SHREE PATIDAR VIKAS TRUST, DANODARADA V. Commissioner of Income Tax (Exemption), Ahmedabad

ITA 980/AHD/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3059 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 01-04-2024
• Assessment Year: misc
• Appeal Filed On: 01-12-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HASMUKH V. DOSHI
• Keywords: Opportunity of being heard
• Section: 154; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I .T .A . No .9 80 /A h d / 20 23 ( A s s e s s me nt Y ea r : N. A .) Sh re e P at id a r V i ka s Tr us t, V il l. D an o d a ra da , TA . C ha n a s ma , D i st. P at a n , G uj a r a t - 38 4 2 25 V s.I nc o m e Ta x O f f ic e r ( E x e m p ti on ) Pa l an pu r , P ala n pu r , G uj a r at - 3 8 5 00 1 [P A N N o .AA MT S9 15 4 R] (Appellant) .. (Respondent) Appellant by : Shri Hasmukh V. Doshi, C.A. Respondent by: Shri Santosh Kumar, Sr. DR D a t e of H ea r i ng 02.04.2024 D a t e of P r o no u n ce me nt 10.04.2024 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 06.10.2023. 2. The Assessee has taken the following grounds of appeal:- “1. Learned CIT(Exemption) erred in law and facts by making the order u/s 12AB(b)(ii)(B) by rejecting the application filed in form 10AB for registration u/s 12(1)(ac)(iii) of the Act without affording a reasonable opportunity of being heard. 2. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 3. The brief facts of the case are that the assessee filed application for registration of Trust under Section 12AB of the Act on 11.04.2023 in Form 10AB. The Trust had earlier been granted provisional registration on 01.02.2023. The Ld. CIT(E) gave two notices of hearing dated 11.08.2023 ITA No. 980/Ahd/2023 Shree Patidar Vikas Trust vs. ITO(E) Asst.Year –N.A. - 2– and 15.09.2023, in response, which the assessee did not file any written submission nor sought any adjournment. Accordingly, Ld. CIT(E) rejected the application filed by the assessee on the ground that the assessee failed to furnish note on activities of the applicant trust and also other details called for vide notices dated 11.08.2023 and 15.09.2023 and accordingly, the Ld. CIT(E) could not satisfy himself about the genuineness of the activities of the applicant trust and nor could the CIT(E) verify that the activities of the trust are in consonance with the objects of the trust. Accordingly, Ld. CIT(E) rejected the application filed by the assessee trust. 4. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(E) dismissing the appeal of the assessee. Before us, the Counsel for the assessee submitted that the Ld. CIT(E) had issued two notices at very short intervals and since the assessee is not in the habit of viewing the e-portal, the assessee was not aware about the notices and the assessee could not respond to the same. Subsequently, the applicant made enquiry with his Chartered Accountant regarding the status of the application for registration, and then the Chartered Accountant of the assessee observed that there were two notices which remained to be complied with. Thereafter, the applicant submitted reply on 06.10.2023 in response to notice dated 11.08.2023 and subsequently, the Chartered Accountant of the assessee observed that the Ld. CIT(E) had passed order dated 06.10.2023 rejecting the application filed in Form 10AB for grant of registration under Section 12AB of the Act. The Counsel for the assessee submitted before us that the non-compliance on part of the assessee / applicant was issued to ignorance of knowledge of the assessee trust about technicalities of the procedure for giving responses. ITA No. 980/Ahd/2023 Shree Patidar Vikas Trust vs. ITO(E) Asst.Year –N.A. - 3– Further, the Counsel for the assessee submitted that many details were filed / attached with application in Form 10AB like registration certificate, trust deed, audit reports for F.Y. 2022-23 (as trust was registered on 06.01.2022) and on the basis of these details, the Ld. CIT(E) could have verified the genuineness of the activities of the trust and could have granted registration under Section 12AB of the Act. Accordingly, in the interest of justice, the Counsel for the assessee submitted that the assessee / applicant has a very good case on merits and the assessee may be granted an opportunity of being heard in support of it’s case for registration of trust under Section 12AB of the Act. 5. In response, Ld. D.R. also did not object to the matter being restored to the file of Ld. CIT(E) for giving due opportunity of hearing to the assessee and to pass order on merits, in accordance with law. 6. Looking into the instant facts, in the interest of justice, the matter is being restored to the file of Ld. CIT(E) for de-novo consideration, after giving due opportunity of hearing to the assessee. 7. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 10/04/2024 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 10/04/2024 TANMAY, Sr. PS TRUE COPY ITA No. 980/Ahd/2023 Shree Patidar Vikas Trust vs. ITO(E) Asst.Year –N.A. - 4– आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 08.04.2024 2. Date on which the typed draft is placed before the Dictating Member 08.04.2024 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S 09.04.2024 5. Date on which the fair order is placed before the Dictating Member for pronouncement .04.2024 6. Date on which the fair order comes back to the Sr.P.S./P.S 10.04.2024 7. Date on which the file goes to the Bench Clerk 10.04.2024 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..........................................