Lukagachha Sthanakmargi Jain Pustakalay, Palanpur V. The CIT (Exemption), Ahmedabad

ITA 295/AHD/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7025 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 04-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 22

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL , B BENCH, AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT AT AHMEDABAD) BEFORE SHRI RAJPAL YADAV , VICE PRESIDENT AND SHRI WASEEM AHMED , ACCOUNTANT MEMBER ./ ITA NO. 295/AHD/2020 / ASSTT. YEAR: N.A LUKAGACH HA STHANAKMARGI JAIN PUSTAKALAY A , 11, JIVANVADI PALANPUR , PALANPUR - 385001 . PAN : AAATL0996L VS. CIT(EXEMPTION) , AHMEDABAD . (APPLICANT) ( RESPON D ENT ) ASSESSEE BY : SHRI PARIN SHAH , A.R REVENUE BY : SHRI SANJEEV JAIN , SR .D. R / DATE OF HEARING : 22 / 03 / 2021 / DATE OF PRONOUNCEMENT: 24 / 03 /2021 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE A GAINST THE ORDER OF THE LEARNED COMM ISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD , DATED 03/03/2020 ( IN SHORT LD. CIT (E ) ) ARISING IN THE MATTER OF ASSESSMENT ORDER PASSED UNDER S. 295 OF THE INCOME TAX ACT, 1961 ( HERE - IN - AFTER REFERRED TO AS 'THE ACT'). ITA NO.2 9 5/AHD/2020 A.Y. N.A 2 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER PASSED BY CIT(EXEMPTION) IS INVALID AND BAD IN LAW AND REQUIRED TO BE QUASHED. 2. LD.CIT(EXEMPTION) ERRED IN LAW AND ON FACTS IN REJECTING APPLICATION IGNORING FACT THAT DOCUMENTS CALLED FOR ARE ALREADY SUBMITTED ALONG WITH APPLICATION IN FORM 10A. LD.CIT(EXEMPTION) OUGHT TO HAVE CONSIDERED THE FACT AND GRA NT THE REGISTRATION. IT BE SO HELD NOW. 3. LD.CIT(EXEMPTION) ERRED IN LAW AND ON FACTS THAT IN RESPECT OF NOTICE DATED 15/01/2020, APPELLANT TRUST SUBMITTED ITS REPLY ON 17/01/2020 AND AGAIN IN RESPECT OF NOTICE DATED 28/01/2020, APPELLANT TRUST SUBMITTED ITS REPLY ON 05/02/2020 AND BOTH ABOVE REPLY ARE VERY WELL AVAILABLE ON E - PROCEEDING PORTAL. 4. LD.CIT(EXEMPTION) ERRED IN OBSERVING NON - COMPLIANCE IGNORING FACTS THAT ALL DETAILS ARE SUBMITTED ON E - PROCEEDING PORTAL AND ACCORDINGLY LD.CIT(EXEMPTION) OUGHT T O HAVE GRANTED THE REGISTRATION. IT BE SO HELD NOW. 3 . THE ONLY ISSUE RAISED BY THE ASSESSEE IS THAT THE ''LD. CIT ( E )'' ERRED IN REJECTING THE APPLICATION MADE U/S 12AA(1)(B)(II) OF THE ACT. . 4 . AT THE OUTSET THE LD. AR, FOR THE ASSESSEE SUBMITTED THAT THE ''LD. CIT (E)'' HAS REJECTED THE APPLICATION FOR THE REGISTRATION U/S 12AA(1)(B)(II) OF THE ACT WITHOUT CONSIDERING THE NECESSARY DETAILS FILED IN RESPONSE TO THE NOTICE S ISSUED BY THE ''LD.CIT (E)'' DATED 02/01/2020 AND 05/02/2020. 4 .1 AS PER THE LD . A R, ALL THE DETAILS SUCH AS TRUST D EED, COPIES OF ANNUAL ACCOUNTS, TRUST REGISTRATION CERTIFICATE. PAN AND ADHAR OF THE TRUSTEES , BANK PASSBOOK AND DECLARATION/UNDERTAKING WERE FURNISHED ALONG WITH FORM 10A APPLICATION FORM FOR REGISTRATION. 4 .2 SIMILAR LY, OTHER NECESSARY DETAILS WERE ALSO FURNISHED WITH ''LD.CIT (E)'' VIDE LETTER DATED 15/01/2020, IN RESPONSE TO THE NOTICE ISSUED BY THE ''LD.CIT (E)'' DATED 02/01/2020. ITA NO.2 9 5/AHD/2020 A.Y. N.A 3 4 .3 LIKEWISE, OTHER RELEVANT DETAILS WERE ALSO FILED VIDE LETTER DATED 0 5 /02/2020 IN RESPONSE TO THE NOTICE U/S 12AA(1)(B)(II) OF THE ACT. 4 .4 IN VIEW OF THE ABOVE, THE LD. AR BEFORE US CONTENDED THAT THE MATTER CAN BE SET ASIDE TO THE FILE OF THE ''LD. CIT (E)'' WITH THE DIRECTION TO CONSIDER THE NECESSARY DETAILS ALREADY FILED WITH H IM AFRESH FOR FURTHER ADJUDICATION. 5 . ON THE OTHER HAND THE LD. DR DID NOT RAISE ANY OBJECTION IF THE MATTER IS SET ASIDE TO THE FILE OF ''LD. CIT (E)'' FOR FRESH ADJUDICATION AS PER THE PROVISION OF LAW. 6 . WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE P ROVISO TO SECTION 12AA(1) OF THE ACT REQUIRES TO GRANT AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE REJECTING THE REGISTRATION APPLICATION FILE BY THE ASSESSEE. THUS IT IS CLEA R THAT THE REQUIREMENT OF PROVIDING REASONABLE OPPORTUNITY TO THE ASSESSEE IS EXPRESSLY INBUILT IN LAW ITSELF GOVERNING THE PROCEDURE FOR REGISTRATION. IT IS ALSO EVIDENT FROM THE ORDER OF THE ''LD.CIT (E)'' THAT THE ASSESSEE VIDE LETTER DATE D 03/02/2020 H AS MADE PART COMPLIANCES . T HUS IT IS NOT THE CASE THAT THE ASSESSEE HAS FAILED TO COMPLY THE NOTICES ISSUED BY THE ''LD.CIT (E)'' COMPLETELY. AS, SUCH THE PART COMPLIANCE BY THE ASSESSEE WAS ACCEPTED BY THE LD. CIT(E) HIMSELF IN HIS ORDER. FURTHER, WE ALSO NOTE THAT THE ASSESSEE CLAIMED TO HAVE FILED VARIOUS DE TAILS BEFORE THE LD. CIT(E) BUT THE SAME WERE NOT CONSIDERED BY THE LD. CIT(E). 6 .1 ACCORDINGLY, IN OUR CONSIDERED VIEW THE ''LD. CIT (E)'' SHOULD HAVE GRANTED ONE MORE OPPORTUNITY TO THE ASSESSEE IF HE WAS NOT SATISFIED WITH THE DETAILS FILED BY THE ASSESSEE. ACCORDINGLY, IN THE INTEREST OF JUSTICE AND FAIR PLAY, WE ARE INCLINED TO GIVE MORE OPPORTUNITY TO THE ASSESSEE FOR PLACING ITS POINT S OF CONTENTION BEFORE THE ''LD.CIT (E)'' WITH THE LIBERTY TO FILE THE REQUISITE DETAILS BEFORE HIM. IT IS ALSO DIRECTED THAT THE ASSESSEE SHALL CO - OPERATE IN THE DE NOVO PROCEEDINGS BEFORE THE ITA NO.2 9 5/AHD/2020 A.Y. N.A 4 ''LD.CIT (E)'' WITHOUT FAIL. ACCORDINGLY, THE GROUNDS OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE COURT ON 24 /03 / 2021 AT AHMEDABAD. SD/ - SD/ - (RAJPAL YADAV ) (WASEEM AHMED) VICE PRESIDENT ACCOUNTANT MEMBER (TRUE COPY ) A HMEDABAD; DATED 24 / 03 /2021 MANISH