SHYAM MITRA MANDAL JOGBANI TRUST KHATUSHYAM JI JILA SIKAR, SIKAR V. ITO, WARD-1, SIKAR

ITA 414/JPR/2023

AI Insights

The case involves two appeals filed by Shyam Mitra Mandal Jogbani Trust against the orders of the Commissioner of Income Tax (Exemption), Jaipur, which denied the Trust's applications for registration under section 12AB and exemption under section 80G of the Income Tax Act, 1961. The primary contention of the Trust was the alleged inadequacy of the opportunity provided to them to present their case, which they argued was against the principles of natural justice. The Tribunal noted the procedural oversight and restored the matter for a fresh evaluation, without commenting on the merits of the case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132143 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-09-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 12-06-2023
• 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; 10(23C)

Judgement Text

vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh laanhi xkslkbZ] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;arHkkbZ] ys[kk lnL; ds le{k BEFORE: HON’BLE SHRI SANDEEP GOSAIN, JM & HON’BLE SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 415 & 414/JP/2023 fu/kZkj.k o"kZ@Assessment Year : 2022-23. Shyam Mitra Mandal Jogbani Trust Khatushyam Ji, Jila Sikar, Sikar. cuke Vs. Income Tax Officer, Ward-1, Sikar. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No. ABATS 2928 L vihykFkhZ@Appellant izR;FkhZ@ Respondent fu/kZkfjrh dh vksj l s@ Assessee by : Shri Rajat Choudhary, Advocate. jktLo dh vksj ls@ Revenue by : Shri Arvind Kumar (CIT) lquokbZ dh rkjh[k@ Date of Hearing : 21/09/2023 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 27/09/2023 vkns'k@ ORDER PER: SANDEEP GOSAIN, J.M. These are two appeals filed by the assessee against two different orders of the Ld.CIT (Exemption), Jaipur both dated 22.05.2023 passed under section 12AB and 80G of the Income Tax Act, 1961 respectively. The grounds of appeal raised by the assessee in both the appeals are as under:- ITA NO. 15/JP/2023 U/S 12AB of I.T. Act, 1961 1. That the order passed by ld. Commissioner of Income Tax, Exemption, Jaipur by rejecting application u/s 12AB(1)(b) of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the assessee. 2. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them. 2 ITA NOS. 414 & 415/JP/2023 Shyam Mitra Mandal Jogbani Trust Khatushyam Ji Jila Sikar. ITA NO. 14/JP/2023 U/S 80G of I.T. Act, 1961 1. That the order passed by ld. Commissioner of Income Tax, Exemption, Jaipur by rejecting application u/s 80G(5)(iii) of the I.T. Act, 1961 is wrong, unwarranted and bad in law. Kindly direct to register the assessee. 2. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them. 2. Apropos to the ground so raised by the assessee in ITA No. 415/JP/2023, the ld. CIT(E) rejected the assessee’s claim of registration u/s 12AB of the Act by observing as under:- “2.2 On verification of the application in Form 10AB filed by the applicant, it was found that the application was not complete, and the documents required to be accompanied with Form 10AB were not furnished such as – • Note on activities of the applicant (Rule 17A(2)(k) It is also important to mention here that above so-called details along with some other details were called from assessee vide various notices as mentioned above. However, assessee failed to submit the same. Thus, assessee’s request for registration u/s 12AB is liable to be rejected on ground of incomplete form. 03. Genuineness of Activities 3.1 It is important to mention here that while examining the claim of the assessee u/s 12AB of I.T. Act, the Commissioner of Income Tax has been empowered to call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of the activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf. Under such powers vested in CIT(E), the applicant was asked to file details like:- • List of donors 3 ITA NOS. 414 & 415/JP/2023 Shyam Mitra Mandal Jogbani Trust Khatushyam Ji Jila Sikar. • Bills and vouchers of expenses. • Photograph of activities. • Details of social handle. • Digital footprint. • Details of Bank account details of last three years. However, the applicant has failed to comply with the letters, despite being given three opportunities details of which given in para-1. In the absence of such documents, it could not be determined whether the applicant is genuinely carrying out charitable activity as per its objects. Therefore, assessee claim of registration u/s 12AB is also liable to be rejected on ground of not proving its genuineness of activity. 04. In view of above discussion assessee's claim of registration section 12AB is liable to be rejected and thus being rejected on following grounds:- • Incomplete Form 10AB • Genuineness of Activities 2.1 Apropos to the ground so raised by the assessee in ITA No. 414/JP/2023, the ld. CIT(E) rejected the assessee’s claim of exemption u/s 80G of the Act by observing as under:- “1. The applicant filed online application online on 03.11.2022 in Form No. 10AB for seeking exemption u/s 80G of the Income Tax Act, 1961. 2. As per rule 11AA of the Income Tax Rule, 1962, the registration u/s 12A/12AA or notification u/s 10(23C) is a precondition for granting approval u/s 80G of the I.T. Act, 1961. Vide this office order No. ITBA/EXM/F/EXM45/2023-24/1053049590(1) dated 22-05- 2023, the applicant Society/trust/samiti has been denied registration u/s 12AB. Therefore, it is not eligible for exemption u/s 80G of the I.T. Act, 1961. 3. In view of above discussion, the application in form No. 10AB seeking exemption u/s 80G is rejected. The applicant is, however, at liberty to apply afresh after completing the requisite details.” 4 ITA NOS. 414 & 415/JP/2023 Shyam Mitra Mandal Jogbani Trust Khatushyam Ji Jila Sikar. 3. During the course of hearing, the ld. AR of the assessee in both the appeals mainly submitted that the assessee was not provided adequate opportunity of being heard by the ld. CIT(E) and thus both the orders should be quashed being against the principles of natural justice. 4. Per contra, the ld. DR relied on the orders of the ld. CIT(E). 5. We have heard the rival contentions and perused material available on record. The Bench noted that ld. CIT(E) has rejected the applications of the assessee u/s 12AB and u/s 80G of the Act as narrated above in the respective orders. It is also pertinent to mention that during the course of hearing the ld. AR of the assessee prayed that he was deprived off availing of adequate opportunity of being heard by the ld. CIT(E) in both the orders (supra). The Bench does not want to go into merit of the case but it is imperative that the assessee must be provided adequate opportunity of being heard by the ld. CIT(E). In this view of the matter, the Bench feels that the assessee should be given one more chance to contest the case before the ld. CIT(E) and the ld. AR of the assessee is directed to produce all the relevant papers concerning both the applications so filed before the ld. CIT(E) to settle the dispute raised hereinabove. 6. Before parting, we may make it clear that our decision to restore the matter back to the file of the ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the ld. CIT(E) independently in accordance with law. 5 ITA NOS. 414 & 415/JP/2023 Shyam Mitra Mandal Jogbani Trust Khatushyam Ji Jila Sikar. 7. In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 27/09/2023. Sd/- Sd/- ¼ jkBkSM+ deys'k t;arHkkbZ ½ ¼lanhi xkslkbZ½ (RATHOD KAMLESH JAYANTBHAI) (SANDEEP GOSAIN) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@ Dated:- 27/09/2023. Das/ vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. vihykFkhZ@The Appellant- Shyam Mitra Mandal Jogbani Trust, Khatushyam Ji, Jila Sikar, Sikar. 2. izR;FkhZ@ The Respondent- The ITO Ward -1 Sikar. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur. 6. xkMZ QkbZy@ Guard File {ITA No. 414 & 415/JP/2023} vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar 6 ITA NOS. 414 & 415/JP/2023 Shyam Mitra Mandal Jogbani Trust Khatushyam Ji Jila Sikar.