Sinor Panjrapole, Vadodara V. The CIT(Exemption), Ahmedabad

ITA 337/AHD/2023

AI Insights

The case involves Sinor Panjrapole, a Trust, appealing against the rejection of its application for registration under Section 12AB of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Ahmedabad. The initial rejection was based on discrepancies in the Trust's name across different documents and failure to provide complete documentation as requested by the CIT(Exemption). The Tribunal found that the CIT(Exemption) had not clearly specified the deficiencies in the documents provided by the Assessee and thus decided to remand the case for a fresh evaluation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114165 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-08-2023
• Assessment Year: misc
• Appeal Filed On: 07-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Sinor Panjrapole, Jain Vaga, AT & PO., Sinor, Vadodara Gujarat PAN:AABTS 2265G (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee Represented: Shri Dhinal Shah, A.R. & Shri Bhadresh Gandhakwala, A.R. Revenue Represented: Shri Sudhendu Das, CIT-DR Date of hearing : 23-08-2023 Date of pronouncement : 06-09-2023 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the rejection order dated 28.03.2023 passed by the Commissioner of Income Tax (Exemption), Ahmedabad (in short ‘CIT(E)’) rejecting the application filed in Form No. 10AB for registration of the Trust u/s. 12AB of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). ITA No. 337/Ahd/2023 I.T.A No. 337/Ahd/2023 Page No Sinor Panjrapole Vs. CIT(E) 2 2. The brief facts of the case is that the assessee filed application u/s. 12AB of the Act on 30.09.2022 in Form No. 10AB under Rule 17A of the Income Tax Rules, 1962. The Ld. CIT(E) issued a notice dated 06.12.2022 through ITBA on the e-mail id given by the assessee, requesting to furnish detailed note on the activities carried by the Trust, as well as certain details/documents as mentioned therein. In response to the same, the assessee furnished part details/documents. Therefore one more opportunity was given to the assessee vide notice dated 28.12.2022 to furnish the pending documents/details. The assessee has not replied to the above notice. 2.1. Therefore with the materials available on record, the Ld. CIT(E) found that as per PAN, name of the assessee is “SINOR PANJRAPOLE” whereas the Registration Certificate issued by Assistant Charity Commissioner, Baroda, the name is appearing as “PANJRAPOLE, SINOR”. Though the assessee claimed that it has rectified the name with Charity Commissioner, but correct changes is not affected either in the Registration Certificate or in the PAN data. The assessee being a legal entity, therefore cannot have multiple names. Further the assessee failed to furnish all relevant details/documents called for which was not furnished by the assessee in spite of opportunity given to the assessee and thereby rejected the application for registration u/s. 12AB of the Act. 3. Aggrieved against this rejection order, the Assessee is in appeal before us raising the following Grounds of Appeal: 1. The learned Commissioner of Income-tax (Exemption) ("CIT (Exemption)") erred in rejecting the registration of the Appellant under section 12AB of I.T.A No. 337/Ahd/2023 Page No Sinor Panjrapole Vs. CIT(E) 3 the Act by stating that there is mismatch in the name of Appellant in documents furnished by it without considering the affidavit filed by the Appellant wherein the Appellant has clarified that the Appellant operates in the name of "Sinor Panjrapole" and all the operations of the Appellant are in the name of "Sinor Panjrapole". 2. The learned CIT (Exemption) erred in rejecting the application of registration by stating that the Appellant has failed to furnish documentary evidence so as to satisfy the learned CIT(Exemption) about the genuineness of the activities without appreciating the fact that the Appellant has already furnished substantially all the details which were requested by the learned CIT (Exemption) including a detailed write-up in respect of the activities undertaken along with photographs evidencing the charitable activities undertaken by it. 3. The learned CIT (Exemption) erred in consequentially rejecting the registration application filed by the Appellant under section 80G of the Act considering that the rejection of registration application filed by the Appellant under section 12AB is itself bad in law. 4. Ld. Counsel Shri Dhinal Shah appearing for the assessee submitted before us a Paper Book running to 220 pages wherein correct PAN data of the assessee Trust, Bank Account details, Affidavit of the Trustee, Constitution of the Trust and details submitted before Ld. CIT(E) are filed. Thus the Ld. Counsel submitted that the assessee has rectified the defect in the PAN data and also filed detailed submissions on the nature of activities carried out by the assessee. Therefore Ld. Counsel pleaded one more opportunity be given to the assessee before the Ld. CIT(E), so that the assessee undertake to file all the requisite documents and evidences in support of the case, for grant of registration u/s. 12AB of the Act. 5. Per contra, the Ld. CIT-DR Shri Sudhendu Das appearing for the Revenue supported the order passed by the Ld. CIT(E). However in the interest of Principle of Natural Justice, the matter may be set I.T.A No. 337/Ahd/2023 Page No Sinor Panjrapole Vs. CIT(E) 4 aside back to the file of Ld. CIT(E) for consideration of the documents and pass fresh orders on merits. 6. We have given our thoughtful consideration and perused the materials available on record. Admittedly, the assessee vide its reply letter dated 16-12-2022 furnished details about the Registration Certificate, Trust Deed and Audit Report for three assessment year and further details. However we find that the Ld. CIT(E) has not contravented exact deficiency in the documents submitted by the assessee and exact nature of clarification, explanation required from the assessee, but rejected the registration application u/s. 12AB of the Act. Further the assessee Trust is existing and carried the objects enumerated in the Trust for long time. 6.1. Therefore considering the facts and circumstances of the case, in order to prevent miscarriage of justice, we find it fit and proper to provide one more opportunity of being heard to the assessee in support of its case for registration of the trust u/s. 12AB of the Act. Therefore we dispose of this appeal by restoring this issue to the file of the Ld. CIT(E) with a direction upon him to provide further opportunity of being heard to the assessee and consider the documents, evidences which the assessee would file as per the notice issued by the Ld. CIT(E). Upon considering the entire set of documents and upon affording an opportunity of being heard to the assessee, the Ld. CIT(E) to dispose of the application for grant of registration of the Trust under Section 12AB of the Act with a speaking order. Needless to say if the assessee fails to co-operate I.T.A No. 337/Ahd/2023 Page No Sinor Panjrapole Vs. CIT(E) 5 with the Ld. CIT(E) as directed hereinabove, the Ld. CIT(E) would be at liberty to pass orders strictly in accordance with law. 7. In the result, the appeal filed by the Assessee is hereby allowed for statistical purposes. Order pronounced in the open court on 06 -09-2023 Sd/- Sd/- (WASEEM AHMED) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 06/09/2023 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद