SHREE ATMANAND JAIN SABHA, YAMUNA NAGAR V. CIT EXEMPTIONS, CHANDIGARH

ITA 267/CHANDI/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5666 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-10-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 30-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Reasonable cause

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 267/CHD/2023 Ǔनधा[रण वष[ / Assessment Year : 2022-23 Shri Atmanand Jain Sabha, 102,Yogesh Nagar, Gali No.4, Yamunanagar-135001 Vs. बनाम The CIT (Exemptions), Chandigarh èथायी लेखा सं./PAN No. AANTS4184J अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : None (Adjournment Application) राजèव कȧ ओर से/ Revenue by : Smt. Kusum, CIT DR स ु नवाई कȧ तारȣख/Date of Hearing : 31.10.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 03.11.2023 आदेश/Order Per A.D. Jain, Vice President: This is assessee’s appeal against the order of the ld. CIT (Exemptions) [in short, ‘CIT(E)’], Chandigarh dated 23.01.2023, for the Assessment Year 2012-13. 2. In this case, an Application dated 25.10.2023 for adjournment has been filed by the ld. Authorised Representative (AR) for the Assessee wherein, it is submitted that the AR of the Assessee 267-Chd-2023 – Shree Atmanand Jain Sabha, Yamunanagar 2 is pre-engaged in meeting Income Tax compliances till 31.10.2023, being the last date to do so, and therefore, is not in a position to attend the case on the date of hearing today, i.e., 31.10.2023 and a request has been made for adjournment for some other suitable date. 3. Since from the records, we notice that the matter can be proceeded with in the absence of the Assessee, the Application for adjournment is rejected, finding that no useful purpose will be served by keeping this appeal pending any further, in the absence of any prejudice being caused to either party. We have also heard the ld. DR and we are proceeding to pass this order. 4. We have gone through the Grounds of appeal and the Statement of Facts furnished by the Assessee and find that the foremost grievance of the Assessee is that the ld. CIT (Exemption) has rejected the Application of the Assessee for Registration of Trust u/s 12AB of the Income Tax Act,1961, without providing proper opportunity of being heard and without proper service of notice to the Assessee. It has been submitted that the Assessee is a Charitable and Religious Society registered under Haryana Registration and Regulation of Societies Act, 2012 and is engaged in charitable activities for the benefit of the public at large, like organizing activities of langar and bhandara, irrespective of caste, colour and creed; that notices to verify the objects and to examine the genuineness of 267-Chd-2023 – Shree Atmanand Jain Sabha, Yamunanagar 3 the activities, which were issued on the portal, remained unnoticed by the registered person and hence, they could not be responded to; that the trust did not get an opportunity of being heard to file the submissions along with supporting documents in support for registration of the Trust; that the profile of the Trust in the portal contained mobile number, email id and contact details of both the primary and the secondary persons, but no intimation by way of notice through email or mobile alert was made to make the Trust aware regarding commencement of registration proceedings against it, though it is the usual practice to make the Assessee aware through email or mobile sms alerts regarding issue of notice, which was not done in this case; that the notice dated 14.2.2023 regarding the proposed adjustment in the Income Tax return, which came on the email was properly responded to within the due date and it was at that time that the Trust became aware of the rejection order passed by the CIT(E); and that therefore, the action of the ld. CIT(E) in rejecting the registration application without affording proper opportunity of being heard is not justified, as the Assessee was prevented from putting in appearance before the CIT(E), by sufficient and reasonable cause, and as such, the Assessee has filed the present appeal before this Tribunal. 267-Chd-2023 – Shree Atmanand Jain Sabha, Yamunanagar 4 5. The ld. DR, on the other hand, has supported the order of the lower authorities. 6. Heard. We have gone through the order of the ld. CIT (E) and find that the ld. CIT(E) has rejected the Application of the Assessee for registration of the Trust by way of passing of ex-parte order dated 23.01.2023, without considering the material available on record, and also without going into the merits of the case. As such, an opportunity of hearing requires to be given to the Assessee to represent his case fully before the ld. CIT(E). Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the authority to decide an appeal on merit. The ld. D.R., though, has placed reliance on the orders of the authorities below, but has she no objection if the matter is remanded to the CIT(E) for adjudication afresh. 7. In view of the above, in the interest of justice, the matter is remitted to the file of the CIT(E), to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(E). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 267-Chd-2023 – Shree Atmanand Jain Sabha, Yamunanagar 5 8. In the result, for statistical purposes, the appeal is treated as allowed. Order pronounced on 31.10.2023. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 03.11.2023 “आर.के.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar