PRIYADARSHANI SOLAR MISSION AND WATER SAVING SANSSTHAN , JAIPUR V. Commissioner of income Tax(Exemption), Jaipu

ITA 314/JPR/2023

AI Insights

The case involves Priyadarshani Solar Mission and Water Saving Sansthan, an organization based in Jaipur, which appealed against the order of the Commissioner of Income-tax (Exemptions), Jaipur. The CIT (E) had rejected the organization's application for registration/approval under section 80G(5) of the Income Tax Act, 1961, citing non-compliance in furnishing required documents and information. The tribunal found that although the CIT (E) had provided several opportunities for compliance, the principles of natural justice necessitated a further opportunity for the assessee to present its case and documents. Consequently, the matter was remanded back to the CIT (E) for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132089 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 14-05-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Non compliance
• Section: 80G

Judgement Text

vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH “A”, JAIPUR Jh laanhi xkslkbZ] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;arHkkbZ] ys[kk lnL; ds le{k BEFORE: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 314/JP/2023 Assessment Year : 2023-24. Priyadarshani Solar Mission and Water Saving Sansthan, 4-Kha-23, Housing Board Colony, Shastri Nagar, Jaipur. cuke Vs. Commissioner of Income-tax (Exemption), Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AADTP 0195 N vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by : Shri Sharwan Kumar Gupta, Advocate jktLo dh vksj ls@ Revenue by : Shri Arvind Kumar (CIT) lquokbZ dh rkjh[k@ Date of Hearing : 19.07.2023. ?kks"k.kk dh rkjh[k@ Date of Pronouncement : 7/08/2023. vkns'k@ ORDER PER SANDEEP GOSAIN, J.M. This is an appeal filed by the assessee against the order of ld. CIT (Exemptions), Jaipur dated 16.03.2023 passed under section 80G of the I.T. Act 1961. The grounds raised by the assessee are reproduced below :- “1. The impugned order u/s 80G(5) of the Act dated 16.03.2023 is bad in law and on facts, without providing adequate & reasonable opportunity of being heard, being without jurisdiction and for various other reasons and hence the same may kindly be quashed. 2 ITA No. 314/JP/2023 Priyadarshini Solar Mission and Water Saving Sansthan, Jaipur. 2. The ld. CIT (E) erred in law as well as on the facts of the case in rejecting the application for grant Registration/approval u/s 80G(5) and in not granting Registration/approval. The rejection so made and refusal to grant Registration/approval u/s 80G(5) is contrary to the provisions of law and facts of the case. The same kindly be quashed. 3. That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be quashed. The ld. CIT (E) be directed to grant Registration/approval from the dated of application. 4. The Appellant prays your honors indulgences to add, amend or alter all or any of the grounds of the appeal on or before the date of hearing. 2. As to the facts of the present case, we noticed from the order of the ld. CIT (Exemptions) that the assessee applicant has filed an application in Form No. 10AB dated 30.09.2022 for seeking approval under section 80G(5)(iii) of the I.T. Act, 1961. While processing the application of the assessee, the assessee vide letter dated 02.01.2023 was required to furnish certain documents/explanations with regard to (1) Non-registration with RPT Act, 1959 and (2) Genuineness of Activities and non compliance by 17.01.2023, but no compliance was made by the assessee. A reminder letter was issued vide letter darted 19.01.2023 wherein date of hearing was fixed on 06.02.2023 but again the applicant has requested to adjourn the case and the case was adjourned to 24.02.2023. In compliance the assessee furnished its reply dated 24.02.2023, which were examined and placed on record and some discrepancies were found. Further, the case was finally adjourned to 10.03.2023 intimating it as final opportunity, but this time also the applicant has again requested to adjourn the case. The ld. CIT (E) holding that it is a limitation matter, he decided the case on the basis of material placed on record and the application of the 3 ITA No. 314/JP/2023 Priyadarshini Solar Mission and Water Saving Sansthan, Jaipur. assessee in Form 10AB for approval under section 80G was rejected for non furnishing of the required documents/information. Now the assessee is in appeal before us. 3. We have heard the rival submissions and perused the material available on record. The ld. CIT (E) decided the case of the assessee ex parte by rejecting the application of the assessee in Form No. 10AB for seeking approval under section 80G(5)(iii) on the ground that neither any one appeared on behalf of the assessee on the date of hearing nor furnished the required documents/information as sought from the assessee. Before us, the grievance of the assessee was that the ld. CIT (E) without affording adequate opportunity of being heard rejected its application in Form 10AB, which is in gross breach of principles of natural justice. Before us, the ld. A/R submitted that the ld. CIT (A) decided the case of the assessee ex parte without giving reasonable opportunity of hearing. On the contrary, from the order of the ld. CIT (E), we find that the ld. CIT (E) has given as many as 4 opportunities i.e. on 02.01.2023, 19.01.2023, 07.02.2023 and 04.03.2023. However, keeping in view the circumstances of the case, we are of the considered view that it will appropriate and in the interest of natural justice, to remand the matter back to the file of the ld. CIT (Exemptions) to decide the matter afresh after affording a reasonable opportunity to the assessee society to submit documents as required by the revenue authorities. 4. 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 4 ITA No. 314/JP/2023 Priyadarshini Solar Mission and Water Saving Sansthan, Jaipur. reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT (E) independently in accordance with law. 5. In the result, appeal of the assessee is allowed for statistical purposes Order pronounced in the open court on 7/08/2023. Sd/- Sd/- ¼ jkBkSM+ deys'k t;arHkkbZ] ½ ¼lanhi xkslkbZ½ (RATHOD KAMLESH JAYANTBHAI) (SANDEEP GOSAIN) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 7/08/2023. das/ vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. vihykFkhZ@The Appellant- Priyadarshini Solar Mission and Water Saving Sansthan, Jaipur. 2. izR;FkhZ@ The Respondent-The CIT (Exemptions), Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZ QkbZy@ Guard File {ITA No. 314/JP/2023} vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar