Odisha Hematology, Cuttack V. CIT(Exemption), Hyderbad

ITA 5/CTK/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5654 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Appeal Filed On: 28-01-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R.K.DAS
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause; Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE S/ AND ARUN KHODPIA, ACCOUNTANT MEMBER Odisha Hematology, Mahanadi Vihar, Cuttack PAN/GIR No. (Appellant Per C.M.Garg This is an appeal filed by the assessee against the or CIT(E), Hyderabad date 17.3.2017 u/s. 12AA(1)(b)(ii) of the income tax Act, 1961. 2. The appeal is time barred by 1347 days. The condonation petition dated 29.1.2021 supported by affidavit sworn by the Secretary of Odisha Hematology contending that the appellate order was never served on the assessee and it is during the assessment proceedings for the financial ye being passed for refusing the registration. It is submitted that the date of order is 17.3.2017 but the assessee came to know on 23.1.2021. As soon IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK S/SHRI CHANDRA MOHAN GARG, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.05/CTK/2021 Hematology, Mahanadi Vihar, Cuttack Vs. CIT (Exemptions), Hyderabad No.AAAAO 4601 J (Appellant) .. ( Respondent Assessee by : Shri R.K.Das , AR Revenue by : Shri M.K.Goutam, CIT ( Date of Hearing : 25 /3/ 20 Date of Pronouncement : 30 / O R D E R g, JM This is an appeal filed by the assessee against the or CIT(E), Hyderabad date 17.3.2017 u/s. 12AA(1)(b)(ii) of the income tax Act, The appeal is time barred by 1347 days. The condonation petition dated 29.1.2021 supported by affidavit sworn by the Secretary of Odisha Hematology contending that the appellate order was never served on the assessee and it is during the assessment proceedings for the financial year 2017-18, the assessee came to know about the order being passed for refusing the registration. It is submitted that the date of order is 17.3.2017 but the assessee came to know on 23.1.2021. As soon Page1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER CIT (Exemptions), Respondent) , AR CIT (DR) / 2022 /3/2022 This is an appeal filed by the assessee against the order of the CIT(E), Hyderabad date 17.3.2017 u/s. 12AA(1)(b)(ii) of the income tax Act, The appeal is time barred by 1347 days. The assessee has filed condonation petition dated 29.1.2021 supported by affidavit sworn by the Secretary of Odisha Hematology contending that the appellate order was never served on the assessee and it is during the assessment proceedings 18, the assessee came to know about the order being passed for refusing the registration. It is submitted that the date of order is 17.3.2017 but the assessee came to know on 23.1.2021. As soon Odisha Hematology, Mahanadi Vihar, Cuttack Page2 | 4 as the assessee came to know about the order, the assessee has filed the appeal. Therefore, there is delay of 1347 days in filing the appeal. 3. Ld A.R. reiterated the contentions raised in the condonation petition and prayed for condoning the delay. Ld CIT DR objected to the condonation petition. 4. After hearing the rival submissions, we are of the considered opinion that the appellant society was prevented by reasonable cause for not filing the appeal in time. Therefore, we condone the delay of 1347 days and admit the appeal for hearing. 5. The assessee has raised the following grounds of appeal: “1. The Income Tax Act 1961, under section 12AA clause (b) requires that the Commissioner, shall pass an order of granting or refusing registration of the trust only after satisfying himself about the objects of the trust and genuineness of its, activities. However in the instant case the Ld. CIT (Exemptions), has not ensured whether the notice has been served by the 1TO Exemption Cuttack on the appellant or not, nor he has given another opportunity to the appellant, even when there was gap of two months from the date of second notice i.e. 18.01.2017 to the date of passing the order i.e. 17.03,2017. Thus the action of the Ld. CIT (Exemptions), is unlawful, unjustified and unwarranted. 2. The Ld. CIT (Exemptions) has not given adequate opportunity to the appellant The appellant has only received the first notice, and had also made some compliance on that date. For the second notice mentioned in the order, no such notice was received by the appellant The Ld. CIT has acted hastily and has rejected the application without communicating the rejection order to the appellant. Thus the action of the Ld. CIT (Exemptions), is unlawful, unjustified and unwarranted. 3. That from the documents submitted with the application, the objects of the society could be known, which is mainly furtherance of medical research in the field of Haematology. Before passing an exparte order the merits of the case should have been considered by the Ld. CIT Odisha Hematology, Mahanadi Vihar, Cuttack Page3 | 4 (Exemptions). Thus the order of the Ld. CIT (Exemptions) is opposed to law, equity, and natural justice, weight of evidence, probabilities facts and circumstances of the case. 4. That the order of the Ld. CIT (Exemptions), is bad in law, arbitrary, unjustified under the facts and circumstances of the cases, and he should be directed to go for fresh examination and adjudication after affording the appellant reasonable opportunity of being heard.” 6. We have heard the rival submissions and perused the record of the case. Ld A.R. of the assessee submitted that there was no notice served on the assessee and the ld CIT(E) passed the order without giving reasonable opportunity to the assessee. Ld A.R. submitted that the assessee trust is a non profit making organization registered as a society with the object (i) to promote and advance hematology, transfusion and allied sciences, (ii) to uphold the standards of practice of hematology, transfusion medicines and allied sciences(iii) to promote research in the field of hematology and to promote public health and cultural activities of the region related to public health. Ld A.R. applied for registration u/s.12A in Form -10A on 27.9.2016 to the CIT(Exemptions) but due to non-compliance, the application was rejected. Ld A.R. submitted that since the appellant did not get sufficient opportunity to prove all the documents and information in support of its objects and activities for claim of registration u/s.12A which is mainly furtherance of medical research in the field of hematology, the ld CIT(E) passed the order. He submitted that the matter may be allowed to furnish the details information, as required by ld CIT(E) for grant of registration. Ld CIT DR did not object to the submission of the assessee. Odisha Hematology, Mahanadi Vihar, Cuttack Page4 | 4 7. In view of above, we set aside the order of the ld CIT(E) and remit the matter back to his file with a direction to consider the grant of registration of the appellant trust after considering the aims and objectives to furnished by the assessee. The assessee is also directed to furnish the required details/evidences to be examined by the ld CIT(E) for grant of registration. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30/3/2022. Sd/- sd/- (Arun Khodpia) (Chandra Mohan Garg) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 30/03/2022 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Odisha Hematology, Mahanadi Vihar, Cuttack 2. The respondent: CIT (Exemptions), Hyderabad 3. The CIT(A)-, Cuttack 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//