M/s Healthway Charitable Trust, Panaji V. Commissioner of Income Tax, Exemption, Bengaluru

ITA 259/PAN/2019

AI Insights

The case involves M/s. Healthway Charitable Trust, which appealed against the rejection of their application for approval under section 80G(5)(vi) of the Income Tax Act, 1961, by the Commissioner of Income Tax (Exemptions), Bengaluru. The Trust, registered under section 12AA, had applied for 80G approval but failed to comply with a notice from the CIT (Exemptions) seeking additional information. Consequently, the CIT (Exemptions) rejected the application. The Tribunal found that the CIT (Exemptions) had not provided a reasonable opportunity for compliance, leading to the setting aside of the rejection order and a directive for a re-hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136988 (ITAT-PANAJI)
• Duration Of Justice: 3 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: WT(D)
• Next Hearing Date: 13-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 29-08-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI – VIRTUAL COURT BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.259/PAN/2019 M/s. Healthway Charitable Trust, Healthway Hospital Near Peoples High School, Fontainhas, Mala, Panaji, Goa- 403001. PAN : AABTH3867P Vs. CIT, Exemption, Bengaluru. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the rejection of approval u/s 80G(5)(vi) of the Income Tax Act, 1961 (‘the Act’) by the ld. ld. Commissioner of Income Tax (Exemptions), Bangalore [‘the CIT (Exemptions)’] vide order dated 24.06.2019. 2. Briefly, the facts of the case are that the appellant is a trust registered under the provisions of section 12AA of the Act on 30.11.2015 vide order no. CIT(E)BLR/12A/PNJ- Assessee by : None Revenue by : Shri N. Shrikanth Date of hearing : 14.07.2023 Date of pronouncement : 18.07.2023 ITA No.259/PAN/2019 2 724/AABTH3867P/2015-16. Subsequently, it had sought approval u/s 80G vide application dated 29.12.2018. On receipt of the said application, the ld. CIT (Exemptions) had called for certain information/clarification vide letter dated 06.06.2019 in order to satisfy himself calling upon the appellant to comply with the said details on or before 17.06.2019. The assessee could not comply with the said notice. Therefore, the ld. CIT (Exemptions) vide order dated 24.06.2019 passed an order rejecting the approval u/s 80G(5)(vi) of the Act. 3. Being aggrieved, the appellant is in appeal before us in the present appeal. 4. When the appeal was called on, none appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceed to dispose of the matter after hearing the ld. Sr. DR. 5. We heard the ld. SR and perused the material on record. We had carefully gone through the impugned order. We find that the ld. CIT (Exemptions) had not given reasonable opportunity to comply with the notice issued by him. From the material on record, it would be clear that he had issued only one show-cause notice and without granting reasonable opportunity to comply with the notice passed the impugned order. Therefore, the impugned order passed ITA No.259/PAN/2019 3 by the ld. CIT (Exemptions) suffers from vice of the violation of principles of natural justice. Accordingly, the order passed by the ld. CIT (Exemptions) is hereby set-aside and direct him to pass afresh order after affording a reasonable opportunity of being heard to the appellant. Thus, the ground of appeal filed by the assessee stands partly allowed. 6. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 18 th day of July, 2023. Sd/- Sd/- (S. S. GODARA) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 18 th July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT (Exemptions), Bangalore. 4. DR, ITAT, Panaji. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.