Poddar Chhatra Niwas, Kolkata V. CIT(E), Kolkata

ITA 540/KOL/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8632 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 18-10-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDIPTA GUHA
• Keywords: Charitable institution; Reasonable cause; Set aside
• Section: 12AA

Judgement Text

1 ITA No.540/Kol/2020 Poddar Chhatra Niwas AY: IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA [Before Shri A. T. Varkey, JM & Shri Rajesh Kumar, AM] I.T.A. No. 540/Kol/2020 Assessment Year: Poddar Chhatra Niwas (PAN: AADTP 8691 B) Vs. CIT(E), Kolkata Appellant Respondent Date of Hearing (virtual) 15.02.2022 Date of Pronouncement 18.02.2022 For the Appellant Shri Siddhartha Jhajharia, Advocate For the Respondent Shri Sudipta Guha, CITDR ORDER Per Shri A.T.Varkey, JM This is an appeal preferred by the assessee against the order of Ld. CIT(E) dated 5.9.2020 rejecting the application for registration u/s 12AA of Income Tax Act, 1961 (hereinafter referred to as the Act) filed by the assessee dated 26.02.2020. 2. Brief facts of the case is that the assessee had filed an application in Form 10A for registration u/s 12AA of the Act on 26.02.2020. According to the Ld. CIT(E) even though the matter was fixed for hearing on various dates (18.03.2020, 03.04.2020 and on 15.07.2020) however only on 13.07.2020 the assessee had bothered to ask for adjournment (online). According to Ld. CIT(E) the matter was again fixed on 22.07.2020 wherein again the assessee had preferred an adjournment application. So the case was again re-fixed on 31.08.2020. However, according to Ld. CIT(E) since there was no compliance on the part of the assessee even on 31.08.2020, the registration u/s 12AA has been rejected. 3. At the outset, the Ld. A.R. of the assessee Shri S. Jhajharia brought to our notice that from the perusal of the dates fixed for hearing (supra) it can be noted that the dates fall in the midst of Covid-19 pandemic; and therefore due to restrictions imposed by Govt in this regard, the assessee could not appear before the Ld. CIT(E) which resulted in the Ld. CIT(E) rejecting application for its registration by passing the impugned order. However it 2 ITA No.540/Kol/2020 Poddar Chhatra Niwas AY: was brought to our notice that the Ld. CIT(E) has granted registration u/s 12AA of the Act by order dated 27.05.2021 which was for AY 2021-22 to 2023-24 against the application made by the assessee afresh on 20.02.2021; (refer to page 79 to 81 of PB). According to Ld. A.R., since the Ld. CIT(E) has granted registration u/s 12AA by order dated 27.05.2021 it is clear that the Ld. CIT(E) must have been satisfied about the charitable objects for which the assessee has been formed and about the genuinity of its activities, which are for un-disputably for charitable purposes. Therefore, according to the Ld. A.R, since the assessee had applied for registration under 12AA of the Act on 26.02.2020 for earlier year the same ought to have been granted by the Ld. CIT(E) but for Covid-19 pandemic, which prevented the Ld.AR from attending for hearing before Ld. CIT€. According to Ld.AR, since there was reasonable cause for not attending the hearing before the Ld. CIT ( E ), the assessee’s registration u/s. 12AA may be granted on the application filed on 26.02.2020. On this prayer of assessee, we note that the assessee had filed Form 10A for registration under 12AA of the Act on 26.02.2020 which was rejected by the Ld. CIT(E) by passing the impugned order on 5.09.2020 for non- compliance, which was due to Covid-19 pandemic. It is a matter of fact that the assessee again had applied for registration on 28.02.2021 and the Ld. CIT(E) has granted it section 12AA registration on 27.05.2021 from AY 2021-22 to 2023-24. In such a scenario, just because the assessee could not appear before Ld. CIT (E) due to Covid-19 pandemic, the rejection of application by the impinged order dt. 5.9.2020 needs to be set aside and the application for registration dt. 26.02.2020 is restored in his file and we direct him to consider again the application filed by the assessee on 26.02.2020 for registration under 12AA of the Act in accordance to law. 3. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 18 th February, 2022. Sd/- Sd/- (Rajesh Kumar) (Aby. T. Varkey) Accountant Member Judicial Member Dated: 18.02.2022 SB, Sr. PS 3 ITA No.540/Kol/2020 Poddar Chhatra Niwas AY: Copy of the order forwarded to: 1. Assessee –Poddar Chhatra Niwas, 150, Chittaranjan Avenue, Kolkata-700007 2. Revenue – CIT(E), Kolkata 3. CIT(E)- Kolkata 4. CIT, Kolkata. 5. DR, ITAT, Kolkata, (sent through e-mail).. True Copy By Order Assistant Registrar ITAT, Kolkata Bench, Kolkata