Shridariyapuri Sthankvasi Jain Sandh, Surendranagar V. The CIT(Exemption), Ahmedabad

ITA 946/AHD/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6361 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-06-2024
• Assessment Year: misc
• Appeal Filed On: 05-05-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MEHUL K. PATEL
• Section: 10

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ “B”, अहमदाबाद अहमदाबादअहमदाबाद अहमदाबाद । ।। । IN THE INCOME TAX APPELLATE TRIBUNAL “ B ” BENCH, AHMEDABAD ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTNAT MEMBER ITA No.946/Ahd/2024 Assessment Year : - Shridariyapuri Sthankvasi Jain Sandh Sayla Main road, Main bazaar Sayla Surendranagar – 363 436 Vs The CIT (Exemption) Ahmedabad PAN: AALTS 2673 J / (Appellant) / (Respondent) Assessee by : Shri Mehul K. Patel, Adv. Revenue by : Shri Sudhendu Das, CIT-DR /Date of Hear ing : 1 9/0 6/202 4 /Da te of Prono u nce me nt: 25 /06/20 24 आदेश/O R D E R PER SHRI MAKARAND V. MAHADEOKAR, AM: This appeal by the Assessee-trust is directed against the order of the Ld.Commissioner of Income Tax (Exemption), Ahmadabad [hereinafter referred to as “the Ld.CIT(E)”], dated 23-02-2024, whereby the application for registration under section 12AB of the Income Tax Act, 1961 [hereinafter referred to as “the Act”], was rejected by ex-parte order. 2. The Assessee has raised the following grounds of appeal: “(1) That and in law, facts, on the learned CIT (Exemptions) Ahmedabad has grievously erred in not granting sufficient and reasonable opportunity to ITA No.946/Ahd/2024 Shridariyapuri Sthankvasi Jain Sandh vs. CIT(E) 2 the appellant and in deciding the application for registration u/s 12AB ex- parte. (2) That on facts, and in law, the learned CIT (Exemptions) Ahmedabad has grievously erred in rejecting the application for registration u/s 12AB by an ex-parte order. (3) The appellant craves leave to add, alter, amend any ground of appeal.” Facts of the case: 3. The assessee-trust had filed an application in Form 10AB on 30-09-2024 for registration under section 12A(1)(ac)(iii) of the Act. The Ld.CIT(E) granted the registration up to Assessment Year (AY) 2023-24 vide order dated 27-05-2021 in Form 10AC. The Ld.CIT(E) issued several notices to the assessee trust regarding this application. However, the assessee failed to respond to these notices. Consequently, the Ld.CIT(E) disposed of the application based on the material available on record, concluding that the trust failed to satisfy the genuineness of its activities and its objects as required under the Act. On the Grounds of appeal: 4. The assessee-trust has explained the delay in filing the appeal before the Tribunal. It was submitted in the Affidavit dated 20-05-2004 on behalf of Assessee Shri Dariyapuri Sthankvasi Jain Sandh, which reads as under: “I, Bipinbhai Kantilal Shah aged about 67 years, being SHRI DARIYAPURI STHANKVASI JAIN SANDH, and presently residing at M5 1/6 Shashtrinagar Ankur / Ghatlodiya Road, 2nd Floor, Near Neo Hospital, Narayanpura, Ahmedabad, oath and solemn affirmation as under: Children do hereby state on ITA No.946/Ahd/2024 Shridariyapuri Sthankvasi Jain Sandh vs. CIT(E) 3 That I am not at all conversant with the Income Tax matters nor do I operate computers or log in to the Income Tax Portal. Our Trust has never faced Income Tax litigation in the past. It was only recently in the month of April, 2024, that I came to know about rejection of Exemption/ Registration u/s 10 (23C) of Act in the case of one Trust of Anand in case of Mahek Charitable Trust. Then, immediately, we contacted our CA and inquired about the status of our Trust, and came to know that our application u/s 12AB is rejected by CIT (Exemption), Ahmedabad vide order dated 23/02/2024. Thereupon, we were advised that we have to file appeal before Hon'ble ITAT against the said order, and we entrusted the matter to Advocate at Ahmedabad to prepare and file the appeal before Hon'ble ITAT, Ahmedabad Bench. Hence, the delay has occurred due to this bonafide reason and unavoidable circumstances, and in the interest of justice, the delay in filing this appeal, may kindly be condoned, and appeal may kindly be decided on merits, and oblige. Solemnly affirmed at Surendranagar on 1 th day of May, 2024.” 4.1. The Ld.AR submitted that under the above circumstances led to the trustee being unaware of the rejection order issued by the Ld.CIT(E). 5. The Ld. Departmental Representative stated that since the Ld.CIT(E) has not decided the matter on merits, it will be apt to refer the matter back to Ld.CIT(E). 6. We have heard the learned representatives of both parties and perused the material on record. The primary issue for our consideration is whether the delay in filing the appeal should be condoned and whether the matter should be remanded back to the Ld.CIT(E) for a fresh decision on merits. ITA No.946/Ahd/2024 Shridariyapuri Sthankvasi Jain Sandh vs. CIT(E) 4 6.1. Considering the submissions and the circumstances detailed by the assessee-trust, we find that there exists sufficient cause for the delay in filing the appeal. The Hon'ble Supreme Court in the case of Collector, Land Acquisition v. Mst. Katiji & Ors. [(1987) 2 SCC 107] emphasized that a liberal approach should be adopted in condoning delays to advance substantial justice. Following this principle, we are inclined to condone the delay in filing the appeal. 6.2. On the merits of the case, it appears that the Ld.CIT(E) has not had the benefit of a full and comprehensive response from the assessee-trust due to the reasons mentioned. In the interest of justice and fair play, we deem it appropriate to set aside the order of the Ld.CIT(E) and remand the matter back to the file of the Ld.CIT(E) for a fresh adjudication. The assessee-trust is directed to adhere to the timelines set by the Ld.CIT(E) and to fully co- operate in the proceedings. 6.3. In view of the above, we hereby: i. Condone the delay in filing the appeal by the assessee-trust. ii. Set aside the order of the Ld.CIT(E) dated 23/02/2024 and remand the matter back to the file of Ld.CIT(E) for a fresh decision on merits, after giving the assessee an opportunity to present its case. 6.4. Accordingly, the appeal filed by the assessee-trust is allowed for statistical purposes. ITA No.946/Ahd/2024 Shridariyapuri Sthankvasi Jain Sandh vs. CIT(E) 5 7. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 25 June, 2024 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (MAKARAND V.MAHADEOKAR) ACCOUNTANT MEMBER Ahmedabad, Dated 25/06/2024 . ी. य , . . ./T.C. NAIR, Sr. PS ! "# /Copy of the Order forwarded to : 1. "!ी $% / The Appellant 2. &य$% / The Respondent. 3. '(')* य य + / Concerned CIT 4. य य + )"!ी (/ The CIT(E)-Ahmedabad 5. . /ीय )* , य "!ी य ")* , ज /DR,ITAT, Ahmedabad, 6. / 12 3 /Guard file. / BY ORDER, &य ! //True Copy// ह य !'जी (Asstt. Registrar) य "!ी य ")* , ITAT, Ahmedabad 1. Date of dictation (copied matter from Hon’ble AM’s old order) : 20.6.2024 2. Date on which the typed draft is placed before the Dictating Member. : 20.6.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 25.6.24 7. Date on which the file goes to the Bench Clerk. : 25.6.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order :