M/s. Aadhyatmik Ashram, Varanasi V. Commissioner of Income Tax (E), Lucknow

ITA 334/LKW/2020

AI Insights

The case involves M/s Aadhyatmik Ashram, which appealed against the decision of the Commissioner of Income Tax (Exemptions), who granted them registration under section 12AA of the Income Tax Act, 1961, but did not accept their claim that their activities were charitable in nature. The appeal was initially filed belatedly, but the delay was condoned due to the impact of the COVID-19 pandemic. The Tribunal found that the CIT (Exemptions) had not provided the appellant a fair opportunity to support their claim of charitable activities and thus set aside the CIT's order, directing a fresh decision to be made.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113253 (ITAT-LUCKNOW)
• Duration Of Justice: 2 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-05-2023
• Assessment Year: misc
• Appeal Filed On: 19-10-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEELA CHOPRA
• Keywords: Condonation of delay; Set aside
• Section: 12AA

Judgement Text

I.T.A. No.334/Lkw/2020 Assessment year:N.A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.334/Lkw/2020 Assessment Year: N.A. M/s Aadhyatmik Ashram, HH-5/155 C-10 Lakshmanpur, Ward Shivpur, Varanasi. PAN:AAGTA0352B Vs. CIT (Exemptions), Lucknow. (Appellant) (Respondent) O R D E R PER ANADEE NATH MISSHRA:A.M. (A) This appeal has been filed against the order of learned Commissioner of Income Tax (Exemptions) [learned “CIT(E)” for short] whereby the appellant was granted registration u/s 12AA of the Income Tax Act, 1961 (“IT Act” for short) “with salient activities as religious activities”; but learned CIT(E) did not specifically accept the assessee’s claim that the activities of the assessee were charitable in nature. (B) This appeal has been filed belatedly. However, the appellant has submitted application for condonation of delay in filing of the appeal, which is supported by affidavit of Shri Chandra Bhooshan Singh, trustee of the appellant trust. Condonation of delay has been sought on the ground that the severity of pandemic (COVID-19) which created Appellants by Shri A. P. Sinha, Advocate Respondent by Smt. Sheela Chopra, CIT (D.R.) Date of hearing 23/05/2023 Date of pronouncement 23/05/2023 I.T.A. No.334/Lkw/2020 Assessment year:N.A. 2 impediment. At the time of hearing, the assessee was represented by Shri A. P. Sinha, Advocate and Revenue was represented by Smt. Sheela Chopra, CIT (D.R.). Learned Counsel for the assessee, at the time of hearing before us, relied on the application filed for condonation of delay (supported by aforesaid affidavit) and made a prayer for condonation of delay in filing of the appeal Learned D. R. for the Revenue did not express any objection to the assessee’s prayer for condonation of delay in filing of the appeal. In view of the foregoing, and in the specific facts and circumstances of the present appeal before us, and further as representatives of both sides are in agreement on this, we condone the delay in filing of this appeal and proceed to decide the appeal on merits. (B.1) At the time of hearing before us, learned Counsel for the assessee drew our attention to the impugned order of learned CIT(A) and highlighted that learned CIT (Exemptions) did not provide any opportunity to the appellant for supporting the claim that the activities of the appellant were charitable in nature. He submitted that the impugned order of learned CIT (Exemptions) should be set aside and the learned CIT (Exemptions) should be directed to pass fresh order in accordance with law after providing reasonable opportunity to the assessee. He further submitted that the assessee is suffering undue hardship because of the impugned order of learned CIT (Exemptions) wherein the charitable character of the assessee was not recognized by learned CIT (Exemptions). He submitted that learned CIT (Exemptions) should be also directed to pass fresh order expeditiously so that the undue hardship being faced by the assessee is mitigated. I.T.A. No.334/Lkw/2020 Assessment year:N.A. 3 (B.2) Learned CIT (D.R.) for the Revenue expressed no objection to the aforesaid submissions and request made by learned Counsel for the assessee. (B.2.1) In view of the foregoing, and in the specific facts and circumstances of the case before us and further as representatives of both sides are in agreement on this, we set aside the impugned order of learned CIT (Exemptions) and we direct the learned CIT (Exemptions) to pass de novo order regarding assessee’s application for registration u/s 12AA of the Act, in accordance with law after providing assessee a reasonable opportunity. We further direct learned CIT (Exemptions) to pass the de novo order within six months from the receipt of this order in the office of learned CIT (Exemptions). (C) In the result, the appeal of the assessee is partly allowed for statistical purposes. (Order pronounced in the open court on 23/05/2023) Sd/. Sd/. (SUDHANSHU SRIVASTAVA) (ANADEE NATH MISSHRA) Judicial Member Accountant Member Dated:23/05/2023 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Assistant Registrar