Shree Ramji Mandir, Jekishan Vatika, Surat V. CIT (Exemption), Ahmedabad, Ahmedabad

ITA 85/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8028 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-03-2024
• Assessment Year: misc
• Appeal Filed On: 28-01-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Keywords: Principle of natural justice; Bonafide belief; Condonation of delay; Set aside
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM आयकर अपील सं./ITA No.85/SRT/2024 Assessment Year: (2024-25) (Physical Hearing) Shree Ramji Mandir, Jekishan Vatika, At & Post: Nana Varachha, Tal: Choryasi, Surat – 395006 Vs. The CIT (Exemption), Ahmedabad èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AASTS9819D (Appellant) (Respondent) Appellant by Shri Deven K. Kapadia, CA Respondent by Shri Ravi Kant Gupta, CIT(DR) Date of Hearing 01/04/2024 Date of Pronouncement 02/04/2024 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2024-25, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), [in short “the ld. CIT(E)”], Ahmedabad wherein ld. CIT(E) rejected assessee’s application filed in Form No.10AB u/s 12A(1)(ac)(iii) of the Act and provisional registration was also cancelled. 2. The appeal filed by the assessee for assessment year 2024-25 is barred by limitation by 55 days. The assessee moved a petition, requesting the Bench to condone the delay. The content of the petition is reproduced below: “I, Parshottambhai N. Patel, trustee of Shree Ramji Mandir, aged 71 years currently residing at Jalaram Krupa, Near Silvar Point, Nana Varachha, Surat do hereby solemnly affirm and state on oath as under: Page | 2 ITA.85/SRT/2024/AY.2024-25 Shree Ramji Mandir 1. That the trust was granted provisional approval in Form No.10AC u/s 12A on 31.03.2022 for the period commencing from AY.2022-23 to AY.2024-25 and hence the trustees of the trust filed Form No.10AB for obtaining final registration u/s 12A of the Income Tax Act on 19.04.2023. 2. That the trustee was under bonafide belief that the application is made in due time limit and will be granted approval. 3. However, due to non receipt of the any approval of final registration u/s 12A of the Income Tax Act the trustees consulted the Chartered Accountant and after login into the ITD portal it came to the notice that the CIT(Exemption) has already passed rejection order before approx.. 2.5 months ago. 4. That the trustees were not aware about the order passed hence there was delay in filing the appeal. 5. That there was no malafide intention on our part not to company with the notices or not to cooperate the income tax department. 6. That I have not given any false information and have not submitted any false particulars in this affidavit and have not concealed any material facts. I know that and I am aware of the fact that to make the false statement is a criminal cognizable offence punishable under the Law of Crime.” 3. Therefore, based on the contents of the petition for condonation of delay, the Ld. Counsel for the assessee stated that the assessee-trust has explained the sufficient cause for delay. Besides, the assessee could not get physical order from ld. CIT(E) on time, hence such delay has occurred in filing the appeal, therefore, such delay may be condoned. 4. On the other hand, learned Commissioner of Income Tax - Departmental Representative (ld. CIT-DR) for the Revenue submitted that the delay should not be condoned on such flimsy reasons and assessee’s appeal may be dismissed. 5. We have heard both the parties on this preliminary issue. We note that the trust was granted provisional approval in Form No.10AC Page | 3 ITA.85/SRT/2024/AY.2024-25 Shree Ramji Mandir u/s 12A on 31.03.2022 for the period commencing from AY.2022-23 to AY.2024-25 and hence the trustees of the trust filed Form No.10AB for obtaining final registration u/s 12A of the Income Tax Act on 19.04.2023. The trustee was under bonafide belief that the application is made in due time limit and will be granted approval.We note that reasons given in the affidavit for condonation of delay were convincing and these reasons would constitute reasonable and sufficient cause for the delay in filing this appeal. We, therefore, condone the delay and admit the appeal for hearing. 6. On merit, Ld. Counsel submitted that order passed by the ld. CIT(E) is an ex parte order, as the assessee could not file relevant documents and evidences before the ld. CIT(E). However, now the assessee is ready to submit relevant documents and details before the ld. CIT(E), hence, matter may be remitted back to the file of the ld. CIT(E) for fresh adjudication. 7. On the other hand, ld. CIT-DR for the Revenue submitted that assessee-trust was negligent during the proceedings before ld. CIT(E), hence appeal of the assessee may be dismissed. 8. We have head both the parties. Considering the above facts, we note that assessee could not plead his case successfully before the ld. CIT(E). Hence, we are of the view that one more opportunity should be given to the assessee to file relevant documents and evidences before ld CIT(E ) and to plead his case before the ld. CIT(E). We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore Page | 4 ITA.85/SRT/2024/AY.2024-25 Shree Ramji Mandir the matter back to the file of Ld. CIT(E) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(E) and remit the matter back to the file of the ld. CIT(E) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 02/04/2024 in the open court. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 02/04/2024 SAMANTA Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // TRUE COPY // Assistant Registrar/Sr. PS/PS ITAT, Surat