Purshottam Madanlal Chamadia Charitable Trust, Pune V. Commissioner of Income Tax (Exemption), Pune, Pune

ITA 886/PUN/2023

AI Insights

The case involves the Purshottam Madanlal Chamadia Charitable Trust appealing against the order of the Commissioner of Income Tax, Exemption, Pune, which was passed under section 12AA of the Income Tax Act, 1961 for the assessment year 2023-24. The primary contention of the appellant was that they were not provided a reasonable opportunity to respond to the notice issued by the CIT, Exemption, which was contrary to the Standard Operative Procedure (SOP) issued by the CBDT. The Tribunal noted that the time given to the appellant to respond was less than the minimum 15 days required by the SOP, thus violating the principles of natural justice as upheld by the Hon'ble Delhi High Court in a similar case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137490 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 07-09-2023
• Assessment Year: misc
• Appeal Filed On: 09-08-2023
• Other Referred Cases: Dauphin Travel Marketing Private Limited vs. ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SARVESH KANDELWAL
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice
• Section: 142(1); 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.886/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2023-24 Purshottam Madanlal Chamadia Charitable Trust, 925, Synagogue Street, Nina Terrace, Camp, Pune- 411001. PAN : AABTP8097P Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax, Exemption, Pune [‘the CIT, Exemption’] dated 31.05.2023 for the assessment year 2023-24 passed u/s 12AA of the Income Tax Act, 1961 (‘the Act’). 2. At the outset, it is submitted that the appellant was not given reasonable opportunity to respond to the notice issued by the ld. Assessee by : Shri Sarvesh Kandelwal Revenue by : Shri Ajay Kumar Kesari Date of hearing : 08.09.2023 Date of pronouncement : 25.09.2023 ITA No.886/PUN/2023 2 CIT, Exemption. On perusal of the impugned order, it is clear that the appellant was asked to furnish certain information vide letter dated 28.05.2023 requesting the appellant society to file the details on or before 30.05.2023 thereby giving a short period of time i.e. less than one week, which is against the Standard Operative Procedure (‘SOP’) issued by the CBDT dated 19.11.2020, wherein, minimum period of 15 days is required to be given to the assessee to comply with notices u/s 142(1) from the date of issue of the notice. Recently, the Hon’ble Delhi High Court in the case of Dauphin Travel Marketing Private Limited vs. ITO in W.P.(C) 8870/2023 & CM Nos.33516-17/2023 dated 05.07.2023 taking note of this SOP held that the grant of insufficient time to respond the notice violates the principles of natural justice and, therefore, set-aside the assessment. Thus, it is clear that the appellant was given unreasonably short period of time to respond to the notices, which is against the principles of natural justice. Therefore, we set-aside the order passed by the ld. CIT, Exemption and restore the matter back to the file of the ld. CIT, Exemption for fresh disposal in accordance with law after affording reasonable opportunity of being heard to the assessee. ITA No.886/PUN/2023 3 3. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 25 th day of September, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 25 th September, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.