Green Educational Charitable Trust, Muzaffarnagar V. CIT(E), Lucknow

ITA 399/DEL/2021

AI Insights

The case involves M/s. Green Educational Charitable Trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Lucknow, who had rejected the trust's application for registration under section 12AA of the Income Tax Act, 1961. The rejection was primarily due to the trust's failure to provide required details. The Tribunal noted the trust's grievance about not being given sufficient opportunity to present its case and decided to set aside the CIT(E)'s order, restoring the application for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121288 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 31-01-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 07-04-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Principle of natural justice; Set aside
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No. 399/Del/2021 (Assessment Year : 2020-21) M/s. Green Educational Charitable Trust, Hindan River Bridge, Main Road, Budhana PAN No. AADTG 0004 H Vs. CIT(Exemption) 5 th Floor, South Block, T. C.46V, UP State Construction & Infrastructure Development Corporation, Vibhuti Khand, Gomti Nagar, Lucknow (APPELLANT) (RESPONDENT) Assessee by --None- Revenue by Ms. Sapna Bhatia, CIT-D.R. Date of hearing: 01.02.2023 Date of Pronouncement: 31.03.2023 ORDER PER ANIL CHATURVEDI, AM : This appeal filed by the assessee is directed against the order dated 10.02.2021 of the Commissioner of Income Tax (Exemption), Lucknow relating to Assessment Year 2020-21. 2. Brief facts of the case as culled out from the material on record are as under :- ITA No.399/Del/2021 M/s. Green Educational Charitable Trust vs. CIT 2 3. Assessee is a trust who filed its application for registration of the trust under section 12A(a) of the Act in the office of Commissioner of Income tax (Exemptions), Lucknow. The application for the approval u/s 12AA was rejected by CIT (E), Lucknow vide order dated 10.02.2021 mainly for the reason that assessee did not file the required details called for by him. 4. Aggrieved by the order of CIT(E), Assessee is now in appeal before us and has raised the following grounds:- 1. “That, the impugned order passed by the CIT Exemption, Lucknow U/s 12AA of the Income Tax Act, 1961 is arbitrary. erroneous, unreasonable and opposed to the facts and circumstances of the law. 2. That, the CIT Exemption has erred in passing the impugned order and rejecting the application U/s 12A on the ground, that. the assessee trust has not carried out any activities towards its object, which is highly arbitrary and unjustified and against the principle of natural justice. 3. That, the CIT Exemption has failed to appreciate, that, the assessee trust has performed the construction of the building for the School and also moved an application, before the District Basic Education Officer, for the permission of running school. 4. That, the CIT Exemption has rejecting the application U/s 12AA without appreciating, the term activities, in section 12AA includes, the purposed activities and the registration cannot be refused on the ground, that, no activities are carried out 5. That, the CIT Exemption has erred in not providing the adequate and reasonable opportunity of hearing to the assessee trust to place the details required by CIT Exemption to substantiate its claim during the proceedings. ITA No.399/Del/2021 M/s. Green Educational Charitable Trust vs. CIT 3 6. That, the explanation given and evidence produced, material placed and available on record have not been properly considered and judicially interpreted and the same do not justify the additions/ allowances made.” 5. On the date of hearing none appeared on behalf of the assessee but however the Counsel for the assessee has moved an adjournment application seeking adjournment. The perusal of grounds of appeal reveals that one of the ground raised by the assessee is about inadequate opportunity of hearing granted by CIT(E). In view of the aforesaid ground, we proceed to dispose of the appeals ex parte qua the assessee, after considering the submissions of Learned DR and the material on record. 6. Before us, Ld DR supported the order of lower authorities. 7. From the documents available on record, we find that the sole grievance of the assessee is with respect to the refusal of registration u/s. 12AA of the Act. It is further the grievance of the assessee that sufficient opportunity of hearing was not granted to the assessee. It is therefore prayed that the Assessee be granted one more opportunity to present its case before CIT(E). 8. We have heard the Learned DR and perused the material on record. In the present case we find that the application of registration u/s 12AA of the Act was rejected by CIT(E) mainly for the reason that the Assessee did not file the required details. Considering the prayer that sufficient opportunity of hearing was not granted to the assessee. We are of the view that in the interest ITA No.399/Del/2021 M/s. Green Educational Charitable Trust vs. CIT 4 of justice one more opportunity be granted to Assessee to file the required details. Accordingly, we hereby set aside the impugned order of CIT(E) and restore the application of the assessee to the file of CIT(E) for fresh decision. The assessee is also directed to promptly furnish the documents before the CIT(E) for deciding the issue afresh. Thus the ground of the appeal of the assessee are allowed as above. 9. In the result, the appeal of Assessee is allowed. Order pronounced in the open court on 31.03.2023 Sd/- Sd/- (NARENDER KUMAR CHOUDHRY) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER Date:- 31.03.2023 PY* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI