Global Academy for Medical Education & Science Trust, Ahmedabad V. The Commissioner of Income tax(Exemption), Ahmedabad

ITA 703/AHD/2023

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 1118 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 31-01-2024
• Assessment Year: misc
• Appeal Filed On: 13-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 12AA; 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Global Academy for Medical Education & Science Trust 412, Sarvopari Mall, Opp Parshwanath Jain Derasar, Sola Road, Ahmedabad, Gujarat PAN: AADTG5622P (Appellant) Vs The Commissioner of Income Tax (Exemption), Ahmedabad (Respondent) Assessee Represented: Shri Hasmukh V Doshi, CA Revenue Represented: Shri Sudhendu Das, CIT-DR Date of hearing : 01-02-2024 Date of pronouncement : 20-03-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- These appeals are filed by the Assessee as against exparte Rejection orders dated 21.08.2023 and 24.08.2023 passed by Commissioner of Income Tax (Exemption), Ahmedabad denying Registration under section 12AB and 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Since common issue is involved in both the appeals, the same are disposed of by this common order for the sake of convenience. ITA Nos. 703 & 704/Ahd/2023 I.T.A Nos. 703 & 703/Ahd/2023 Page No Global Academy for Medical Education & Science Trust vs. CIT(E) 2 2. The Grounds of Appeal raised by the Assessee in ITA No. 703/Ahd/2023 reads as follows: 1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s 12AB of the Act. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has not provided reasonable opportunity of being heard as provided under Second Proviso to Section 12AB(1)(b)(ii)(B) of the Act. 3. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has hurriedly rejected the claim of assessee without pointing out specific deficiency in show cause notice. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. 3. In support of the grounds, the assessee filed a Notarized Affidavit that the assessee was not served with hearing notices on 11.07.2023, 04.08.2023 with regard to application for registration u/s. 12AB of the Act and also not received hearing notices on 12.07.2023, 31.07.2023 and 10.08.2023 with regard to application for registration u/s. 80G(5) of the Act respectively. Copy of the Notarized Affidavit filed by the Trust reads as follows: AFFIDAVIT In the matter of Global Academy for Medical Education & Science Trust (PAN: AADTG5622P) for the application u/s. 12AA (ITA No. 703/Ahd/2023 and application u/s. 80G (ITA No. 704/AHD/2023) Affidavit for declaring the facts about lack of information of notice sent by Commissioner of Income Tax Exemption), Ahmedabad in respect of application u/s 12AA and 80G of IT Act. I HARDIK CHANDARANA (Trustee of Global Academy for Medical Education & Science Trust) aged about adult, son of KISHORIBHAI LILADHARBHAI CHANDARANA identified by PAN: AHDPC8236A do solemnly affirm and state on oath as under: I.T.A Nos. 703 & 703/Ahd/2023 Page No Global Academy for Medical Education & Science Trust vs. CIT(E) 3 1. I am trustee of Global Academy for Medical Education & Science Trust and I had applied for registration u/s. 12AB and 80G of I.T. Act in Form 10A and 10AB on behalf of above trust. 2. As I had never opened e-portal, I was not aware about any notice given by offer of CIT(Exemption) with reference to registration application 's 12AA of IT Act as well as application for approval u/s 80G of I.T. Act 3. I further declare that had not received any notice by e-mail or message. 4. As I had no idea about notice, I could not comply or respond the notice uploaded by CIT(E) 11/07/2023 and 04/08/2023 with regard to application for registration u/s. 12AB of I.T. Act. 5. As I had no idea about notice, I could not comply or respond the notice uploaded by CIT(E) 12/07/2023, 31/07/2023 and 09/08/2023 with regard to application for registration u/s.8OG of I.T. Act 6. I further declare that the activities of the trust is genuine and the details submitted by signature in Form 10AB are very genuine and correct. VERIFICATION 1, HARDIK CHANDARANA, the above-named deponent do hereby verify that the contents of para 1 to 6 are true to the best of my knowledge. Place: AHMEDABAD Date: 29/1/0024 For, Global Academy for Medical Education & Science Trust Chandarana H.K. (HARDIK CHANDARANA) Trustee 4. When these appeals were heard on 30.01.2024 after considering the above Notarized Affidavit, the Ld. CIT-D.R. was asked to verify from the office of CIT(E), whether the notices for hearing were posted only on the Tax portal of the assessee or whether notices were served by any other electronic mode namely email or physical notice to the assessee Trust. For reporting compliance these appeals were adjourned to 01.02.2024. I.T.A Nos. 703 & 703/Ahd/2023 Page No Global Academy for Medical Education & Science Trust vs. CIT(E) 4 5. In response, the Ld. CIT-DR Shri Sudhendu Das produced before us screenshot of the status of service of notice from CIT(E) email id namely [e-mail] to the assessee’s email address namely [e-mail] as follows: Sr. No. Notice Particulars Sent from PCIT email.id received by assessee email.id 1 12AB 11/07/23 06:56:26 PM 11/07/23 06:56:30 PM 2 12 AB 04/08/23 09:35:51 PM 04/08/23 09:35:58 PM 3. 80G(5) 12/07/23 05:01:27 PM 12/07/23 05:01:33 PM 4. 80G (5) 31/07/23 07:18:20 PM 31/07/23 07:18:25 PM 5 80G(5) 10/08/23 12:32:42 AM 10/08/23 12:32:46 AM 6. Thus the Ld. CIT-DR submitted that the assessee is not correct in stating that notices were not issued to the assessee Trust. Thus the assessee Trust has filed a false Notarized Affidavit before this Tribunal and requested to take appropriate action under the provisions of law. 6.1. Ld. Counsel for the assessee submitted unconditional apologies of the statement of non-service of notice through email id of the Trust and the Trustee without properly verifying from the official email id filed the Affidavit and pleaded to withdraw the Notarized Affidavit. Ld. Counsel further humbly pleaded to grant one more opportunity for Registration of the Trust u/s. 12AB and u/s. 80G(5) of the Act. 7. We have given our thoughtful consideration and carefully perused the materials available on record. It is seen that the assessee Trust was registered on 10.01.2020 with the main object to promote education, medical relief, providing medical treatment to needy persons. The assessee Trust obtained provisional I.T.A Nos. 703 & 703/Ahd/2023 Page No Global Academy for Medical Education & Science Trust vs. CIT(E) 5 registration u/s. 12AB of the Act from the Ld. CIT(E) on 30.11.2022. It is thereafter the assessee filed application in Form 10AB for final registration on 15.02.2023. As stated in the Notarized Affidavit, the assessee claims that no notices were served upon him. 7.1. Per contra, the department proved beyond doubt that the first notice was delivered on 11.07.2023 sent at 06:56:26 p.m. and the same delivered to the email address at 06:56:30 p.m. Similarly, second notice sent on 04.08.2023 at 09:35:51 p.m. delivered at 09:35:58 p.m. Thus it is proved the assessee’s Affidavit is misleading, though deposed before a Notary Public. 8. Section 277 of the Income Tax Act provides for false statement in verification, etc. and Section 277A of the Act provides for falsification of books of account or document, etc. Similarly Section 177 of the Indian Penal Code, 1860 deals with furnishing of false information and Section 181 of Indian Penal Code, 1860 deals with false statement on or affirmation to public servant. Thus every assessee who makes a statement before any Authority should be vigilant enough with the above provisions of law and punishment prescribed therein. Since the assessee pleaded to withdraw the above Notarized Affidavit and submitted unconditional apologies before this Tribunal and also provisional registration already granted to the assessee Trust on 10.01.2020. We deem it fit to impose a cost of Rs.5,000/- each in the above appeals to be payable to the Prime Minister National Relief Fund account within a period of two weeks of receipt of this order. However to uphold I.T.A Nos. 703 & 703/Ahd/2023 Page No Global Academy for Medical Education & Science Trust vs. CIT(E) 6 the Principle of Natural Justice, we deem it fit to set aside the exparte rejection orders dated 21.08.2023 and 24.08.2023 passed by Ld. CIT(E) with a direction to reconsider the Registration u/s.12AB and u/s. 80G of the Act by providing one opportunity to the assessee and pass orders strictly under the provisions of law. Needless to say, the assessee should furnish all the required details as prescribed under the Act and Rules for getting the Registration under the Act. 9. In the result, the appeals filed by the Assessee are allowed for statistical purposes. Order pronounced in the open court on 20-03-2024 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 20/03/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद