Mata Rani Mehtab Kaur Charitable Trust, Barnala V. CIT(Exemption) , Chanigarh

ITA 235/CHANDI/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8400 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-03-2021
• Assessment Year: 2019-2020
• Appeal Filed On: 09-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDEEP DAHIYA
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 12AA; 12; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH BEFORE MRS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI R.L NEGI, JUDICIAL MEMBER ./ ITA NO. 235/CHD/2020 / ASSESSMENT YEAR : 2019-20 MATA RANI MEHTAB KAUR CHARITABLE TRUST, HOUSE NO. B-II/845 FEET STREET, BARNALA THE CIT(EXEMPTIONS) , CHANDIGARH ./PAN NO: AAFTM7913H / APPELLANT /RESPONDENT HEARING THROUGH VIDEO CONFERENCING /ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE / REVENUE BY : SHRI SANDEEP DAHIYA, CIT /DATE OF HEARING : 16.03.2021 / DATE OF PRONOUNCEMENT : .03.2021 / ORDER PER R.L. NEGI, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST T HE ORDER DATED 05.02.2019 PASSED BY THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH (FOR SHORT THE CIT(E)] UNDER SECTION 12 AA(1)(B)(II) OF THE ACT, WHEREBY THE LD. CIT(E) HAS DISMISSED THE APPLI CATION FILED BY THE APPLICANT TRUST U/S 10 OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT'). 2. THE APPLICANT/APPELLANT HAS CHALLENGED THE ACTIO N OF THE LD. CIT(E) ON THE FOLLOWING GROUNDS: 1. THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTIONS ) HAS ERRED IN LAW AS WELL AS ON FACTS IN REJECTING THE APPLICATION 2 ITA NO. 235-C-2020- MATA RANI MEHTAB KAUR CHARITABLE TRUST, BARNALA FOR REGISTRATION FILED UNDER SECTION 12AA OF THE AC T EX-PARTE WHICH IS ARBITRARY & UNJUSTIFIED. 2. THAT THE NOTICES AS MENTIONED IN THE APPELLATE ORDE R WERE NEVER SERVED ON THE ASSESSEE IN PHYSICAL FORM BUT ONLY ON THE PORTAL WHICH IS NOT ACCESSED BY THE SOCIETY MEMBERS AND TH US NO REPRESENTATION COULD BE MADE BEFORE THE COMMISSIONE R OF INCOME TAX (EXEMPTIONS) WHO PASSED AN EX-PARTE ORDE R WHICH IS ARBITRARY AND UNJUSTIFIED. 3. THAT THE LD. COMMISSIONER OF INCOME TAX ( EXEMPTIONS) HAS ERRED IN OBSERVING THAT THE APPLICANT SOCIETY R EQUESTED FOR ADJOURNMENT WHICH IS CONTRARY TO THE FACTS ON RECOR D AND AS SUCH PASSING OF AN EX-PARTE ORDER IS ARBITRARY AND UNJUS TIFIED. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DISPOS ED OFF. 5. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF T HE CASE AND IS, THUS, UNTENABLE. 3. AT THE OUTSET, LD. COUNSEL FOR THE APPLICANT/AP PELLANT SUBMITTED BEFORE US THAT SINCE THE LD. CIT(E) HAS PASSED THE IMPUGNED ORDER IN VIOLATION OF PRINCIPLE OF NATURAL JUSTICE I.E., WIT HOUT AFFORDING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELL ANT, THE SAME IS BAD IN LAW. THE LD. COUNSEL FURTHER SUBMITTED THAT IN THIS CASE NOTICE WAS ISSUED THROUGH ONLINE PORTAL. SINCE, THE PORTAL WAS NOT ACCESSED BY THE MEMBERS OF THE TRUST, THE APPLICANT COULD NO T REPRESENT ITS CASE BEFORE THE LD. CIT(E). THE LD. COUNSEL INVITED OUR ATTENTION TO THE AFFIDAVIT SWORN BY SH. RAM GOPAL BANSAL, PRESID ENT OF THE TRUST IN WHICH THE DEPONENT HAS STATED THAT NO ADJOURNMEN T WAS SOUGHT BY 3 ITA NO. 235-C-2020- MATA RANI MEHTAB KAUR CHARITABLE TRUST, BARNALA THE TRUST. IN ORDER TO SUBSTANTIATE HIS CONTENTION, THE DEPONENT HAS ANNEXED THE COPY OF E-PROCEEDINGS. IN THE LIGHT OF THE AFORESAID FACTS, THE LD. COUNSEL SUBMITTED THAT THE IMPUGNED ORDER MAY BE SET ASIDE AND THE MATTER MAY BE REMITTED TO THE LD. CIT (E) FOR DECIDING ON MERITS AFTER HEARING THE APPLICANT/APPELLANT. 4. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESE NTATIVE (DR) SUPPORTING THE ORDER PASSED BY THE LD. CIT(E), SUBM ITTED THAT SINCE THE NOTICE WAS ISSUED ELECTRONICALLY IN ACCORDANCE WITH THE AMENDED PROVISIONS OF RULE 17A OF THE INCOME TAX RULES AND THE APPELLANT FAILED TO COMPLY WITH THE SAME, THE LD. CIT(E) HAS RIGHTLY REJECTED THE APPLICATION FILED BY THE APPLICANT/APPELLANT. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE PART IES. AS POINTED OUT BY THE LD. COUNSEL FOR THE APPELLANT, THE TRUST COULD NOT RESPOND TO THE QUERIES RAISED BY THE LD. CIT(E) FOR THE REA SON THAT IT DID NOT ACCESS THE PORTAL. SH. RAM GOPAL BANSAL, PRESIDENT OF THE TRUST HAS STATED IN HIS AFFIDAVIT THAT NO ADJOURNMENT WAS SOU GHT BY THE APPLICANT/TRUST. THE COPY OF E-PROCEEDINGS ON RECOR D CORROBORATES THE VERSION OF THE APPLICANT/APPELLANT. THERE IS NO MATERIAL ON RECORD TO INFER THAT THE ASSESSEE HAS DELIBERATELY OMITTED TO ACCESS ON LINE PORTAL OF THE DEPARTMENT. HENCE, WE ARE OF THE CON SIDERED VIEW THAT THE ASSESSEE SHOULD GET AN OPPORTUNITY TO PRESENT I TS CASE BEFORE THE 4 ITA NO. 235-C-2020- MATA RANI MEHTAB KAUR CHARITABLE TRUST, BARNALA LD. CIT(E) IN THE INTEREST OF JUSTICE. WE THEREFOR E, SET ASIDE THE EX- PRATE ORDER PASSED BY THE LD. CIT(E) AND SEND BACK THE S AME TO THE LD. CIT(E) FOR DECIDING THE APPLICATION OF THE APPL ICANT TRUST AFRESH ON MERITS, AFTER AFFORDING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELLANT. FURTHER, WE DIRECT THE APPELLANT/APP LICANT TO COOPERATE WITH THE LD. CIT(E) AND NOT TO SEEK ADJOURNMENTS ON FRIVOLOUS GROUNDS. IN THE RESULT, THE APPEAL FILED BY THE APPELLANT/ APPLICANT IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 23.03.2021. SD/- SD/- ( ANNAPURNA GUPTA) (R.L.NEGI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23.03. 2021 . . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / CIT 4. ( )/ THE CIT(A) 5. , , / DR, ITAT, CHANDIGARH 6. / GUARD FILE / BY ORDER, / ASSISTANT REGISTRAR