District Adult Education Association, Kota V. CIT(Exemption), Jaipur

ITA 419/JPR/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 6613 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 25-09-2023
• Assessment Year: misc
• Appeal Filed On: 10-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VEDANT AGARWAAL
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

1 ITA NO. 419/JP/2023 DISTRICT ADULT EDUCATION ASSOCIATION, KOTA VS CIT (E), JAIPUR vk;djvihyh; vf/kdj.k] t;iqjU;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR MkWa- ,l-lhrky{eh] U;kf;dlnL; ,oaJhjkBksMdeys'kt;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;djvihy la-@ITA No. 419/JP/2023 fu/kZkj.ko"kZ@AssessmentYear :- 2023-24 District Adult Education Association 13, Prodh Shiksha Bhawan, Jhalawak Road Kota – 324 005 cuke Vs. The CIT (Exemption) Jaipur LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABAD 4888P vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri Vedant Agarwaal, Advocate jktLo dh vksjls@Revenue by: Shri Ajay Malik, CIT-DR lquokbZ dh rkjh[k@Date of Hearing : 28/09/2023 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 11/10/2023 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM The assessee has filed an appeal against the order of the Ld.CIT (Exemption), Jaipur dated29-09-2022 passed under section 12AB and of the Income Tax Act, 1961 raising therein following grounds of appeal:- ‘’1. On the facts and circumstances of the case and in law also, ld. CIT(E), Jaipur grossly erred in rejecting the application for registration u/s 12AB of the Income Tax Act, 1961. 2. On the facts and circumstances of the case and in law also, ld. CIT(E), Jaipur grossly erred in not offering a reasonably opportunity of being heard before rejecting the application for registration. 2 ITA NO. 419/JP/2023 DISTRICT ADULT EDUCATION ASSOCIATION, KOTA VS CIT (E), JAIPUR 3. On the facts and circumstances of the case and in law also, ld. CIT(E), Jaipur grossly erred in not considering the fact that the activities of society are genuine and the society has fulfilled all the necessary conditions of registration.’’ 2.1 At the outset of the hearing, the Bench noted that there is delay 255 days in filing the appeal by the assessee for which the Secretary of the Association filed an application dated 12-09-2023 praying therein that the Chairman of the Association Shri R.P. Gupta was confined to bed rest because of long illness and advice of the Doctor and thus he was suffering from C.A.D. from Nov. 2022 to June 2023 for which the Medical Certificate of the Doctor Shri R.P. Sharma, T.T. Hospital and Research Centre (P) Ltd. Talwandi, Kota has been submitted and to this effect, Shri R.P. Gupta, Chairman of the Association has also submitted an affidavit. 2.2 On the other hand, the ld. DR objected to the condonation application of the assessee and submitted that the Court may decide the issue as deem fit and proper in the circumstances of the present case but the prayer of the assessee is not correct when the institute is running even though the chairmen is ill what is the reason the assessee could not file the appeal in time. 2.3 After hearing both the parties and perusing the materials available on record, the Bench find merit in the condonation application of the assessee as there are medical exigences and considering that aspect of the case we 3 ITA NO. 419/JP/2023 DISTRICT ADULT EDUCATION ASSOCIATION, KOTA VS CIT (E), JAIPUR allow the same in view of the decision of Hon’ble Supreme Court in the case of Collector, land Acquisition vs. Mst. Katiji and Others, 167 ITR 471 (SC) as the assessee is prevented by sufficient cause. 3.1 Apropos grounds of appeal of the assessee, the main grievance of the assessee is that the ld. CIT(E) erred in passing the ex-parte order rejecting the application filed in Form 10AB for seeking registration u/s 12AB of the Act without providing sufficient opportunity of being heard. The ld. AR of the assessee further submitted that ld. CIT(E) has erred in not considering the documents submitted alongwith the application filed online dated 24- 03-2022 in Form No. 10A, on the basis of which department can verify the genuineness of the activities carried out by the trust. Hence, the assessee remained deprived off in seeking registration u/s 12AB of the Act. 3.2 Per contra, the ld. DR as regards the merits of the case supported the order of the ld. CIT(E) and prayed to sustain the same. 3.3 The Bench heard both the parties and perused the materials available on record from which it transpires that the applicant association had filed an application in Form No. 10AB seeking registration u/s 12AB of the Income Tax Act through online on 24-03-2022.Thereafter a letter /Notice No. ITBA/EXM/F/EXM43/2022-23/10446605011) dated 16-08-2022 was issued requiring the applicant to submit certain documents/ explanation by 4 ITA NO. 419/JP/2023 DISTRICT ADULT EDUCATION ASSOCIATION, KOTA VS CIT (E), JAIPUR 31-08-2022. However, no reply was filed online nor anyone attended in person. In view of principles of natural justice, one more opportunity was provided vide letter No ITBA/EXM/F/EXM43/2022-23/1045978722(1) dated 26-09-2022 as final opportunity but this time also none was present on the given date nor any reply was filed by the assesse. Since it is a limitation matter, therefore, the case was decided by the ld. CIT(E) on the basis of material available on record. It is pertinent to mention that the ld. CIT(E) conclusively rejected the application of the assesee seeking registration u/s 12AB of the Act by holding as under:- ‘’07. Based on above discussion, it is clear that the activities of the applicant society are not charitable in nature as it is predominantly carrying out activities of imparting skill development training which is the primary source of income for the applicant Hence the applicant society cannot be held as charitable within the meaning of Section 2(15) of the Income Tax Act, 1961. Based on above, I am satisfied that the applicant trust is not fit for registration and, therefore, registration u/s 12AB is rejected and filed.’’ The Bench does not want to go into the merit of the case but it is imperative that the applicant association 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 trust should be given one more chance to contest the case before the ld. CIT(E) and the assessee Association is 5 ITA NO. 419/JP/2023 DISTRICT ADULT EDUCATION ASSOCIATION, KOTA VS CIT (E), JAIPUR directed to produce all the relevant papers concerning application so filed before the ld. CIT(E) to settle the dispute raised hereinabove. 3.4 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. 4.0 In the result, the appeal of the assessee Association is allowed for statistical purposes. Order pronounced in the open court on 11 /10/2023. Sd/- Sd/- ¼MkWa-,l-lhrky{eh½ ¼ jkBksMdeys'kt;UrHkkbZ ½ (Dr. S. Seethalashmi) (RATHOD KAMLESH JAYANTBHAI) U;kf;dlnL;@Judicial Member ys[kk lnL; @Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 11/ 10/2023 Mishra vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- District Adult Education Association, Kota 2. izR;FkhZ@ The Respondent- CIT(E), Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File (ITA No. 419/JPR/2023) vkns'kkuqlkj@ By order, lgk;diathdkj@Asstt. Registrar