Sri Gurutegh Bahadur Education Society, Jabalpur V. Commissioner of Income Tax, Exemption, Bhopal

ITA 6/JAB/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5023 (ITAT-JABALPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 14-03-2021
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Assessee Lawyers: HEMANT S. MODH
• Keywords: Charitable institution; Competent authority
• Section: 12A

Judgement Text

1 | P a g e IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI SANJAY ARORA, HON’BLE ACCOUNTANT MEMBER & SHRI MANOMOHAN DAS, HON'BLE JUDICIAL MEMBER I.T.A. No. 06/JAB/2021 Appellant by : Shri Hemant S. Modh, Advocate Respondent by : Shri U.B. Mishra, CIT-DR Date of hearing : 11/07/2022 Date of pronouncement : 21/07/2022 O R D E R Per Manomohan Das, JM: The captioned Appeal has been preferred before the Tribunal against the Order dated 08-02-2021 by the Commissioner of Income Tax (Exemptions) (‘CIT (E)’, for short). 2. The brief facts of the case are as follows. The appellant, Sri Gurutegh Bahadur Education Society, Jabalpur, approached the ld. CIT(E), seeking registration of the Society under section 12A of the Income Tax Act, 1961 (‘the Act’ hereinafter), which was rejected by the ld. CIT(E) vide order dated 02-06- 2017. Being aggrieved, the appellant preferred appeal, and the Tribunal, vide it’s order (in ITA No. 30/ JAB/ 2017, dated 14-03-2018), allowed the appeal of the appellant with a direction to the ld. CIT(E) to decide afresh the claim of the Sri Gurutegh Bahadur Education Society, 1, Sri Gurutegh Bahadur Khalasa College, Mahanadda, Nagpur Road, Jabalpur. [PAN : AAEAS 6226 R] vs. Commissioner of Income Tax (Exemptions), Bhopal. (Appellant) (Respondent) ITA No. 06/JAB/2021 Sri Gurutegh Bahadur Education Society v. CIT(E) 2 | P a g e applicant-society. In compliance with the said order, the ld. CIT(E) called for various documents from the appellant in support of it’s claim for registration u/s. 12A of the Act. The ld. CIT(E) sought reply from the appellant vide notice dated 29-09-2020 fixing the date of reply on 09-10-2020, but, as stated in his order, no reply was received from the appellant. Thereafter, the ld. CIT(E) issued notice dated 15-10-2020, fixing the case on 26-10-2020 for filing the reply, but again no reply was received from the appellant-society. Notices dated 18-01-2021 and 27- 01-2021, fixing the dates for compliance on 25-01-2021 and 03-02-2021 respectively, were also issued to the society, to no reply. In absence of any reply from the appellant, the ld. CIT (E) considered the matter of the appellant on merits as per the materials available on record. Vide the impugned order, the ld. CIT(E) after considering the materials available on record came to the conclusion that it is difficult to establish that the applicant-trust is a charitable institution and, accordingly, rejected it’s application for registration u/s. 12AA. Being aggrieved, the society is in appeal before the Tribunal. 3.1 Before us, it was claimed on behalf of the Society that it had received only one notice, i.e., dated 15-10-2020, on 27-10-2020, wherein the date for filing the reply was mentioned as 26-10-2020, so as to be of no consequence. The same was in any case responded to vide letter dated 27/10/2020, seeking time to compile the information called for, also adverting to being constrained due to pandemic (PB pg. 4). Further, the other notices stated as issued by the ld. CIT(E) had not been received by the society. It was accordingly prayed that the matter be remitted back to the file of the competent authority for fresh adjudication, i.e., in compliance of the directions by the Tribunal on the earlier occasion. 3.2 In view of the appellant’s claim qua non-receipt of notices of hearing; the one received being also of no consequence, it was required to furnish an affidavit to that effect. The appellant-society furnished a sworn affidavit dated July 2, 2022 ITA No. 06/JAB/2021 Sri Gurutegh Bahadur Education Society v. CIT(E) 3 | P a g e regarding the non-receipt of the notices (PB pgs. 5-6). The ld. CIT-DR countered the same, adducing evidence to the effect that the notice dated 27/01/2021 was delivered to the Society on the same date through e-mails. The same could not be countered by Sh. Modh, the ld. counsel for the assessee, except for stating that the cc of the notice, which was at his email id, is not his regular email id, and that he seldom uses it. 4. We have heard the parties, and perused the materials on record. 4.1 As regards the pleading by Sh. Modh, the same is neither here nor there inasmuch as the Revenue would send notices only at the email ids provided thereto for the purpose. Two, the addressee’s email id or the proof of delivery furnished by the ld. CIT-DR is not refuted. The affidavit dated 02/7/2022 thus stands disproved to that extent. We are disinclined to, in view thereof, i.e., the assessee making a wrong averment per a sworn statement, accord much credence thereto. In any case, the assessee became aware of the proceedings being on in it’s case on the receipt of notice dated 15/10/2020 on, as stated, 27/10/2020 and, in fact, ought to have been ready with the case. 4.2 Be that as it may, we, in view of the supervening circumstance of the pandemic, consider it proper to, in the interest of justice, take a liberal view of the matter. No prejudice would also stand to be caused to the Revenue, except, of course, the administrative load that any remission entails. We also abstain imposing cost in view of, as afore-stated, the pandemic. 4.3 The matter is accordingly restored back to the file of the ld. CIT(E) for affording one final opportunity to the assessee to present it’s case before the competent authority. Shri Modh assured full cooperation by the assessee in the matter, stating that it is ready with the case, and that the notice/s of hearing on the assessee may be sent at the email address/es at which the earlier notices were, and ITA No. 06/JAB/2021 Sri Gurutegh Bahadur Education Society v. CIT(E) 4 | P a g e which shall be responded forthwith. Needless to add, the adjudication by the ld. CIT( E) shall be in accordance with law, per a speaking order, issuing definite findings and, following a fair procedure. We decide accordingly. 5. In the result, the assessee’s appeal is allowed for statistical purposes. Order pronounced in open court on July 21, 2022 Sd/- Sd/- (Sanjay Arora) (Manomohan Das) Accountant Member Judicial Member Dated: 21/07/2022 vr/- Copy to: 1. The Appellant: Sri Gurutegh Bahadur Education Society, 1, Sri Gurutegh Bahadur Khalasa College, Mahanadda, Nagpur Road, Jabalpur 2. The Respondent: Commissioner of Income Tax (Exemptions), Bhopal 3. The CI T-DR, I TAT, Jabalpur. 4. Guard File By order (VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Jabalpur.