SHRI MAHARAJA AGGARSAIN VIKAS TRUST, MANSA V. COMMISSIONER OF INCOME TAX ( EXEMPTIONS), CHANDIGARH

ITA 77/ASR/2023

AI Insights

The case involves Maharaja Aggarsain Vikas Trust, a charitable trust, which appealed against the order of the Commissioner of Income Tax (Exemptions), Chandigarh, denying the renewal of registration under section 12A of the Income Tax Act, 1961. The trust argued that the CIT (E) erred in rejecting their application without proper notice and consideration of their online records. The CIT (E) had initially cancelled the registration on an ex parte basis due to the non-appearance of the trust representatives. The tribunal considered the trust's inability to receive the notice due to their lack of computer literacy and the extension of the deadline for registration approval by the CBDT until September 30, 2023, as per Circular 6 of 2023. Consequently, the tribunal decided to remit the matter back to the CIT (E) for a fresh evaluation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115038 (ITAT-AMRITSAR)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-08-2023
• Assessment Year: misc
• Appeal Filed On: 13-03-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HITENDRA BHAURAOJI NINAWE
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No.77/Asr/2023 Assessment Years: 2023-24 Maharaja Aggarsain Vikas Trust, College Liwa Road, Ward-1, Maharaja Aggarsain Road, Mansa. [PAN:AAATM7377A] (Appellant) Vs. CIT (Exemptions) Chandigarh. (Respondent) Appellant by Sh.J. K. Gupta, Adv. Respondent by Sh. Hitendra Bhauraoji Ninawe, CIT. DR Date of Hearing 08.08.2023 Date of Pronouncement 21.08.2023 ORDER Per:Anikesh Banerjee, JM The instant appeal of the assessee is directed against the order of the ld. Commissioner of Income Tax (Exemption) Chandigarh,[in brevity ‘the CIT (E)’] I.T.A. No.77/Asr/2023 Assessment Years: 2023-24 2 order passed u/s 12A(ac) (iii) of the Income Tax Act 1961[in brevity ‘the Act’] order dated 16.01.2023. 2. The assessee has taken the following grounds: 1. That on the facts and in the circumstances of the case and in law, the learnedCIT(Exemption) has erred in denying the renewal of registration u/s 12A of the Income tax Act, 1961. 2. That the assessee had got registration u/s 12A fromassessment year 2001-02. So,the renewal of registration should have been allowed but the same was rejected on 16.01.2023. 3. That on the facts and in the circumstances of the case and in law, the learned CIT(Exemption) has erred in giving a finding that the trust is not responding to the notices issued as no notice was received by the assessee on mail which is clear from the screen shot of portal. 4. That on the facts and in the circumstances of the case and in law, the learnedCIT(Exemption) has erred in rejecting the application without checking its online record. I.T.A. No.77/Asr/2023 Assessment Years: 2023-24 3 5. That on the facts and in the circumstances of the caseand in law, the learned ClT(Exemption) has erred in relying on the various judgments while rejecting the registration u/s 12A of the Act which are not relevant to the facts of the case. 6. That on the facts and in the circumstances of the case and in law, the learnedCIT(Exemption) was only required to see if there is any change in the objects which were charitable for the last 20 years or so and whether the trust is genuine and nothing more. 7. That no reasonable opportunity was given to the assessee to meet the case. So, itis against natural law and justice. So, the order of rejection is liable to be quashed. 8. That any other relief may kindly be granted to the assessee to whom it is foundentitled at the time of hearing of appeal.” 3. Brief fact of the case is that the assessee is a Charitable Trust and filed application in Form No. 10AB u/s 12A (1) (ac) (iii) of the Act for registration u/s I.T.A. No.77/Asr/2023 Assessment Years: 2023-24 4 12AA of the Act. The ld. CIT(E) issued the notice. The adjournment was taken and finally none was present on behalf of the assessee. The ld. CIT(E) rejected the assessee’s application, and the registration was cancelled u/s 12AB of the Act. Aggrieved assessee, filed an appeal before us for judicious consideration. 4. The ld. AR for assessee vehemently argued and placed that the assessee was unable to submit the documents as the assessee ignorant in the computer system so, the notice was duly not received by the assessee. The ld. AR further prayed that the CBDT extended the date till 30.09.2023 for approval of registration u/s 12AB of the Act. The ld. AR prayed for remand back the matter to the ld. CIT(E) for further adjudication de novo. 5. The ld. DR relied on the order of the ld. CIT(E) but not made any objection against the assessee’s submission. 6. We heard the rival submission and considered the documents available in the record. The application of registration was duly cancelled on ex parte basis of nonappearance in the hearing proceedings. The ld. AR placed the reasons for nonappearance before the authority. Further the CBDT extended the date till 30.09.2023 by Circular 6 of 2023, F. No.370133/06/2023-TPL dated 24/05/2023. Considering above, the bonafide opportunity of the assessee was denied during the I.T.A. No.77/Asr/2023 Assessment Years: 2023-24 5 approval proceeding. We remit back the matter to the ld. CIT(E) for adjudication de novo. Needless to say, the assessee should get a reasonable opportunity of hearing in setting aside proceeding. 7. In the result, the appeal of the assessee bearing ITA No. 77/Asr/2023 is allowed for statistical purposes. Order pronounced in the open court on 21.08.2023 Sd/- Sd/- (Dr. M. L. Meena) (ANIKESH BANERJEE ) Accountant Member Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order