Appeal details
Counselvise Citation
[2023] 102 COUNSELVISE.COM (IT) 0499 (ITAT-PUNE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 22 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
25-10-2023
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Next Hearing Date
25-10-2023
Assessment Year
misc
Appeal Filed On
03-07-2023
Judgement Text
॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील स ं . / ITA No. 786/PUN/2023 Shree Rushabh Ajit Jain Medical And Charitable Trust C/o Shree Kutchi Visa Oswal Deravasi Jain Sangh, Ram Maruti Road, Naupada, Thane(West) – 400602 PAN:ABCTS4506L . . . . . . . अपीलार्थी / Appellant बनाम / V/s. Commissioner of Income Tax-Exemption, Pune . . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee by : Mr. Rohan Dedia (Virtual) Revenue by : Mr Ajay Kumar Kesari स ु नवाई की तारीख / Date of conclusive Hearing : 26/10/2023 घोषणा की तारीख / Date of Pronouncement : 26/10/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; By present appeal the assessee challenged DIN & order No. ITBA/EXM/F/EXM45/2023-24/1053371914(1) dt. 31/05/2023 of the Commissioner of Income Tax-Exemption, Pune [for short ‘CIT(E)’] passed u/s 12A(1)(ac)(vi) of the Income-tax Act, 1961 [for short ‘the Act’] 2. We have heard rival contentions of both the parties; and subject to the provisions of rule 18 of ‘ITAT-Rules’, perused material placed on record. Shree Rushabh Ajit Jain Medical And Charitable Trust ITA No.786/PUN/2023 PAN: ABCTS4506L ITAT-Pune Page 2 of 3 3. In adjudicating first issue of violation of principle of natural justice, it is apt to note here that, the proviso to section 12AA(1)(b) of the Act mandates the registering authority to provide a reasonable opportunity to the applicant of being heard before he refusing to grant registration or rejects the application seeking registration. 4. We observed that, the appellant trust applied for 12A registration u/s 12A(1)(ac)(iii) of the Act on 29/11/2022. Upon perusal of Form 10AB and accompanying documents, the Ld. CIT(E) in order to vouch existence of the trust and genuineness of its activities, by issue of notice dt. 07/03/2023 called upon the appellant to substantiate the existence and genuineness of its activities and to furnish certain information / clarification regarding proof of identity of trustees, year-wise list of donation received, list of donors, note on charitable activities alongwith credible evidence and details of undertakings etc. Based on the information supplied by the appellant and previously rejected application, the Ld. CIT(E) concluded that the activities of the appellant lacks genuinity and thus came to reject the application. However this impugned order of rejection passed without the issue show cause notice [for short ‘SCN’] to the appellant in violation of provisions of section 12AB(1)(b)(ii) of the Act. Thus this rejection is found violative of principle of natural justice. 5. We note that, the fresh registration procedure brought in u/s 12AB of the Act by Finance Act 2020 mandates the registering authority dealing with application made u/s 12A(1)(ac) of the Act to provide a reasonable opportunity to the applicant before any such application is rejected. That is to say the registering authority was obligated to issue a written ‘Show-Cause-Notice’ to the appellant detailing therein his observations Shree Rushabh Ajit Jain Medical And Charitable Trust ITA No.786/PUN/2023 PAN: ABCTS4506L ITAT-Pune Page 3 of 3 and reasoning in arriving at to reject the application. Such opportunity was necessary to protect against arbitrary rejection by the registering authority, and also to ensure that negative observations are negated by credible evidences by the appellant by a fair play. However we found that the Ld. CIT(E) gave a goby to this obligation and rejected the application without first serving SCN to the appellant. 6. In view of the ratio laid down by the Hon’ble Rajasthan High Court in ‘Sanatan Dharm Mahaveer Dal Vs CIT’ reported in 252 ITR 46, the impugned proceedings culminated in violation of principles of natural justice are in our considered view deserves to be set-aside as contra-legem. In the event we deem it fit to remand the matter back to the file of Ld. CIT(E) with a direction to accord a reasonable opportunity to the appellant to represent against negative observation made in its case and to decide the issue of registration a fresh, preferably in three effective hearings after serving the appellant with ‘SCN’ in terms of section 12AB of the Act. 7. Resultantly, the appeal is allowed for statistical purpose in above terms. U/r 34 of ITAT Rules, order pronounced in open court on this Thursday 26 th day of October, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER प ु णे / PUNE ; ददना ां क / Dated : 26 st day of October, 2023. आदेश की प्रतितलतप अग्रेतिि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT, Pune (MH-India) 4. The CIT(E),Pune (MH-India) 5. DR, ITAT, Pune Bench ‘B’, Pune 6. गार्डफ़ाइल / Guard File. आदेशान ु सार / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्यायादधकरण, प ु णे / ITAT, Pune.
