Smt. Kashiba Pranjivandas Shri Kansara Samaj kalian Trust C/O Naranlal Sanskrutik Bhavan, Zaveri Sadak, Navasari V. CIT(Exemption), Ahmedabad

ITA 474/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7247 (ITAT-SURAT)
• Duration Of Justice: 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-05-2024
• Assessment Year: misc
• Appeal Filed On: 22-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AASHISH POPHARE
• Keywords: Opportunity of being heard; Rule of consistency; Period of limitation; Condonation of delay
• Section: 80G; 274

Judgement Text

आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आ.अ.सं./ITA No.473/SRT/2024 (Hearing in Physical Court) Kansara Kelvani Pracharak Madhyastha Mandal, C/o Naranlal Sanskrutik Bhavan, Zaveri Sadak, Navsari-396 445 [PAN No. AAATK 2537 N] Vs Income Tax Department, CIT(Exemption), Ahmedabad अपीलाथŎ/Appellant ŮȑथŎ /Respondent आ.अ.सं./ITA No.474/SRT/2024 (Hearing in Physical Court) Smt. Kashiba Pranjivandas Shri Kansara Samaj Kalian Trust, C/o Naranlal Sanskrutik Bhavan, Zaveri Sadak, Navsari-396 445 [PAN No. AABTS 3437 Q] Vs Income Tax Department, CIT(Exemption), Ahmedabad अपीलाथŎ/Appellant ŮȑथŎ /Respondent आ.अ.सं./ITA No.475/SRT/2024 (Hearing in Physical Court) Naranlala Parivar Sthapit, Shri M. H. Kansara Medical Trust, C/o Naranlal Sanskrutik Bhavan, Zaveri Sadak, Navsari-396 445 [PAN No. AAATN 1883 A] Vs Income Tax Department, CIT(Exemption), Ahmedabad अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Sujesh C. Suratwala, CA राजˢ की ओर से /Revenue by Shri Aashish Pophare, CIT-DR अपील पंजीकरण/Appeals instituted on 23.04.2024 सुनवाई की तारीख/Date of hearing 08.05.2024 उद्घोषणा की तारीख/Date of pronouncement 13.05.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: ITA No.473, 474 & 475/SRT/2024 2 1. This group of three appeals by group assesses are directed against the separate orders of Ld. Commissioner of Income-Tax (Exemption, Ahmedabad [for short to as “Ld. CIT(E)”] passed under section 80G(5) of Income Tax Act, 1961 (‘the Act’) in rejecting application for approval funds. The applications of assesses were dismissed vide order dated 28.06.2024, 27.05.2023 and 19.09.2023. In all three appeal, the facts are common, their applications were rejected with similar grounds, thus, all the appeals were clubbed, heard together and are decided by common order to avoid the conflicting decisions. For appreciation of facts, the facts in ITA No. 273/Srt/2024 is tread as lead case. 2. Rival submission of both the parties heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee fairly submits that impugned order was passed ld CIT(E) on 26.08.2023 and the appeal before Tribunal was filed on 23.04.2024, thus, there is delay of 240 days in filing appeal before the Tribunal. In fact, the assessee has not received physical copy of order or soft copy on registered e-mail. The assessee trust was unaware of such order till 2 nd week of April, 2024 when the office bearer checked the portal under e-proceedings link through tax consultant, came to know about dismissal/rejection of their application. From the date of knowledge of impugned order, the assessee filed appeal within prescribed period of limitation. There is no intentional or deliberate delay in filing appeal before the Tribunal, rather the assessee was prevented by sufficient cause. The assessee has already filed affidavit of one of its trustee namely Dulipbhai Ratilal Kansara for explaining such delay. The assessee has good case on ITA No.473, 474 & 475/SRT/2024 3 merit and is likely to succeed if the matter is considered on merit. To support his contentions, the ld AR for the assessee relied on the decision of Punjab & Haryana High Court in Mumjal BCU Centre of Innovation & Entrepreneurship Vs CIT [CWP-21028-23 (O&M)] dated 04.03.2024, decisions Supreme Court in Collector of Land Acquisition Vs Mst Katiji 1987 (2)SCC 107 (SC), State of Nagaland Vs Lipoka & others AIR 2005 SC 2191, O. P. Kathpalia Vs Lakhmir Singh AIR 1984 SC 1744(SC) etc. 3. On merit, the ld. AR of the assessee submits that the application of assessee for approval of fund under section 80G(5) was rejected by the ld. CIT(E) by taking view that in response to show cause notice dated 14.04.2023, the assessee has furnished response on 21.04.2023. The assessee has filed Form No.10AB, under section 80G(5) on 02.12.222 wherein it was mentioned that the date of incorporation / creation / registration as 21.05.1953. The Ld. AR for the assessee submits that Ld.CIT(E) granted order for provisional approval in Form No.10AC issued on 16.10.2021 under clause-(iv) of first proviso to sub-section-(5) of Section 80G for the period commencing from 16.10.2021 to assessment year 2024-25. The ld. AR of the assessee submits that in fact no notice as mentioned in the impugned order was served upon the assessee. The assessee has furnished complete details while filing application in Form 10AB on 02/03/2023. The ld. AR of the assessee submits that the assessee has good case on merit and is likely to succeed if the application of assessee is considered on merit. The ld. AR of the assessee while making his submission prayed that their appeal may be allowed. The ld. AR of the assessee submits that the application for ITA No.473, 474 & 475/SRT/2024 4 approval under Section 80G(5) of the Act was rejected by the ld. CIT(E) on the ground that application in Form 10AB is filed on 02.12.2022 and as per Central Board of Direct Taxes (CBDT) Circular No. 8/2022, the assessee was required to file such application on or before 30/09/2022. The Ld. AR for the assessee submits that CBDT has recently issues Circular No.7/2024 dated 25.04.2024 for extending time limit for filing application for approval of fund under section 80G(5) in Form No.10A/AB till 30 th June 2024. Thus, the assessee may also be allowed similar relaxation of time limit extended by CBDT Circular No.7/2024. The Ld. AR for the assessee further submits that on the basis of latest CBDT’s Circular No.7/2024 dated 25.04.2024. This Bench in Shri Surat Samast Sorathiya Rohindasvanshi Gnati Panch Vs CIT(E) in ITA No.159/SRT/2024 dated 25.04.2024 allowed similar benefit of extended time period and restore the said appeal to the file of Ld. CIT(E) for considering afresh. The Ld. AR for the assessee submits that Ld. CIT(E) has not considered the application on merit. Therefore, by allowing relief of extended time period as per CBDT Circular No. 7/2024, the Ld. CIT(E) may be directed to consider the application of assessee afresh. 4. On the other hand, Ld.CIT-DR for the Revenue for the revenue on the issue of condonation of delay would submit that he left the decision on the discretion of the Bench. On merit of the case, the ld. CIT-DR for the revenue supported the order of ld. CIT(E). The ld. CIT-DR for the revenue submits that the assessee was given sufficient and reasonable opportunity to the assessee for making submission to prove the object and activities of the Trust. The assessee failed to respond such notices. Since the necessary ITA No.473, 474 & 475/SRT/2024 5 conditions for allowing approval of is not examined by the ld. CIT(E), therefore, in case, if this Bench consider that the assessee deserve any opportunity, the matter may be restored to the file of ld. CIT(E) to consider the object of assessee-trust and its activities. The assessee may be directed to be more vigilant in future for making compliance in time. 5. We have considered the rival submission of both the parties and perused record carefully. Firstly, we are considering the plea of condonation of delay before us, the ld. AR of the assessee vehemently submitted that neither the physical copy of impugned order was received nor it was received on registered e-mail. To support such submission, the assessee has filed affidavit of Mr. Dilipbhai Ratilal Kansara, one of the trustee of the assessee trust. Considering the submissions of ld AR for the assessee and the facts explained in the affidavit of the trustee, and taking a lenient view that the assessee is not going to be benefitted by filing appeal belatedly. The delay in filing of appeal is condoned. Now adverting on merit of the case. 6. We find that at the time of filing application for registration in Form 10AB as per Rule 17A, the assessee furnished complete details. Thus, prima facie, the assessee has furnished certain details to substantiate the object and activities. However, the facts remained the same that the ld. CIT(E) rejected the application by taking view that the assessee has not filed application on or before the extended time period of 30.09.2022 as allowed in CBDT Circular No. 8/2022. We find that CBDT in recent Circular No.7/2024 dated 25.04.2024 extended time period up to 30.06.2024 for seeking approval under section 80G(5). Thus, the assessee is also allowed such relaxation ITA No.473, 474 & 475/SRT/2024 6 period up to 30.06.2024 in terms of CBDT Circular No.7/2024 dated 25.04.2024 and this appeal is restored back to the file of Ld.CIT(E) to reconsider the application of assessee on merit and pass order in accordance with law. Needless to direct that before passing the order afresh, the Ld.CIT(E) shall grant reasonable opportunity of being heard to the assessee. The assessee is also given liberty to file written submission and evidence to as and when called for. The ld CIT(E) is directed to consider all such evidences, if so filed by the assessee. The assessee is also further directed to be more vigilant and to make compliance in time as and when called for by ld. CIT(E). In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose. 7. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose. ITA No. 474 & 475/Srt/2024 8. As noted above, the facts in these two appeal are similar with ITA No. 473/Srt/2024, the applications of these appellant was also rejected on similar ground. There is similar delay of 274 and 159 days in filing appeals. Considering the facts that we have already condoned the similar delay in ITA No. 473/Srt/2024, thus, the delay in these two appeals are also condoned with similar observation. Further considering the facts that we have restored the appeal in ITA No. 473/Srt/2024 to the file of ld CIT(A), thus, following the principle of consistency these appeals are also restored back to the file of ld CIT(E) with similar directions. ITA No.473, 474 & 475/SRT/2024 7 9. In the result, both these appeals are also allowed for statistical purpose. Order pronounced in the open court on 13/05/2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) [लेखा सद˟/ACCOUNTANT MEMBER] [Ɋाियक सद˟ JUDICIAL MEMBER] Surat, Dated: 13/05/2024 Dkp. Out Sourcing Sr.P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order // True Copy // Sr. Private Secretary /Private Secretary /Assistant Registrar, ITAT, Surat