIND THAT LD. CIT(E) DISMISSED/REJECTED BOTH THE APPLICATION OF ASSESSEE FOR THE WANT OF SUFFICIENT INFORMATION ABOUT THE GENUINENESS OF ACTIVITIES OF THE ASSESSEE. BEFORE US, THE LD. AR OF THE ASSESSEE VEHEMENTLY SUBMITTED THAT NO NOTICE WAS RECEIVED FROM THE OFFICE OF LD. CIT(E). THE LD. AR OF THE ASSESSEE PLACED ON RECORD THE COPY OF SCREENSHOT OF ITBA PORTAL, WHEREIN THE EMAIL ADDRESS OF ASSESSEE IS NOT MENTIONED AS MUKUND. [e-mail] INSTEAD OF [e-mail] . ITA NOS. 23 & 24/SRT/2021 ALKA PERIWAL CHARITABLE TRUST 5 7. IN OUR VIEW, THE ASSESSEE WAS NOT SERVED NOTICE DUE TO WRONG REFERENCE OF EMAIL ADDRESS, THEREFORE, IN OUR VIEW THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FOR NOT FURNISHING THE REQUIRED DETAILS ABOUT THE GENUINENESS OF ACTIVITIES. HENCE, WE DEEM IT APPROPRIATE TO RESTORE BOTH THE APPEALS TO THE FILE OF LD. CIT(E) TO CONSIDER THE APPLICATION(S) OF ASSESSEE AFRESH. NEEDLESS TO DIRECT THAT BEFORE PASSING THE ORDER, THE LD. CIT(E) HAS GRANT OPPORTUNITY OF HEARING TO THE ASSESSEE AND PASS THE ORDER IN ACCORDANCE WITH LAW. THE ASSESSEE IS ALSO DIRECTED TO FURNISH COMPLETE DETAILS OF ACTIVITIES UNDERTAKEN BY ASSESSEE OR ANY OTHER INFORMATION OR DOCUMENT WHICH MAY BE REQUIRED BY LD. CIT(E). 8. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER ANNOUNCED ON 24 TH JUNE, 2021 AT THE TIME OF HEARING IN VIRTUAL COURT. SD/ SD/- ( DR ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER SURAT, DATED: 24/06/2021 /SK, PS COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR 6. GUARD FILE TRUE COPY/ BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, ITAT, SURAT