Shri Vardhaman Shwetambar Sthanakwasi Jain Shrawak Sangh, Aurangabad V. Commissioner of Income-Tax (Exemption), Pune

ITA 817/PUN/2022

AI Insights

The case involves Shri Vardhaman Shwetambar Sthanakwasi Jain Shrawak Sangh, a religious cum charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemption) rejecting their application for registration under section 12AA of the Income Tax Act, 1961. The rejection was based on the trust's failure to provide necessary documents and comply with specific provisions of the Act and the Income Tax Rules, despite multiple opportunities given by the CIT(E). The trust argued that the COVID-19 pandemic hindered their ability to respond promptly. The Tribunal, considering the circumstances and the Supreme Court's directives on limitation periods during the pandemic, decided to remand the case back to the CIT(E) for a fresh evaluation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137371 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: B
• Next Hearing Date: 26-02-2023
• Assessment Year: misc
• Appeal Filed On: 13-11-2022
• Other Referred Cases: Cognizance for Extension of Limitation, In re 438 ITR 296 (SC), Cognizance for Extension of Limitation, In re 432 ITR 206 (SC), Cognizance for Extension of Limitation, In re 421 ITR 314 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.817/PUN./2022 [U/s. 12AA(1)(b)(ii) of the I.T. Act, 1961] Shri Vardhaman Shwetambar Sthanakwasi Jain Shrawak Sangh, Kasari Bazar, Aurangpura, Aurangabad – 431 001. Maharashtra PAN AALTS3629J vs. The Commissioner of Income Tax (Exemption), Room No.322, 3 rd Floor, ITO, PMT Bldg., Shankar Seth Road, Pune-411037. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Rajiv Thakkar For Revenue : Shri Sardar Singh Meena, CIT Date of Hearing : 27.02.2023 Date of Pronouncement : 28.02.2023 ORDER PER DR. DIPAK P. RIPOTE, A.M. This appeal filed by the assessee is directed against the order of Ld. Commissioner of Income Tax (Exemption), Pune dated 21.01.2021 passed u/s.12AA(1)(b)(ii) of the Income Tax Act, 1961 (in short "the Act"). The assessee has raised the following grounds of appeal : 1. “On facts and circumstances prevailing in the case and as per the provisions of the law, it is prayed that the delay in filing of appeal be condoned and an opportunity to be heard be granted to the Appellant. 2 ITA.No.817/PUN./2022 Shri Vardhaman Shwetambar Sthanakwasi Jain Shrawak Sangh, Aurangabad. The Appellant be granted just and proper relief in this respect. 2. On facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that Ld. Commissioner of income Tax- exemption) has erred in rejecting the registration granted u/s 12AA of the Act. The order so passed by CIT-(Exemption) is improper, unjustified and contrary to the provisions of the Act and be treated as null and void. The appellant be granted just and proper relief in this respect. 3. The Appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing.” 2. Briefly stated facts of the case are that the assessee has made an online application in Form No.10A for approval of the Trust/Institution under section 12AA of the Income Tax Act, 1961 on 01-07-2020 under the category of Religious cum Charitable Trust/Institution. Thereafter, a letter dated 28.08.2020 was issued to the assessee through ITBA portal with a request to upload certain information/clarification in order to process the application. In spite of giving sufficient repeated opportunities to the assessee, the assessee could not file the requisite documents and, therefore, the learned CIT(E) 3 ITA.No.817/PUN./2022 Shri Vardhaman Shwetambar Sthanakwasi Jain Shrawak Sangh, Aurangabad. rejected for grant of registration u/s.12AA of the Act by observing that the assessee has not fulfilled the conditions of sec.12A(1)(ab) of the I.T. Act, 1961 as well as failed to comply with the provisions of Rule 17A of I.T. Rules, 1962. 3. Aggrieved by the order of the learned CIT(E) the assessee carried the matter in appeal before the Tribunal contending, inter alia, that sufficient opportunity has not been provided to the assessee to submit the requisite documents as called for and that due to Covid-19 pandemic, it could not take expedite steps in filing the requisite information/clarification as called for. The Learned counsel undertook that if one more opportunity has been provided to the assessee, it will furnish all the necessary information/documents before the Ld. CIT(E). 4. The Learned DR on the other hand relied on the order of learned CIT(E). 5. We have considered the rival submissions of both the parties and perused the record. We find that the assessee made an online application in Form No.10A for approval of the Trust/Institution on 01.07.2020 u/s.12AA of the I.T. Act. However, the Ld. CIT(E) has rejected the application of the assessee on the ground that the appellant has not filed the 4 ITA.No.817/PUN./2022 Shri Vardhaman Shwetambar Sthanakwasi Jain Shrawak Sangh, Aurangabad. details called for. Prima-facie, it appears that the delay is attributable to Covid-19 pandemic period and, therefore, we condone the delay by virtue of judgment of the Hon’ble Supreme Court in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC) read with judgment in Cognizance for Extension of Limitation, In re 432 ITR 206 (SC) dated 08-03- 2021 and 421 ITR 314 and set aside the matter in issue to the file of Ld. CIT(E) for de novo adjudication. Needless to say, that the assessee shall file all necessary documents before the Ld. CIT(E). Appeal of the assessee is allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 28 th February, 2023. Sd/- Sd/- [SATBEER SINGH GODARA] [DR. DIPAK P. RIPOTE] JUDICIAL MEMBER ACCOUNTANT MEMBER Pune, Dated 28.02.2023 VBP/- Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(Exemption) Pune. 4. The Addl./Joint CIT-Exemption Range, Aurangabad 5. D.R. ITAT, Pune “B” Bench, Pune 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.