SHREE BHIMSHI BAPA CHARITABLE TRUST, KACHCHH V. CIT(E), AHMEDABAD

ITA 420/RJT/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 5235 (ITAT-RAJKOT)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-08-2024
• Assessment Year: misc
• Appeal Filed On: 08-12-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA Nos.419 & 420/RJT/2023 (Physical Hearing) Shree Bhimshi Bapa Charitable Trust, Plot No.89, Ayodhya Nagar, At Mandhvi, Gujarat - 370465 Vs. The CIT (Exemption), Ahmedabad थायीलेखासं./जीआइआरसं./PAN/GIR No.: ABETS8444B (Appellant) (Respondent) Appellant by Shri Kalpesh Doshi, AR Respondent by Shri Shramdeep Sinha, CIT-DR Date of Hearing 05/08/2024 Date of Pronouncement 07/08/2024 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned two appeals filed by the assessee, are directed against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad [in short “Ld. CIT(E)”] dated 19.09.2023 and 27.09.2023 respectively, wherein Ld. CIT(E) rejected assessee’s application filed in Form No.10AB u/s.12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and provisional registration was also cancelled and Ld. CIT(E) also rejected application in Form No.10AB, u/s 80G(5) of the Act. 2. At the outset, Learned Counsel for the assessee submitted that during the proceedings before the Ld. CIT(E), no notices were served on the assessee’s registered e-mail id, therefore assessee could not appear before the Ld. CIT(E) and as a result the Ld. CIT(E) has passed the ex parte order. Page | 2 ITA.419 & 420/RJT/2023 Shree Bhimshi Bapa Charitable Trust Therefore, Ld. Counsel submitted that one more opportunity should be granted to the assessee to plead these two cases before Ld. CIT(E), that is, in respect of ITA Nos. 419 & 420/Rjt/2023. 3. On the other hand, Learned Commissioner of Income-tax – Departmental Representative (Ld. CIT-DR) submitted that notices were getting reflected on the I.T. portal and assessee should have downloaded from there and appear before the Ld. CIT(E). However, the assessee has failed to do so, therefore both the appeals of the assessee may be dismissed. 4. In rejoinder, the Ld. Counsel for the assessee submitted that the notices reflected on the I.T. portal is not the actual service of notice. The notice of hearing should be served on the assessee on his registered e-mail id. 5. We have heard both the parties and perused the material available on record. We find merit on the submission of Ld. Counsel for the assessee, to the effect that if the authority puts the notice on portal, is not a sufficient and does not tantamount to service of notice on the assessee. The assessee has provided his e-mail id to the Department, therefore Ld. CIT(E) ought to have served the notice on the registered e-mail id of the assessee which he has failed to do so and passed the ex parte order without giving an opportunity to the assessee of being heard, which is against the principle of natural justice. Therefore, we note that one more opportunity should be given to the assessee to plead these two cases before the Ld. CIT(E). 6. It is seen that during the proceedings before Ld. CIT(E), the assessee did not submit details and documents before the Ld. CIT(E), therefore, the Ld. CIT(E) passed an ex parte order. We note that assessee could not plead his case successfully before the Ld. CIT(E), as notices for hearing were not served on the assessee. Hence, we are of the view that one more opportunity Page | 3 ITA.419 & 420/RJT/2023 Shree Bhimshi Bapa Charitable Trust should be given to the assessee to plead these two cases before the Ld. CIT(E). We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(E) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the Ld. CIT(E) and remit the matter back to the file of the Ld. CIT(E) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. 7. In the result, both appeals of the assessee are allowed for statistical purposes. Order is pronounced on 07/08/2024 in the open court. Sd/- Sd/- DINESH MOHAN SINHA DR. A. L. SAINI JUDICIAL MEMBER ACCOUNTNAT MEMBER Rajkot दनांक/ Date: 07/08/2024 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File // TRUE COPY // By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot