Tanisa Foundation, Gurgaon V. CIT (Exemption), Chandigarh

ITA 923/DEL/2023

AI Insights

The case involves Tanisa Foundation appealing against the decisions of the CIT (Exemption), Chandigarh, which rejected their applications for registration under Section 12AA and approval under Section 80G of the Income-tax Act, 1961. The primary contention was the alleged lack of reasonable opportunity for the assessee to be heard before the CIT (Exemption) made its decisions. The Tribunal found that the assessee did not receive any communication regarding the hearing, despite the availability of their email address with the CIT (Exemption). Consequently, the Tribunal set aside the CIT (Exemption)'s orders and restored the matter for a fresh decision, emphasizing the principles of natural justice and fair play.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116329 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 20-08-2023
• Assessment Year: misc
• Appeal Filed On: 30-03-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Non compliance; Set aside
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI BEFORE SH. SAKTIJIT DEY, VICE-PRESIDENT AND SH. PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA Nos.924 & 923/Del/2023 (Assessment Year : 2023-24) Tanisa Foundation CA, M.R. Sahu, House No.651, 1 st Floor, Sector-10A, Nr. G.D. Goenka Public School, Gurgaon, Haryana – 122 001 PAN No. AAETT 3089 J Vs. CIT (Exemption) Chandigarh (APPELLANT) (RESPONDENT) Assessee by Shri M. R. Sahu, C.A. Revenue by Shri Subhra Jyoti Chakraborty, CIT-D.R. Date of hearing: 21.08.2023 Date of Pronouncement: 21.08.2023 PER SAKTIJIT DEY, VICE-PRESIDENT : Captioned appeals have been filed by the assessee against two separate orders of Learned Commissioner of Income-tax (Exemption), Chandigarh, rejecting assessee’s applications for registration under Section 12AA and approval under Section 80G of the Income-tax Act, 1961. 2. We have heard Learned Counsel appearing for the assessee and Learned Departmental Representative. The basic contention of the Learned Counsel for the assessee is that without providing reasonable ITA Nos.924 & 923/Del/2023 Tanisha Foundation vs. CIT(E) 2 opportunity of being heard to the assessee, the applications filed seeking registration under Section 12AA and approval under Section 80G of the Act have been rejected. He submitted, though, the CIT (Exemption) has stated that notice of hearing was issued requiring the assessee to furnish its submissions and evidences, however, in reality no such notices were communicated to the assessee in the E- mail address though it was available with the concerned authority. Thus, he submitted, the respective orders of the CIT (Exemption) may be set aside and issues may be restored back to him for de novo adjudication after due and reasonable opportunity of being heard to the assessee. He further submitted, CIT (Exemption) may be directed to dispose of the applications in a time bound manner as the non grant of registration under Section 12AA and approval under Section 80G of the Act will be having an adverse impact on the future assessments of the assessee. 3. The Learned Departmental Representative did not express any serious objection with regard to restoration of issues to CIT(E). 4. Having considered rival submissions, we find, Learned CIT (Exemption) has alleged that on stipulated time of hearing neither any submission of the assessee was received nor the details/evidences called for were received. Thus, basically he has rejected the applications for registration under Section 12AA and approval under Section 80G of the Act due to non compliance. However, it is the case of the assessee that he never received any communication from the office of CIT (Exemption). Fact remains that assessee’s application for registration under Section 12AA and approval under Section 80G of ITA Nos.924 & 923/Del/2023 Tanisha Foundation vs. CIT(E) 3 the Act have been rejected due to lack of proper compliance and absence of evidences. However, going through the facts and material on record, we are of the view that in the interest of fair play and natural justice, the assessee deserves an opportunity of hearing before the CIT (Exemption) to justify its claim of registration under Section 12AA and approval under Section 80G of the Act by furnishing the requisite documentary evidences. In view of the aforesaid, we are inclined to set aside the impugned orders of Learned CIT (Exemption) and restore the issues back to his file for de novo adjudication after providing due and reasonable opportunity of being heard to the assessee. We further direct that applications filed by assessee may be disposed of in a time bound manner, preferably, within a period of three months from the date of receipt of this order. We order accordingly. 5. In the result, both the appeals are allowed for statistical purposes. Order pronounced in the open court on 21.08.2023 Sd/- Sd/- (PRADIP KUMAR KEDIA) (SAKTIJIT DEY) ACCOUNTANT MEMBER VICE-PRESIDENT Date:- 21.08.2023 Priti Yadav* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI