Historical and Cultural Research Centre, Ahmedabad V. The CIT(Exemption), Ahmedabad

ITA 311/AHD/2023

AI Insights

The case involves the Historical And Cultural Research Centre appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which rejected their application for final registration under Section 12A of the Income Tax Act, 1961. The Tribunal found that the assessee was not properly notified due to an error in the email address used by the Commissioner (Exemptions) to send notices. This led to the assessee's failure to respond to the notices and subsequently to the rejection of their application without proper consideration of the documents they had submitted. The Tribunal's decision to allow the appeal and restore the matter for re-evaluation was based on the principles of natural justice.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125715 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 10-09-2023
• Assessment Year: misc
• Appeal Filed On: 27-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause; Cancellation of registration
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I .T .A . No .3 11 /A h d / 20 23 ( A s se ss m e nt Y e a r : 20 23- 2 4 ) Hi s to r i c a l A n d Cu lt ur a l R e se ar c h C e ntr e , A- 3 1, K r a na va ti So c ie t y, Nr . S WA Na r a ya n M an d i r Na va Na r o da , N r . Sw a m in ar a ya n, N e w N ar od a, Ah me da bad-3 82 34 6 Vs . C o mm i s si o n er o f I n co m e Tax ( Ex e m pt io n ) , Ah me da bad [ P AN N o. A A AT H 8 3 6 4E ] (Appellant) .. (Respondent) Appellant by : Shri Jaimin Shah, A.R. Respondent by: Dr. Darsi Suman Ratnam, CIT D.R. D a t e of H ea r i ng 11.09.2023 D a t e of P r o no u n ce me nt 19.09.2023 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad in DIN & Notice No. ITBA/EXM/F/EXM45/2022- 23/1045560364(1) vide order dated 16.09.2022 passed for Assessment Year 2023-24. 2. The assessee has taken the following grounds of appeal:- “1. That the Ld. CIT(Exemption), Ahmedabad has erred in law and on facts while rejected the registration application U/s 12AB of the Income Tax Act, 1961 and therefore the order passed by CIT(Exemption), Ahmedabad may please be deleted. ITA No. 311/Ahd/2023 Historical And Cultural Research Centre vs. CIT(E) Asst.Year –2023-24 - 2– 2. That the objects of the assessee trust are eligible for registration U/s 12AB of the I.T.Act, 1961 however the application for registration was rejected by Ld. CIT (Exemption), Ahmedabad is against the provision of law. Therefore the registration u/s 12AB of the I.T. Act, 1961 may please be granted. 3. That the appellant has submitted all the details and documents along with application U/s 12AB on 17/09/2021 and on 26/04/2022 respectively, however without considering the documents available on record the provisional registration was cancelled is against the provision of law and as such the order passed for cancellation of registration may restore back to the CIT(Exemption), Ahmedabad for re-adjudication for want of natural justice to the appellant. 4. That the assessee has made application u/s 12AB of the I.T. Act, 1961. However the appellant has sufficient and reasonable cause for not complying the various notices and as such the rejection order passed on 16/09/2022 without issue of physical notice is against the provision of natural justice and such the opportunity of being heard may please be given. 5. The assessee craves leave to add, alter, amend or delete any grounds of appeal before the appeal finally heard and decided.” 3. At the outset, we observe that the appeal of the assessee is time-barred by 154 days. The assessee has filed application for condonation of delay explaining the reason for delay in filing of the present appeal, duly supported by an Affidavit. The assessee submitted that application for final registration under Section 12A of the Act was made on 26.04.2022. The official e-mail ID of the assessee is [e-mail]. The aforesaid e-mail was ITA No. 311/Ahd/2023 Historical And Cultural Research Centre vs. CIT(E) Asst.Year –2023-24 - 3– mentioned in the applications forms filed for registration under Section 12A of the Act. However, the Commissioner (Exemptions), Ahmedabad, issued notices at the email ID at [e-mail]. This email ID does not belong either to the assessee trust or any of the trustees. On verification of records, it was found out that the aforesaid email to which all the notices were sent by the Commissioner (exemption), Ahmedabad belonged to the consultant from whom the assessee trust had initially applied for PAN card. Therefore, all the emails which were sent by the Commissioner (Exemption) were not received by the assessee trust or any of its trustees and therefore, it was for this reason that they failed to comply with the notices issued by the Commissioner (Exemptions) and also the appeal of the assessee against the order passed by the Commissioner (Exemptions) rejecting the application for grant of final registration could not be filed within the stipulated time before ITAT by the assessee. Accordingly, it was submitted that it was because of the aforesaid reasons that the assessee could not file the appeal before ITAT within stipulated time and there was a genuine / bona fide reason for delay in filing of the present appeal. 4. On going to the facts of the instant case, and the arguments put forth before us by the counsel for the assessee, we are of the considered view that there was a genuine / bona fide reason for the delay in filing of the present appeal by the assessee. Accordingly, in the interest of justice, the delay in filing of the present appeal is hereby being condoned. On merits:- 5. On merits, the facts of the case are that the assessee applied for provisional registration under Section 12A of the Act was on 17.09.2021. The ITA No. 311/Ahd/2023 Historical And Cultural Research Centre vs. CIT(E) Asst.Year –2023-24 - 4– provisional registration was granted on 01.10.2021 in Form No. 10AC. The assessee filed application for final registration under Section 12A of the Act in Form No. 10AB on 26.04.2022. However, though the Commissioner (Exemptions), Ahmedabad, issued various notices of hearing, but those notices were sent by the Commissioner (Exemptions), Ahmedabad at an incorrect email ID which belonged to the consultant of the assessee through whom the assessee had filed application for PAN card. Further, the counsel for the assessee submitted that the assessee uploaded the Trust Deed, Activity Note, Trust Certificate, trust accounts etc, along with the previous application (which was enclosed in the paper book produced before us). Therefore, it was submitted that all the documents were available with the Department, however, without considering the same, the application of the assessee dated 26.04.2022 for final registration was dismissed by Commissioner (Exemptions), without considering the documents filed by the assessee trust. 5. In response, the Ld. DR placed reliance on the observations made by Commissioner (Exemptions) in the order, dismissing the application filed by the assessee. 6. We have heard the rival contentions and perused the material on record. Firstly, we observe that the Commissioner (Exemptions), Ahmedabad gave only three dates of hearing to the assessee i.e. 16.07.2022, 03.08.2022 and 16.08.2022. Therefore, it is seen that the entire proceedings for grant of final registration was initiated and completed within one month only, in which notices were issued to the assessee trust at very short intervals. Secondly, we observe that the Commissioner (Exemptions), Ahmedabad did not make any mention of the documents which were submitted by the applicant trust while dismissing the application filed by the assessee for final grant of registration. ITA No. 311/Ahd/2023 Historical And Cultural Research Centre vs. CIT(E) Asst.Year –2023-24 - 5– Thirdly, it is also seen that the notices were issued by the Commissioner (Exemptions), Ahmedabad at incorrect email ID of the previous consultant and not at the email ID mentioned in the application filed for final / provisional registration by the assessee trust, especially when the application form filed by the assessee mentioned the correct e-mail to which notices were required to be sent. Therefore, in our considered view, the assessee has not been given adequate opportunity to present it’s case on merits, looking into the instant facts. 7. Accordingly, the matter is being restored to the file of the Commissioner (Exemptions), Ahmedabad for de novo consideration after giving due opportunity of hearing to the assessee to present it’s case on merits. 8. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 19/09/2023 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 19/09/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad