MADHYAM LOKSEVA PRATISHTAN , NAGPUR V. COMMISSIONER OF INCOME TAX-EXEMPTION, PUNE

ITA 32/NAG/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 3538 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 20-04-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIYUSH KOLHE
• Assessee Lawyers: HITESH P SHAH
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SANDEEP GOSAIN, JM & SHRI ARUN KHODPIA, AM ITA No. 32/NAG/2021 Under Section 12AA(1)(b)(iii) of I.T. Act, 1961 Madhyam Lokseva Pratishtan Plot No,. 10, 11, Rani Indirabai Bhosle Vihar, Tulshibag Road, Mahal, Nagpur- 440032 Vs. The CIT (Exemption) Room No. 322, 3 rd Floor Income Tax Office, PMT Building, Shanker Seth Road, Pune PAN No.: AAFTM 5694 P Appellant Respondent Assessee by: Shri Hitesh P Shah, CA Revenue by : Shri Piyush Kolhe, CIT-DR Date of Hearing: 20/04/2022 Date of Pronouncement: 28 /04/2022 ORDER PER: SANDEEP GOSAIN, J.M. The assessee trust has filed an appeal against the order of the ld. CIT(Exemptions), Pune dated 22-02-2021 wherein the assessee trust has raised the following grounds:- ‘’1. The ld. CIT(Exemption) was not justified in rejecting the application u/s 12AA of the Income Tax Act, 1961 without appreciating the fact that the assessee could not comply with the notice due to circumstances beyond its control. 2. The ld. CIT(Exemption) ought to have appreciated te prevailing COVID situation and allowed sufficient opportunity to the assesee. 2 ITA No. 32/NAG/2021 Madhyam Lokseva Prathishtan, Nagpur vs CIT ( E ) 2.1 Brief facts of the case are that the assessee trust has made an online application in Form No. 10A for approval of the trust/ institution u/s 12AA of the Act on 30-07-2020 under the category of Charitable Trust/ Institution. The time limit for disposal of the application had been extended to 31-03-2021 as per CBDT Notification No. S.O.2033(E) dated 24-06-2020 read with provision to The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, No. 2 of 2020 dated 31-03-2020. The assessee trust is registered under Bombay Public Trust Act, 1950 with Registration No. F-34716/NAGPUR dated 27-02-2017. The application of the assessee trust was considered by the ld. CIT ( E) alongwith its annexures. However, in order to process the application of assessee trust, the ld. CIT ( E ) through ITBA Portal sent a letter dated 28-08-2020 requiring the assessee trust to upload the certain information/ clarification. A letter dated 03-02-2021 was also sent by the ld. CIT ( E) to the assessee trust giving details therein to furnish various documents/ information in order to verify the genuineness of its activities. However, the desired information/documents were not submitted by the assessee trust on the E-Portal. Thus, the ld. CIT(E) has observed that the assessee trust has failed to furnish the information/ documents as per provisions of Section 12AA(1)(a) of the 3 ITA No. 32/NAG/2021 Madhyam Lokseva Prathishtan, Nagpur vs CIT ( E ) Act as to the genuineness of its activities. In this view of the matter, the ld. CIT ( E) rejected the application of the assessee trust for grant of registration u/s 12A(1)(b)(ii) of the Income Act. 2.2 Aggrieved by the order of the ld. CIT ( E), the assessee trust carried the matter before this Bench praying that the assessee trust could not comply with the directions of the ld. CIT(E) because of COVID- 19 Pandemic and the entire staff was not coming to office as per guidelines of the Govt. In this situation, the assesee trust was not in a position to provide the desired information/documents to the ld. CIT(E). To this effect, the treasurer of the assessee trust has filed an affidavit praying therein that due to COVID-19 Pandemic, the situation was beyond our control and we could not comply with the notice dated 03-02-2021 issued by the ld. CIT ( E). The Ld. AR of the assessee trust during the course of hearing prayed that one more opportunity may be provided to comply with the directions of the ld. CIT(E) and this issue may kindly be restored to the file of the ld. CIT ( E ) for afresh hearing. 2.3 On the other hand, the ld. DR opposed the submissions of the ld. AR of the assessee but prayed that the Court may decide the issue as deem fit and proper in the case. 4 ITA No. 32/NAG/2021 Madhyam Lokseva Prathishtan, Nagpur vs CIT ( E ) 2.4 We have heard both the parties and perused the materials available on record. We find that the ld. CIT (E ) had called for certain information/ clarification from the assessee trust in order to process its application moved u/s 12AA of the Act. However, the assessee trust could not comply with the directions of the ld. CIT ( E) because of the circumstances beyond its control as has been mentioned in the statement of facts and also in the affidavit of the treasurer of the assesse trust. It was categorically submitted by the ld. AR of the assessee that due to COVID-19 epidemic, the office staff of the assessee trust was not attending office and thus the desired information/ clarification could not be submitted before the ld. CIT( E ). We have taken into consideration all these facts and found that in this COVID 19 Pandemic, it was difficult for anyone to provide such information/ clarification and the Govt. had also issued instructions from time to time to the people to remain at home. Taking into consideration all these facts and circumstances of the case, we restore this appeal of the assessee trust back to the file of the ld. CIT (E) for afresh hearing by providing reasonable opportunity of being heard. The assessee trust is also directed to submit the desired information/ clarification before the ld.CIT(E) at the earliest for early disposal of the case. Thus the appeal of the assessee trust is allowed for statistical purposes. 5 ITA No. 32/NAG/2021 Madhyam Lokseva Prathishtan, Nagpur vs CIT ( E ) 3. In the result, the appeal of the assessee is allowed for statistical purposes. Sd/- Sd/- (ARUN KHODPIA) (SANDEEP GOSAIN) Accountant Member Judicial Member Nagpur Dated:- 28 /04/2022 *Mishra Copy of the order forwarded to: 1. The Appellant- The Madhyam Lokseva Pratishtan, Nagpur. 2. The Respondent- The CIT (E), Pune 3. CIT 4. DR, ITAT, Nagpur 5. Guard File (ITA No. 32/Nag/2021) By order, Asst. Registrar