Shri Kunpara Kadva Patidar Samaj Seva Trust, Surendranagar V. The CIT(Exemption), Ahmedabad

ITA 952/AHD/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1499 (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: PartlyAllowed
• 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
• Keywords: Condonation of delay; Set aside
• Section: 80G; 12A

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 1. ITA No.952/Ahd/2024 2. ITA No.953/Ahd/2024 Assessment Year : - Shri Kunpara Kadva Patidar Samaj Seva Trust R Samaj Seca Trust, Chaman Ramjibhai Patel Navalgadh, Dhrangadhra, Surendranagar – 363 320 (Gujarat) Vs The CIT(Exemption) Ahmedabad PAN: AAXTS 9852 P / (Appellant) / (Respondent) Assessee by : Shri Mehul K. Patel, Adv. Revenue by : Shri Sudhendu Das, CIT-DR /Date of Hearing : 19/06/2024 /Date of Pronouncement: 25/06/2024 आदेश/O R D E R PER SHRI MAKARAND V. MAHADEOKAR, AM: These two appeals by the Assessee-trust are directed against two separate orders of the Ld.Commissioner of Income Tax (Exemptions), Ahmadabad [hereinafter referred as “the Ld.CIT(E)”], dated 19-02-2024 and 07-03-2024, wherein the application for registration under section 12AB and 80G of the Income Tax Act, 1961, were rejected. 2. The Assessee has filed the following grounds of appeal: ITA Nos.952 & 953/Ahd/2024 Shri Kunpara Kadva Patidar Samaj Seva Trust vs. The CIT(E) 2 In ITA No.952/AHD/2024: “(1) That on facts, and in law, the learned CIT (Exemptions) Ahmedabad has grievously erred in not granting sufficient and reasonable opportunity to 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.” In ITA No.953/Ahd/2024: “1. That on facts, and in law, the learned CIT (Exemption) has grievously erred in not granting sufficient and reasonable opportunity of hearing to the appellant and in passing ex-parte order. 2. That on facts, and in law, the learned CIT (Exemption) has grievously erred in rejecting the application for approval u/s. 80G(5) of the Act as not maintainable by treating it as not filed within the prescribed time limit. 3. The appellant craves liberty to add, alter, amend any ground of appeal.” Facts of the case: 3. The assessee-trust was having provisional registration up to Assessment Year 2023-24 vide Form 10AC dated 27-05-2021. Later on, trust filed an application in Form 10AB on 30-90-2023 for registration under section 12A(1)(ac)(iii) of the Act. 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) rejected the application and cancelled the provisional registration earlier granted. ITA Nos.952 & 953/Ahd/2024 Shri Kunpara Kadva Patidar Samaj Seva Trust vs. The CIT(E) 3 3.1. The assessee-trust also filed an application in Form 10AB for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Act on 30.9.2023. The assessee-trust was also given provisional approval in form 10AC issued on 27.5.2021 for the period from 27-5-2021 to A.Y.2023-24. The Ld.CIT(E) issued show cause notice to assessee on 28.11.2023. The assessee failed to respond to the said notice. 3.2. The Ld.CIT(E) rejected the application stating that the application should have been made on or before 30-9-2022. He further stated that the application of the trust in form 10AB for granting registration u/s. 12A(1)(ac)(iii) of the Act is rejected on 19-2-2024, hence the assessee is not having valid order of registration and therefore the application for approval u/s 80G is not maintainable. On the Grounds of appeal relating to ITA No.952/Ahd/2024: 4. The assessee-trust has explained the delay of 17 days in filing the appeal before the Tribunal. It was submitted that the trust is located at very remote location and the trustees are not very conversant with the e-filing and portal related formalities. One of the trustees came to know about the rejection of some other and steps taken by them. Therefore, he contacted the CA and checked the status of their application filed online by the CA and found that their application for registration is rejected. Since they were not having e-mail address, they did not receive any email from the Ld.CIT(E). The trustee also filed an affidavit for condonation of delay. ITA Nos.952 & 953/Ahd/2024 Shri Kunpara Kadva Patidar Samaj Seva Trust vs. The CIT(E) 4 5. The Ld.Departmental Representative did not object to the condonation of delay and stated that since the Ld.CIT(E) has not decided the matter on merits, it will be apt to refer the matter back to the file of the Ld.CIT(E). 6. We have heard the learned representatives of both parties and perused the material available on record. The primary issue for 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. 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. 6.1. 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. 6.2. In view of the above, we hereby: i. Condone the delay in filing the appeal by the assessee-trust. ITA Nos.952 & 953/Ahd/2024 Shri Kunpara Kadva Patidar Samaj Seva Trust vs. The CIT(E) 5 ii. Set aside the order of the Ld.CIT(E) dated 19-2-2024 and remand the matter back to the Ld.CIT(E) for a fresh decision on merits, after giving the assessee an opportunity to present its case. 7. Accordingly, the appeal filed by the assessee-trust in ITA No.952/Ahd/2024 is treated as allowed for statistical purposes. On the grounds of appeal relating to ITA No.953/Ahd/2024: 8. Upon considering the submissions and facts on record, we observe that the appeal of the assessee relating to the rejection of registration under Section 12A of the Act has been allowed us in ITA No.952/Ahd/2024, setting aside the order of the Ld.CIT(E). In view of this, the rejection of the application under Section 80G(5) of the Act by the Ld.CIT(E) also need to be reconsidered. 9. It is also pertinent to note that Circular No.7/2024 of the Central Board of Direct Taxes (CBDT) dated 25-04-2024 has extended the date of filing an application till 30-06-2024 even in case of the application under Section 80G of the Act. 9.1. Consequently, we set aside the order of the Ld.CIT(E) dated 07-03-2024 rejecting the application under Section 80G(5) of the Act and direct the Ld.CIT(E) to reconsider the application afresh in accordance with law and in light of the aforesaid CBDT Circular. 10. In conclusion, the appeal of the assessee-trust in ITA No.953/Ahd/2024 is allowed for statistical purposes, and the matter is ITA Nos.952 & 953/Ahd/2024 Shri Kunpara Kadva Patidar Samaj Seva Trust vs. The CIT(E) 6 remanded back to the Ld.CIT(E) for fresh adjudication of the application under Section 80G(5) of the Act. 11. In the combined result, both the appeals of the Assessee are treated as partly 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 (word processed by Hon’ble AM in his laptop) : 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 :