Samvedna Charitable Foundation, Narnaul V. CIT Exemptions, Chandigarh

ITA 3041/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8185 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 11-02-2024
• Assessment Year: misc
• Appeal Filed On: 26-10-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MONIKA DHAMI
• Assessee Lawyers: UMA UPADHAYAY
• Keywords: Opportunity of being heard

Judgement Text

ITA No.3041/Del/2023 Samvedna Charitable Foundation vs. CIT Page 1 of 4 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE DR. BRR KUMAR, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No. 3041/Del/2023 Asstt. Year: - Samvedna Charitable Foundation Samvedna Hospital Behind D.C. Residence, Mahendergarh Road, Huda Sector-1, Narnaul, Haryana 123001. PAN AAITS3399A Vs. CIT Exemptions Chandigarh. (Appellant) (Respondent) O R D E R PER ASTHA CHANDRA, JM The appeal filed by the assessee is directed against the order dated 23.01.2023 of the Ld. Commissioner of Income Tax (Exemptions), Chandigarh [“CIT(E)”] whereby the Ld. CIT(E) rejected the assessee’s application for registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (the “Act”) filed on 30.09.2022 in prescribed Form No. 10AB. Assessee by : Ms. Uma Upadhayay, CA Department by: Ms. Monika Dhami, CIT- DR Date of Hearing: 12.02.2024 Date of pronouncement: 22.03.2024 ITA No.3041/Del/2023 Samvedna Charitable Foundation vs. CIT Page 2 of 4 2. The assessee has raised the following grounds: “1. On the facts and circumstances of the case, the order passed by Learned Commissioner of Income Tax (Exemptions), Chandigarh rejecting the application of the assessee for approval under section 12A(1)(ac) (iii) of the Income Tax Act is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, the Ld. CIT(E) has erred both on facts and in law in passing the order exparte despite the fact that non- compliance of the notices was on account of the reasons beyond the control of the assessee. 3. On the facts and circumstances of the case, the Ld. CIT(E) has erred both on facts and in law in passing the order rejecting the application for approval under section 12A(1)(ac)(iii) of the Act. without providing the assessee an opportunity of being heard in violation of principle of natural justice. 4. On the facts and circumstances of the case, the order passed by Id. CIT(E) are in violation of the statutory conditions of the Act and the procedure prescribed under the law and as such the same is bad in the eye of law and liable to be quashed. 5. On the facts and circumstances of the case, Ld. CIT(E) has been erred both on facts and in law in rejecting the application of the assessee for approval u/s 12A(1)(ac) (iii) of the act, despite the assessee has filed the application within the prescribed time limit and fulfilled all the conditions as provided under the Income Tax Act and thus, eligible for registration. 6. On the facts and in the circumstances of the case, Ld CIT(E) erred in rejecting the application for registration u/s 12A(1)(ac) (iii) of the Act, 1961 despite the fact that there is no adverse finding regarding the aims, objects and genuineness of activities of the trust and hence application for registration cannot be rejected.” 3. The appeal of the assessee is late by 217 days. The assessee filed application seeking condonation of delay. The application is supported by an affidavit sworn by the Trustee on 25.10.2023. After considering the submission of the Ld. Representative of the parties, we hereby condone the delay. ITA No.3041/Del/2023 Samvedna Charitable Foundation vs. CIT Page 3 of 4 4. Briefly stated, on receipt of application for registration, the Ld. CIT(E) issued a questionnaire electronically on 10.11.2022 to furnish documents /details online through e-proceedings on e-filing portal by 25.11.2022. This was not responded to. The Ld. CIT(E) gave two more opportunities for compliance which also remained uncomplied with. The Ld. CIT(E) therefore rejected the impugned application for registration. This has brought the assessee before the Tribunal and all the grounds relate thereto. 5. We have heard the Ld. Representative of the parties, considered their arguments, and perused the record. We are of the view that it would be judicially expedient if the matter is restored back to the file of the Ld. CIT(E) for decision afresh on merits in accordance with law after allowing reasonable opportunity of hearing to the assessee who shall co-operate in proceedings before the Ld. CIT(E). We order accordingly. 6. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 22 nd March, 2024. sd/- sd/- (DR. BRR KUMAR) (ASTHA CHANDRA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 22/03/2024 Veena Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi ITA No.3041/Del/2023 Samvedna Charitable Foundation vs. CIT Page 4 of 4 Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order