Appeal Details
Counselvise Citation
[2024] 100 COUNSELVISE.COM (IT) 1731 (ITAT-SURAT)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 8 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
06-06-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
05-06-2024
Assessment Year
misc
Appeal Filed On
28-01-2024
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.96/SRT/2024 (Hybrid Hearing) Varacha Katargam Jewellers Association, 428, 1 st Floor, Near Bhavani Mandir, Matawadi L.H. Road, Surat – 395006 Vs. The CIT(Exemption), Ahmedabad èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AADTV2355C (Appellant) (Respondent) Appellant by Shri Suresh K. Kabra, CA Respondent by Shri Ravi Kant Gupta, CIT(DR) Date of Hearing 06/06/2024 Date of Pronouncement 07/06/2024 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal emanates from the order dated 28.11.2023 passed by the Learned Commissioner of Income-tax (Exemption), Ahmedabad [in short, “the Ld. CIT(E)”], wherein Ld. CIT(E) rejected assessee’s application filed in Form No.10AB u/s 12A(1)(ac)(iii) of the Income-tax Act (for short, ‘the Act’) and also cancelled the provisional registration. 2. The grounds of appeal raised by the assessee are as follows: “1. The Ld. CIT(E) was not just and proper on the facts of the case and in law in rejecting the application of the Trust for approval u/s 12AB. 2. PRAYER 2.1 The rejection order may be recalled and approval u/s 12AB may be directed to be allowed to the Appellant. 2.2 Personal hearing may be granted. 2.3 Any other relief that your honors may deem fit may be quashed.” 2 ITA No.96/SRT/2024 Varacha Katargam Jewellers Association 3. The appellant craves leave to add, amend, alter or delete any or all of the above ground of appeals.” 3. The fact of the case in brief are that the assessee filed an application for registration/incorporation in Form No.10AB u/s 12A(1)(ac)(iii) of the Act on 24.01.2020. The assessee-trust had been granted order for provisional approval in Form No.10AC issued on 19.01.2023 under clause (vi) of clause (ac) of sub-section (1) of section 12A of the Act for the period commencing from AY.2023-24 to AY.2025-26. In respect of the application filed by the assessee-trust in Form No.10AB, the assessee-trust was asked to file details and documents vide notice dated 30.09.2023. Against the said notices, the assessee has submitted certain detail and document on 09.10.2023 and 05.11.2023. On perusal of details and documents submitted by the assessee, the Ld. CIT(E) found that the activities of assessee-trust are not in-line with the objects. A notice/letter was issued to the assessee on 07.11.2023, requesting to submit requisite details and documents. Further, a final notice was issued to the assessee to submit details, documents and clarification as sought on or before 14.11.2023. 4. The Ld. CIT(E) observed that the assessee has submitted that they “want to conduct various seminar, lecture regarding Jewellers business like new technologies updating, new design/creation updation, job opening in jewellers industries for all public and conduct various seminar for person who want to join with jewellery business likes various job opening opportunity for new person for joining business and giving guideline 3 ITA No.96/SRT/2024 Varacha Katargam Jewellers Association regarding jewels business, regular updating regarding advantage and disadvantage regarding jewels business for all public.” As per section 12AB of the Act, before granting registration under this section, the Commissioner has to satisfy himself about the genuineness of the activities of the trust or institution and also he has to verify that these activities are in consonance with the objects of the trust or institution. The Ld. CIT(A) was not satisfied as the assessee has failed to the file document evidences to enable him to verify (i) genuineness of the activities of the trust or institution, (ii) the activities of trust or institution are in consonance with the objects of the trust or institution, and (iii) other laws material for the purpose of achieving objects are complied with. The Ld. CIT(E) could not verify the objects as well as activities of the assessee-trust. Thus, the genuineness of the activities was not established due to non-compliance of the assessee In absence of requisite details, the application for registration of assessee-trust was rejected by the Ld. CIT(E) based on material available on record. 5. The Learned Authorized Representative (Ld. AR) 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). The Ld. AR of the assessee submitted that the object of the assessee-trust is to run primary health centers and hospitals and to provide free medicines. The object of the trust is also to provide relief and help people affected by man-made or natural droughts, epidemics, earthquakes, fires, storms and other calamities and to provide selfless service to the society with a broad vision, to support 4 ITA No.96/SRT/2024 Varacha Katargam Jewellers Association service areas for physically and mentally challenged people, to open shelter for orphans, retirement homes (old age homes) for the needy elderly, to assist the poor and widows. The objects of the assessee-trust are also to develop villages, carry out agricultural works, as well as to make efforts to solve various problems. The Ld. AR further submitted that now the assessee is ready to submit relevant documents and details before the Ld. CIT(E) and hence matter may be remitted back to the file of the Ld. CIT(E) for fresh adjudication on merit. 6. On the other hand, learned Commissioner of Income Tax – Departmental Representative (Ld. CIT-DR) for the Revenue submitted that assessee-trust was negligent during the proceedings before Ld. CIT(E). Therefore, the appeal of the assessee may be dismissed. 7. We have head both the parties and perused the material available on record. The Ld. CIT(E) issued three notices on 30.09.2023, 07.11.2023 and 09.11.2023, but there was part compliance from the assessee. The Ld. CIT(E) has observed that the assessee failed to file documentary evidence to enable him to satisfy about the genuineness of the activities of the trust and whether these activities are in consonance with the objects of the trust. The Ld. AR has contended before us that the principles of natural justice was not adhered to and the assessee is ready to submit all details and evidences needed by the Ld. CIT(E) and one more opportunity may be given to present its case. We find that assessee could not pursue his case before the Ld. CIT(E) by filing necessary evidences and documents. Hence, we are of the 5 ITA No.96/SRT/2024 Varacha Katargam Jewellers Association 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). It is settled law that principles of natural justice 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 the matter back to the file of Ld. CIT(E) for de novo adjudication and to pass a speaking order after affording sufficient opportunity of being heard to the assessee. The assessee is also directed to file necessary documents and evidences as needed by the Ld. CIT(E). For statistical purposes, the appeal of the assessee is treated as allowed. 8. In the result, appeal of assessee is allowed for statistical purposes. Order is pronounced on 07/06/2024 in the open court. Sd/- Sd/- (PAWAN SINGH) (BIJAYANANDA PRUSETH) JUDICIAL MEMBER ACCOUNTANT MEMBER Surat Ǒदनांक/ Date: 07/06/2024 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
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