PANVEL EDUCATION SOCIETY, Mumbai V. Commissioner of Income Tax (Exemption), Pune, Pune

ITA 238/PUN/2023

AI Insights

The Panvel Education Society filed two appeals against the orders of the Commissioner of Income Tax (Exemption), Pune, which rejected their applications for 12AA registration and 80G recognition. The society argued that these rejections were made in violation of the principles of natural justice, specifically the right to be heard (audi alteram partem). The tribunal noted that the CIT(E) had not provided sufficient opportunity for the society to address the discrepancies noted in their applications, leading to the decision to remand the case for further consideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136298 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-04-2023
• Assessment Year: misc
• Appeal Filed On: 27-02-2023
• Other Referred Cases: St. Paul’s Anglo Indian Education Society (2003) 262 ITR 377 (Pat)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Audi alteram partem
• Section: 80G; 12A; 12AA

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपीलसं. / ITA No. 237 & 238/PUN/2023 Panvel Education Society C/o Dave & Padvekar Associates, 408, Maker Bhavan No-3, 21, Marine Lines, Mumbai PAN:AACTP4658H . . . . . . . अपीलाथी / Appellant बनाम / V/s. Commissioner of Income Tax Officer Exemption, Pune. . . . . . . .प्रत्यथी / Respondent द्वारा / Appearances Assessee by : None Revenue by : Shri Sardar Singh Meena सुनवाई की तारीख / Date of conclusive Hearing : 06/04/2023 घोषणा की तारीख / Date of Pronouncement : 06/04/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; These two appeals of the assessee society are directed against the order of Ld. Commissioner of Income Tax (Exemption), Pune [for short “CIT(E)”] dt. 30/12/2022 passed u/s 12AA(1)(b)(ii) & 80G(5) of the Income-tax Act, 1961 [for short “the Act”] rejecting to grant for 12AA registration and 80G recognition to the appellant society. Panvel Education Society ITA No.237 & 238/PUN/2023 PAN:AACTP4658H ITAT-Pune Page 2 of 5 2. Without duplicating the grounds raised in this bunch of two appeals, it shall suffice to state that, the sole and substantive grievance of the appellant is directed against the rejection of grant of 12AA registration as well as 80G recognition in violation of principle of natural justice. 3. Pithily stated facts borne out of the case records are; the appellant has e-filed an application in Form No 10AB on 06/08/2022 seeking grant of registration u/s 12AA under the category of charitable trust / institution and an application in Form 10AB on 25/08/2022 for recognition u/s 80G of the Act. The Ld. CIT(E) in-order to verify the objects, activities and to ascertain the fulfilment of conditions for granting registration u/s 12AA and recognition u/s 80G of the Act, was put the appellant to a notice dt. 19/12/2022 and 21/01/2023 respectively, which were replied by the assessee society through written submission accompanying certain evidential document through online Income Tax department web portal. Panvel Education Society ITA No.237 & 238/PUN/2023 PAN:AACTP4658H ITAT-Pune Page 3 of 5 4. In so far as the application for 12A is concerned, the Ld. CIT(E) for the want of copy of regular registration granted u/s 12AB of the Act, without further notice to the assessee has rejected the said application. And whereas the application for 80G is concerned, in the event of failure on the part of assessee to respond and offer explanation about the discrepancies communicated, the Ld. CIT(E) without further notice to the assessee has rejected the said application. Thus aggrieved by the aforestated rejections, the appellant is in appeal alleging the action of Ld. CIT(E) as violative of principle of audi alteram partem. 5. In the absence of the appellant, we have heard the Ld. DR; and subject to the provisions of rule 18 of “ITAT Rules”, perused the material placed on record which suggest that, the preliminary submission of the appellant society did not effectively prove its eligibility and claim for grant of approval for 12AA, as a consequence the Ld. CIT(E) without further opportunity to the appellant rejected the Panvel Education Society ITA No.237 & 238/PUN/2023 PAN:AACTP4658H ITAT-Pune Page 4 of 5 application in violation of principle of natural justice as commanded by proviso to section 12AA(1)(b)(ii) of the Act. On a similar line, we also note that, the application for 80G was rejected in violation of proviso to rule 11AA(5) of the Income Tax Rules, 1962. 6. In our considered view, the action of the Ld. CIT(E) suffered from sufficiency of reasonable opportunity to the appellant to refute the rejection vis-à-vis to comply with the requirements sought. It shall be worthy to underlined that the opportunity of being heard should be real, reasonable and effective and same should not be empty formalities, it should not be a paper opportunity, the doctrine of natural justice is a facet of fair play in action and no person shall be saddled with a liability without being heard. In the light of decision of High court of Patna in “St. Paul’s Anglo Indian Education Society (2003) 262 ITR 377 (Pat)” we hold that, rejection of application is unjustified as the assessee was deprived of reasonable opportunity and time to produce all Panvel Education Society ITA No.237 & 238/PUN/2023 PAN:AACTP4658H ITAT-Pune Page 5 of 5 relevant documents to substantiate its claim for registration u/s 12A and recognition of 80G. 7. In the light of aforestated discussion, without commenting on the merits of the case, we deem it fit to remand these matters back to the file of Ld. CIT(E) for according three effective opportunities comply with the direction or the requirements vis-à-vis to refute the rejection to as the case may be. 8. Resultantly, both these appeals of the appellant are ALLOWED FOR STATISTICAL PURPOSE in above terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Thursday 06 th day of April, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 13 th day of April, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT, Pune 4. The Pr. CIT(E), Pune 5. DR, ITAT, Pune “B” Bench, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकरअपीलीय न्य य दिकरण, पुणे / ITAT, Pune.