Key Board Welfare Foundation Society, Jaipur V. CIT(E), Jaipur

ITA 287/JPR/2023

AI Insights

The case involves two appeals filed by the Key Board Welfare Foundation Society against the orders of the CIT (Exemption), Jaipur, which rejected the society's applications for registration under section 12AB and for approval under section 80G of the Income Tax Act, 1961. The tribunal noted that the assessee was not given adequate opportunity to present their case in the initial hearings. Consequently, the tribunal decided to restore both appeals to the CIT (Exemption) for a fresh examination, emphasizing the need for a fair hearing and the submission of necessary documents by the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132415 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 22-08-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 03-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 80G; 10(23C)

Judgement Text

vk;djvihyh; vf/kdj.k] t;iqjU;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh laanhixkslkbZ]U;kf;dlnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;djvihy la-@ITA Nos. 287 & 286/JP/2023 fu/kZkj.ko"kZ@AssessmentYear :2023-24 Key Board Welfare Foundation Society Plot No. 278, Sector No. 7, Vidhyadhar Nagar, Jaipur cuke Vs. The CIT (Exemption) Jaipur LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADAK 2400 N vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by : None jktLo dh vksj ls@Revenue by: Shri Rajesh Ojha, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 23/08/2023 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 29 /08/2023 vkns'k@ORDER PER: SANDEEP GOSAIN, JM These are two appeals filed by the assessee against two different orders of the Ld.CIT (Exemption), Jaipur both dated 21-02-2023 passed under section 12AB and 80G of the Income Tax Act, 1961 respectively. The grounds of appeal raised by the assessee in both the appeals are as under:- 2 ITA NO. 287/JP/2023 KEY BOARD WELFARE FOUNDATION SOCIETY VS CIT (E), JAIPUR ITA NO. 287/JP/2023 U/S 12AB of I.T. Act, 1961 ‘’1. Under the fact and circumstances of the case, the ld. CIT(E) has erred in passing dated 21-02-2023 order rejecting the application for registration u/s 12AB ITA NO. 286/JP/2023 U/S 80G of I.T. Act, 1961 ‘’1. Under the fact and circumstances of the case, the ld. PCIT/CIT has erred in passing dated 21-02-2023 order rejecting the application for approval u/s 80G 2.1 None appeared on behalf of the assessee on the date of hearing in spite of service of notice for hearing of the appeal on 23-08-2017. Consequently the Bench is left with no alternative but to decide the appeal on merits, ex parte qua the assessee, after hearing ld. DR and after perusal of the materials available on record. 3.1 Apropos to the ground so raised by the assessee in ITA No. 287/JP/2023, the ld. CIT(E) rejected the assessee’s claim of registration u/s 12AB of the Act by observing as under:- “3.4 Assessee vide Notice dated 28.12.2022 and was given a show causes to submit documents/explanation by 12-01-2023, which is reproduced as under:- ‘’ Whether the institution is registered under Rajasthan Public Trust Act, 1959. If not , please give explanation that why same should not be considered violation of law and accordingly why your application should not be rejected." 3 ITA NO. 287/JP/2023 KEY BOARD WELFARE FOUNDATION SOCIETY VS CIT (E), JAIPUR Further, opportunities were also provided vide notice dated 19-01-2023 and 03-02-2023. However, the assessee has failed to prove that assesse is registered under RPT Act, 1959 as discussed above. In light of above discussion and in the absence of registration under Rajasthan Public Trust Act, 1959, assessee is not eligible for registration u/s 12AB. 04. Genuineness of Activities and non-compliance 4.1 It is important to mention here that while examining the claim of the assessee u/s 12AB of I.T. Act, the Commissioner of Income Tax has been empowered to call for such documents or information from the trust of institution as he thinks necessary in order to satisfy himself about the genuineness of the trust or institution and may also make such inquiries as he may deem necessary in this behalf. Under such powers vested in CIT(E), the applicant was asked to file details like:-  List of donors  Copies of annual documents of the applicant for last three years.  Bills and vouchers of expenses.  Photograph of activities.  Details of social handle.  Digital footprint.  Details of Bank account details of last three years. However, the applicant has failed to comply with the letters, despite being given three opportunities details of which given in para -1. In the absence of such documents, it could not determined whether the applicant is genuinely carrying out charitable activity as per its objects. Therefore, assessee claim of registration u/s 12AB is also liable to rejected on ground of not proving its genuineness of activity. 4 ITA NO. 287/JP/2023 KEY BOARD WELFARE FOUNDATION SOCIETY VS CIT (E), JAIPUR 05. In view of above discussion assessee's claim of registration section 12AB is liable to be rejected and thus being rejected on following grounds:-  Incomplete Form 10AB  Non-registration with RPT Act, 1959.  Genuineness of Activities 3.2 Apropos to the ground so raised by the assessee in ITA No. 286/JP/2023, the ld. CIT(E) rejected the assessee’s claim of exemption u/s 80G(5) of the Act by observing as under:- “1. The applicant filed online application on 26.09.2022 in Form No. 10AB for seeking exemption u/s 80G of the Income Tax Act, 1961. 2. As per rule 11AA of the Income Tax Rule, 1962, the registration u/s 12A/12AA or notification u/s 10(23C) is a precondition for granting approval u/s 80G of the I.T. Act, 1961. Vide this office order No. ITBA/EXM/F/EXM45/2022-23-/1049959818 (1) dated 21-02-2023, the applicant Society/trust/samiti has been denied registration u/s 12AB. Therefore, it is not eligible for exemption u/s 80G of the I.T. Act, 1961. 3. In view of above discussion, the application in form No. 10AB seeking exemption u/s 80G is rejected. The applicant is, however, at liberty to apply afresh after completing the requisite details.” 5 ITA NO. 287/JP/2023 KEY BOARD WELFARE FOUNDATION SOCIETY VS CIT (E), JAIPUR 3.4. Per contra, the ld. DR relied on the orders of the ld. CIT(E). 3.5 We have heard the ld. DR and perused material available on record. The Bench noted that ld. CIT(E) has rejected the applications of the assessee u/s 12AB and u/s 80G(5) of the Act as narrated above in the respective appeals. After going through both the orders of the ld. CIT(E), supra, the Bench feels that the assessee was deprived off availing of adequate opportunity of being heard by the ld. CIT(E) in both the orders (supra). However, the Bench does not want to go into merit of the case but it is imperative that the assessee must be provided adequate opportunity of being heard by the ld. CIT(E). In this view of the matter, the Bench feels that the assessee should be given one more chance to contest the case before the ld. CIT(E) and the assessee is directed to produce all the relevant papers concerning both the applications so filed before the ld. CIT(E) to settle the dispute raised hereinabove. Thus, both the appeals of the assessee are restored to the file of the ld. CIT(E) for afresh adjudication. 3.6 Before parting, we may make it clear that our decision to restore the matter back to the file of the ld. CIT(E) shall in no way be construed as having any 6 ITA NO. 287/JP/2023 KEY BOARD WELFARE FOUNDATION SOCIETY VS CIT (E), JAIPUR reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law. 4.0 In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 29 /08/2023. Sd/- Sd/- ¼jkBksM deys'k t;UrHkkbZ ½ ¼lanhi xkslkbZ½ (Rathod Kamlesh Jayantbhai) (Sandeep Gosain) ys[kklnL;@Accountant Member U;kf;dlnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 29/08/2023 Mishra vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- M/s. Key Board Welfare Foundation Society, Jaipur. 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;dj vk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File (ITA No. 287 & 286/JPR/2023) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar