SAIFEE BURHANI UPLIFTMENT TRUST, MUMBAI V. CIT (EXEMPTION), MUMBAI

MA 286/MUM/2022

AI Insights

The case involves the Saifee Burhani Upliftment Trust, which filed Miscellaneous Applications against the orders of the Income Tax Appellate Tribunal concerning the assessment years 2016-17 and 2017-18. The Trust contended that the Tribunal's earlier decision mistakenly noted non-compliance with a notice under Section 263 of the Income-tax Act, 1961, claiming that they had sought an adjournment which was not considered. The Departmental Representative argued that the original order was correct. The Tribunal reviewed the submissions and the original order, concluding that the Trust's request for adjournment did not amount to compliance with the notice, and thus dismissed the MAs.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299478 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 20-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-10-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside
• Section: 263; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI PAVAN KUMAR GADALE, JM MA No. 285/Mum/2022 (Arising in ITA No. 589/Mum/2022 for A.Y. 2016-17) MA No. 286/Mum/2022 (Arising in ITA No. 590/Mum/2022 for A.Y. 2017-18) S a if e e B urh a n i U p l if t m e n t T r u s t Mu f f a d d a l S h o p p in g A r c a d e R am c h a n d r a B h a t t Ma r g , Um ar k h a d i, C h u n c h b u n d e r Mu m b a i-4 0 0 0 0 9 Vs. CIT (Exemption) Room No.617, 6 th Floor, Piramal Chambers, Lalbaug, Parel, Mumbai-400 012 (Applicant) (Respondent) PAN No. AAITS3160K Assessee by : None Revenue by : Ms. Mahita Nair, DR Date of hearing: 21.04.2023 Date of pronouncement : 11.07.2023 O R D E R PER PRASHANT MAHARISHI, AM: 01. MA Nos. 285 & 286/Mum/2022 is preferred by the assessee in ITA No.589 and 590/Mum/2022 dated 7 th July, 2022, stating that the above appeals were disposed off by the consolidated order of the co- ordinate Bench. 02. Assessee has pointed out mistake in the order of the coordinate bench stating that in paragraph no. 011., the co-ordinate bench has noted that notice under Section 263 of the Income-tax Act, 1961 (the Act) issued to the assessee’s trust on 24 th February, 2021, was not complied with whereas in paragraph no.15, the arguments of the learned CIT Departmental Representative was recorded and further in Paragraph no.22, it was held that the assessee may be granted an opportunity of hearing as the learned CIT (A) passed the order where Page | 2 MA Nos. 285 & 286 /Mum/2022 Saifee Burhani Upliftment Trust; A.Y. 16-17 & 17-18 assessee did not avail such facility. It is the claim of the assessee that Assessee has applied for adjournment before the lower authorities but such adjournment request was not considered therefore it is not the case that assessee did not comply with the notices. Thus, the observations of the coordinate bench in its orders are mistake apparent from record. Claim of the assessee in the Miscellaneous Applications is that the assessee has filed a paper book before the Tribunal wherein evidences were placed that assessee sought an adjournment before learned CIT (E), till 15 th March, 2021, which was not responded by the learned CIT (E) and therefore, the assessee is aggrieved by the fact where the Tribunal has noted the above finding. 03. At the time of hearing, it was found that assessee has submitted only a written submission and it was requested that above mistake may be rectified. 04. The learned Departmental Representative submitted that there is no error in the order of the co-ordinate Bench were the issue is set aside to the file of the learned Assessing Officer partly allowing the appeal of assessee for statistical purposes. 05. We have carefully considered the rival contentions and perused the orders of the co-ordinate Bench as well as the content of the Miscellaneous Applications and written submission placed before us on behalf of the assessee. In paragraph no.11, the co-ordinate Bench has categorically noted that notice under Section 263 of the Act was issued to the assessee’s trust on 24 th February, 2021. In fact assessee did not comply with the notice but merely filed an adjournment request seeking adjournment up to 15 th March, 2021. Therefore, there was no compliance with the notice of learned CIT (E) under Section 263 of the Act. Merely, seeking an adjournment is not the compliance of the notice. Further, the co-ordinate Bench has restored the matter back to the file of the learned Assessing Officer wherein it has directed the learned Assessing Officer to grant an opportunity of hearing to the assessee. It was also stated that Page | 3 MA Nos. 285 & 286 /Mum/2022 Saifee Burhani Upliftment Trust; A.Y. 16-17 & 17-18 assessee did not avail such facility before the learned Commissioner of Income Tax. Merely, making a request for adjournment is not an effective opportunity to represent the case of the assessee on the merit. Further as per the principles of natural justice, an opportunity of hearing is mandatory; therefore the LD AO is directed accordingly. Therefore, we do not find any error in the order of the co-ordinate Bench in paragraph no. 11 and 22 of the order. Hence we do not find any mistake which needs to be rectified in this case. The facts for both the case are similar and accordingly, we dismiss both the Miscellaneous Applications. 06. In the result, both the MAs are dismissed. Order pronounced in the open court on 11.07.2023. Sd/- Sd/- (PAVAN KUMAR GADALE) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 11.07.2023 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai