BHUMA RESEARCH IN AYURVEDIC AND HERBAL MEDICINES, , SURAT V. THE COMMISSIONER OF INCOMETAX , (EXEMPTION) , AHMEDABAD

ITA 831/SRT/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 4788 (ITAT-SURAT)
• Duration Of Justice: 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-09-2024
• Assessment Year: 2023-2024
• Appeal Filed On: 06-08-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 831 & 832/Srt/2024 (AY: 2023-24) (Virtual hearing) Bhuma Research In Ayurvedic and Herbal Medicines, 1, Pathik Duplex, Rani Laxmibai Margh, Opp. Navyug College, Rander Road, Surat-395009 PAN No. AACTB 3969 M Vs. C.I.T.(Exemption), Ahmedabad. Appellant/ assessee Respondent/ revenue Assessee represented by Shri Hiren Vepari, C.A. Department represented by Shri Ravi Kant Gupta, CIT-DR with Shri Kevin Langaliya, C.A. Date of institution of appeals 07/08/2024 Date of hearing 05/09/2024 Date of pronouncement 05/09/2024 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER 1. These two appeals by the assessee are directed against the separate orders of learned Commissioner of Income Tax (Exemptions), Ahmedabad [in short, the ld. CIT(E)] dated 23/08/2023 and 19/08/2023 for the Assessment Year (AY) 2023-24. In ITA No. 831/Srt/2024, the assessee has challenged the rejection of application for approval of fund under Section 80G(5) of the Income Tax Act, 1961 (in short, the Act) and in ITA No. 832/Srt/2024, the assessee has challenged rejection of registration of Trust under Section 12AB of the Act. In both these appeals, certain facts are common, therefore, both the appeals were clubbed, heard together and are decided by common order. ITA No.831 & 832/Srt/2024 Bhuma Research In Ayurvedic & Herbal Medicines Vs CIT(E) 2 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that both the applications of assessee were rejected by the ld. CIT(A) by taking a view that the assessee was asked to submit certain details vide notice dated 11/07/2023 and the assessee has not furnished any response, final show cause notice dated 08/08/2023 was issued to the assessee for filing relevant details but no details were furnished by the assessee. The ld. CIT(E) held that in absence of any detail, genuineness of their activities could not be verified, if such activities are inconsonance with object of the Trust. Application under Section 80G(5) of the Act was dismissed/rejected with additional observation that the application for registration under Section 12AB of the Act has already been rejected. The ld. AR of the assessee submits that while filing application for registration in Form-10AB, the assessee furnished e-mail address [e-mail] for the purpose of service on notice. However, no such notice was received on such e-mail. On enquiry from the ITBA Portal, the assessee found that the said show cause notice was sent at the e-mail address at [e-mail]. Such e-mail is not of assessee trust, rather belongs to one of the trustee who is old aged and not regularly engaged in day to day activities of the assessee-trust and he has not seen such e-mail. The assessee-trust has filed affidavit of Bhasker Champaklal Vakharia. The ld. AR of the assessee submits that the assessee came to know about the dismissal of their revision only on 06/07/2024 when their tax consultant login on ITBA Portal for verifying the status of registration under Section 12AB and approval under Section 80G of the Act and found that both ITA No.831 & 832/Srt/2024 Bhuma Research In Ayurvedic & Herbal Medicines Vs CIT(E) 3 the applications were rejected. Neither the show cause notice was received to the assessee nor rejection order was received on the e-mail provided at the time of filing Form 10AB. The ld. AR of the assessee prayed that applications of assessee were rejected for want of compliance, therefore, matter may be restored to the file of ld. CIT(A) for considering the matter afresh and he undertakes on behalf of assessee to be more vigilant in future in making compliance. 3. On the other hand, the learned Commissioner of Income Tax-Departmental Representative (ld. CIT-DR) for the revenue submits that the assessee has given sufficient opportunity and the e-mail address on which notice was issued by ld. CIT(E) is also one of the trustee. In alternative and without prejudice submission, the ld. CIT-DR for the revenue submits that in case the Bench is convinced that the assessee deserve one more opportunity, the matter is restored back to the file of ld. CIT(E) with direction to assessee to be more vigilant in future in making compliance. 4. We have considered the submissions of both the parties and perused the orders of the lower authorities carefully. We find that both the application of assessee for registration under section 12AB were rejected for want of compliance for show cause notice dated 11/07/2023 and the 08/08/2023. We find that the notice was issued by the ld. CIT(E) on e-mail address other than the e-mail provided in Form 10AB at the time of filing application for registration under Section 12AB/80G of the Act. We instead of going into further controversy, find that the show cause notice was not issued through e- mail address provided on Form 10AB itself, the assessee was prevented by ITA No.831 & 832/Srt/2024 Bhuma Research In Ayurvedic & Herbal Medicines Vs CIT(E) 4 sufficient cause for not making compliance in time. Therefore, keeping in view the principles of natural justice, both the matters is restored back to the file of ld. CIT(E) to decide the applications afresh. Needless to direct that before passing the order, the ld. CIT(E) shall grant fair and reasonable opportunity of hearing to the assessee. The assessee is also directed to be more vigilant in future and not to cause further delay and seek adjournment without any valid reason and to furnish all the details and their submissions and evidences on various grounds of appeal raised, as soon as possible, if so desired without any further delay. In the result, the grounds of appeals raised by the assessee are allowed for statistical purposes. 5. In the result, both these appeals of assessee are allowed for statistical purposes only. Order pronounced in the open court on 05 TH September, 2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 05/09/2024 *Ranjan Copy to: 1. Assessee – 2. Revenue - 3. CIT 4. DR By order 5. Guard File Sr. Private Secretary, ITAT, Surat