Yoga Prana Energy Research Charitable Foundation, Ahmedabad V. The Commissioner of Income Tax (Exemption), Ahmedabad

ITA 251/AHD/2023

AI Insights

The case involves the Yoga Prana Energy Research Charitable Foundation, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting their application for registration under section 12AB of the Income Tax Act, 1961. The primary contention was that the rejection was against the principles of natural justice as the trust claimed not to have received any notices regarding the non-compliance with the requirements for registration. The Tribunal found merit in the trust's argument that the notices were not received, leading to a decision to set aside the CIT (Exemption)'s order and remand the matter for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133627 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 04-09-2023
• Assessment Year: misc
• Appeal Filed On: 17-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAHUL OJHA
• Keywords: Principle of natural justice; Set aside

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘D’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R.SENTHIL KUMAR, JUDICIAL MEMBER ITA No.251/Ahd/2023 Assessment Year :2023-24 Yoga Prana Energy Research Charitable Foundation 25/A, Nandanvan Apartment-1 Nr.Chandan Party Plot Jodhpur Road, Satellite Ahmedabad. PAN : AAATY 8084 E Vs. CIT (Exemption) Ahmedabad. (Applicant) (Responent) Assessee by : Shri Rahul Ojha, AR Revenue by : Dr.Darsi Suman Ratnam, CIT-DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 0 5 / 0 9 / 2 0 2 3 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 1 3 / 0 9 / 2 0 2 3 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER This appeal has been filed by the Assessee against order passed by the ld.Commissioner of Income Tax(Exemption),(in short CIT(E), Ahmedabad dated 5.3.2023 passed under section 12AB(1)(b) of the Income Tax Act, 1961 [hereinafter referred to as "the Act"]. 2. In this appeal, the grievance of the assessee is against the action of the ld.CIT(Exemption) in rejecting the application for registration of the assessee-trust under section 12A(1)(ac)(iii) of the Act contending it to be against the principle of natural justice, because the assessee had not been served with any notice before ITA No.251/Ahd/2023 2 rejecting its application. This issue is reflected in the following grounds given by the assessee in the appeal memo. “The order passed by the Learned Commissioner of Income Tax (Exemption) under section 12AB(l)(b) of the Income Tax Act rejecting the application for registration of the appellant Trust under section 12A(l)(ac)(iii) is against the principle of natural justice as the notices dated 06.12.2022 and 28.12.2022 calling for documents and information from the appellant trust is never received by the appellant trust on its email ID or physically at its office address or the address of its trustees. This has deprived the appellant trust to submit the documents and information called for by the Learned Commissioner of Income Tax (Exemption) and resulted in rejection of its application for registration of trust. Affidavit of the trustee of the Appellant Trust is relied upon in support of this ground. Accordingly, the appellant trust prays that order dated 05.03.2023 passed under section 12AB(l)(b) rejecting the application for registration of the Appellant Trust be restored to the file of the Commissioner of Income Tax (Exemption) for passing appropriate order after giving opportunity to the Appellant Trust to submit the documents and details called for under section 12AB(1)(b).” 3. With regard to the above issue, we take short note of facts as evident from the documents filed before us and the order of the Ld.CIT(E). That the assessee is a trust and got provisional registration under section 12A(1)(ac)(vi) of the Act. Thereafter, the assessee-trust applied for final registration on 30.9.2022. This application came to be rejected by the ld.CIT(E) on the ground that various notices, issued on 6.12.2022 and 28.12.2022, remained non-complied with and it was held that since the assessee-trust failed to file documentary evidences so as to satisfy about the genuineness of its activities and to enable verification whether these activities are in consonance with its objects, no satisfaction could be arrived to grant certificate of registration. The ld.CIT(E) accordingly rejected the application filed in Form NO.10AB for registration under section 12AB of the Act. Dissatisfied with this order of theld.CIT(E), the assessee is before us. 4. Before us, the assessee filed written submissions pleading inter alia that that the order of rejection passed by the ld.CIT(E) is against the principle of natural justice as the impugned notices allegedly ITA No.251/Ahd/2023 3 issued by the Ld.CIT(E, i.e. notice dated 6.12.2022 and 28.12.2022, calling for documents and information from the Trust, were never received by the assessee trust physically or in assessee’s email.id. The assumption of the ld.CIT(E) of having served the said notices on the assessee-trust were not without any evidence. Before us, the ld.counsel for the assessee filed an affidavit of the Trust stating on oath the above facts. Copy of Form No.10AC with supporting details. The ld.counsel for the assessee accordingly submitted that the impugned order has been passed without any information to the assessee, and therefore clearly is against the principle of natural justice. Therefore, it was prayed that the impugned order dated 5.3.2023 passedunder section 12AB(1)(b) rejecting the application for registration of the assessee-trust be restored to the file of ld.CIT(Exemption) for passing appropriate order after providing opportunity to the assessee to submit documentary evidences to support its request for granting registration, in the interest of justice. 5. On the other hand, the ld.DR supported the order of the ld.CIT(Exemption). 6. We have considered submissions of both the parties. We have also gone through the impugned order of the ld.CIT(Exemption), and also pleadings of the assessee along with support evidences. We find the assessee has sought for registration under section 12AB(1) of the Act in Form No.10AC of the Act. This application was rejected by the ld.CIT(E) on the alleged ground that the assessee has failed to respond to the notices (cited supra) calling for various details in support of Form NO.10AC filed by the assessee. However, the case of the assessee-trust was that, it has never received any such notices either physically at its address or through email.id, issued by ITA No.251/Ahd/2023 4 the ld.CIT(E),and therefore, the trust had no information about the same. We have gone through the affidavit filed by the trustee of the assessee along with supporting documentary evidences. 7. In this context, it is difficult to disbelieve or doubt the version of the assessee-trust of not receiving the impugned notices, given the potential consequence that, non-compliance of the notices would only deprive the assessee from getting its registration, which no assessee would prefer. In the light of the above facts, in the interest of justice, based on the material available on record, and the submissions of the ld.counsel for the assessee, we find it reasonable to accept the explanation of the assessee that the denial of grant of registration was in violation of the principles of natural justice, and matter needs to be re-examined. Consequently, we set aside the order of the ld.CIT(E) and restore the issue back to the file of the ld.CIT(E) to consider the application of the assessee-trust for registration under section 12AB of the Act. The ld.CIT(E) is directed to pass appropriate order after giving fair opportunity of hearing to the assessee-trust and furnish necessary documents in support of its in accordance with law. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the Court on 13 th September, 2023 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad,dated 13/09/2023