Confederation of Madhya pramt for Industry service and Trade ,Bhopal, Bhopal V. The CIT Exemption, Bhopal

ITA 338/Ind/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9651 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 25-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S S DESHPANDE
• Keywords: Period of limitation; Set aside
• Section: 10; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (Convened through Virtual Court) BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR & SHRI MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं./I. T. A. No. 338/Ind/2020 C o n fe d e r a ti on of M ad h y a Pr an t f o r I n d u s tr y S er vi ce s an d Tra d e A n an t 9 6 , M a lv i y a N ag ar , Be h in d A ir t e l O f fi c e , Bh op al - 46 20 11 (M . P . ) बनाम/ V s . C o mmis s i on e r of I n c o me T a x ( E x e mp t io n ) I nc o me Ta x O ff ic e, M et r o W al k Bu il di ng, Bi t t a n M a rke t , B ho pa l , M . P . थायी लेखा सं./जीआइआर सं./P A N / G IR N o . : A A D A C 9 8 9 3 P (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से/Appellant by : S h ri S . S . D es hp an de, A . R. यथ क ओर से / Respondent by : Shri P. K. Mitra, CIT. D.R. स ु नवाई क तार ख / D a t e o f H e a r i ng 25/11/2021 घोषणा क तार ख /D a te o f P r o n o u nc e me n t 27 /01 /2022 ORDER PER MAHAVIR PRASAD, JM: The appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Exemption), Bhopal (‘CIT(E)’ in short) dated 30.09.2020 regarding rejection of approval under s.12AA of the Income Tax Act, 1961 (‘the Act’ in short). ITA No. 338/Ind/2020 [Confederation of Madhya Prant for Industry Services and Trade vs. CIT(E)] - 2 - 2. The assessee has raised following grounds as under: “1. That under the circumstances, the order passed by the Learned CIT (Exemption) u/s 12AA(1)(b)(ii) of the Act rejecting the application filed by the assessee and refusing to grant the registration u/s 12AA of the Act is unjustified, illegal and bad in law as it was passed biasdely without affording proper opportunity and without considering the object of the society properly. 2. That under the circumstances, the order passed by the learned CIT (Exemption) u/s 12AA(1)(b)(ii) refusing to grant the registration u/s 12AA of the Act for the reason that the object of the society is not for the people at large and the beneficiaries are limited to a particular group is not correct as the society is meant for the benefit and development of entrepreneurs, enterprises, traders and industrialist of different sectors and hence, working for peoples at large and the beneficiaries are not limited to a particular group. In this reference, reliance is placed on following case laws : (i) CIT Punjab Vs. Textile Manufacturer Association (1972) 83 ITR 247 (P & H) (ii) CIT Vs. Indian Sugar Mills Associaiton (1974) 97 ITR 486 (S C) (iii) CIT Bombay City-2 Vs. Western India Chamber of Commerce Ltd. (1982) 136 ITR 67 (Bombay)” 3. The facts of the case are that the assessee is a society registered with the Registrar of Society, Madhya Pradesh vide Registration No.01/01/01/34808/19 dated 17.01.2019. The income tax return of the society for A.Y. 2019-20 was filed on 30.10.2019. The copy of application for registration u/s 12AA was filed on 16.01.2020 in the prescribed form no. 10A of the I.T. Rules. The first query sheet was issued by the CIT (Exemption), Bhopal on 26.05.2020 fixing the date of hearing on 04.06.2020. In compliance, the assessee requested to the adjournment and the same was granted. On further hearing, the assessee filed a detailed reply on 20.07.2020 covering all the issues point by point as asked in the query sheet. Thereafter, no query sheet was further issued and the assessee was under the impression that being all the compliances has been made, no query remains pending regarding objects of the society or for any other things. Being this is a COVID-2019 pandemic period Government of India vide its Gazetted Notification No.2 of 2020 dated 31.03.2020 and dated 24.06.2020 has extended the limitation till 31.03.2021 for all the pending cases filed u/s 12AA of the Act. Meanwhile, the assessee received the order dated 30.09.2020 ITA No. 338/Ind/2020 [Confederation of Madhya Prant for Industry Services and Trade vs. CIT(E)] - 3 - passed u/s 12AA (l)(b)(ii) of the Act rejecting the application filed by the assessee and refusing to grant the registration u/s 12AA of the Act. 4. We have heard both the parties and gone through the relevant records and impugned order. Hon’ble Supreme Court has passed an order dated 23 rd September, 2021 (in M.A. No. 665 of 2021 in SMW(C) No. 3 of 2020) wherein all the appeals, proceedings and matters pending for adjudication before the judicial/quasi-judicial authorities and in computing the period of limitation for any suit, appeal, application or proceeding, the period from 15.03.2020 till 02.10.2021 shall stand excluded. Consequently, the balance period of limitation remaining as on 15.03.2021, if any, shall become available with effect from 03.10.2021. In cases where the limitation would have expired during the period between 15.03.2020 till 02.10.2021, notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 03.10.2021. In the event the actual balance period of limitation remaining, with effect from 03.10.2021, is greater than 90 days, that longer period shall apply. The period from 15.03.2020 till 02.10.2021 shall also stand excluded in computing the periods prescribed under Sections 23 (4) and 29A of the Arbitration and Conciliation Act, 1996, Section 12A of the Commercial Courts Act, 2015 and provisos (b) and 10 (c) of Section 138 of the Negotiable Instruments Act, 1881 and any other laws, which prescribe period(s) of limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings. 4.1 In our considered opinion, the learned CIT(E) ought to have given sufficient opportunity to the assessee and thereafter should have been passed an order but in this case, no such exercise has been done. In the present case, a cryptic order has been passed by the learned CIT(E) and same is amount to miscarriage of justice. ITA No. 338/Ind/2020 [Confederation of Madhya Prant for Industry Services and Trade vs. CIT(E)] - 4 - 4.2 In view of the above, we set aside this matter to the file of the learned CIT(E), Bhopal to decide this matter after giving ample opportunity to the assessee and pass an order within 90 days from the date of receipt of this order. 5. In the result, appeal filed by the applicant is allowed for statistical purposes. Sd/- sd/- ( MANIS H BORAD) (MAHAVIR PRASAD) ACCOUN TANT MEM BER JUDICIAL MEMBER Ahmedabad: Dated 27 /01/2022 S.K.SINHA आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. राज व / Revenue 2. आवेदक / Assessee 3. संबं)धत आयकर आय ु +त / Concerned CIT 4. आयकर आय ु +त- अपील / CIT (A) 5. /वभागीय 2त2न)ध, आयकर अपील य अ)धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड8 फाइल / Guard file. By order/आदेश से, A s si s st a n t R e g i st r a r , I . T . A . T . , I n d o r e 1.Date of dictation on 21.01.2022 2.Date on which the typed draft is placed before the Dictating Member 24.01.2022 3.Date on which the approved draft comes to the Sr.P.S./P.S. 4.Date on which the fair order is placed before the Dictating Member for pronouncement 5.Date on which the fair order comes back to the Sr.P.S./P.S 6.Date on which the file goes to the Bench Clerk 7.Date on which the file goes to the Head Clerk 8.The date on which the file goes to the Asstt. Registrar for signature on the order 9.Date of Despatch of the Order This Order pronounced in Open Court on 27 /01 /2022