CIT(EXEMPTION), AHMEDABAD V. DANG JILLA PARAGLIDING ADVENTURE ASSOCIATION, DANG

MA 46/SRT/2023

AI Insights

The case involves the Income Tax Department (Revenue) and Dang Jilla Paragliding Adventure Association concerning the grant of registration under section 12AA of the Income Tax Act, 1961. Initially, the Tribunal had remitted the issue back to the CIT(Exemption) for fresh adjudication without commenting on the merits. However, the Revenue pointed out a mistake in the Tribunal's order, noting that section 12AA had become inoperative as of 01/04/2021, and the correct reference should be section 12AB. The Tribunal acknowledged the error and corrected the reference in their order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301715 (ITAT-SURAT)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-10-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-08-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 15-06-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Assessment record
• Section: 10; 12A; 12AA; 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM Miscellaneous Application No.46/SRT/2023 [Arising out of ITA No.35/SRT/2020] Assessment Year: (2019-20) (Physical Hearing) The ITO (Exemption), Ward, Surat Vs. Dang Jilla Paragliding Adventure Association, O, Saputara, At & P.O. Talahwa, Dang – 394720. (Appellant) (Respondent) èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AABTD9827D Appellant by Shri Vinod Kumar, Sr. DR Respondent by Ms Chaitali Shah, CA Date of Hearing 18/08/2023 Date of Pronouncement 04/10/2023 आदेश / O R D E R PER DR. A. L. SAINI, AM: By way of the captioned Miscellaneous Application, the Revenue has sought to point out that a mistake apparent from record within the meaning of section 254(2) of the Income Tax Act, 1961 (in short ‘the Act’) has crept in the order of the Tribunal dated 02.02.2023. 2. The grievances raised by the Revenue in this Miscellaneous Application, are as follows: “2. In this connection, this is humbly submitted that Hon'ble Tribunal vide order No. 35/SRT/2020 dated 02.02.2023, has restored the issue of grant of Registration u/s 12AA of the Act to the CIT(Exemption), Ahmedabad for fresh adjudication after giving due opportunity of hearing to the assessee to present its case on merits. 3. In this respect it is humbly submitted that the said order has been passed on 02.02.2023 and Hon'ble Tribunal has not considered the relevant provision of Act which stood after 01/04/2021. The matter relates to grant of registration U/S.12AA of the Act and it is brought to kind notice of the Hon'ble Tribunal that the provisions of section 12AA of the Act has become inoperative w.e.f. 01/04/2021 by inserting the sub-section (5) in section 12AA of the Act, which Page | 2 MA.46/SRT/2023/AY.2019-20 Dang Jilla Paragliding Adventure Association stipulates that “Nothing contained in this section shall apply on or after the 1st day of April 2021”. 4. It is also submitted that the provision of section 12AA of the Act is procedural or machinery in nature and once the same becomes inoperative then no action can be taken therein after the date on which it has become inoperative. Further, once the order of rejection of CIT(Exemption), Ahmedabad refusing to grant registration u/s.12AA of the Act has been set- aside by the Hon'ble Tribunal and the matter has been sent back to the file of CIT(Exemption) apparently the original application u/s. 12AA of the Act would tantamount to be pending as on date and as per strict interpretation of the provisions of section 12AB(2) of the Act may need to be treated as deemed to be an application made under sub-clause (vi) of clause(ac) of sub-section (1) of section 12A of the date on which section 12AB of the Act has come into force. 5. In view of the above, the Hon'ble Tribunal is humbly requested to consider the above referred provisions of law and suitable modify the above referred order passed in ITA No. 35/SRT/2020 dated 02.02.2023 and upheld the order of the CIT(E), Ahmedabad.” 3. Based on the above facts, learned Departmental Representative (ld. DR) for the Revenue contended that Tribunal has committed an error in quoting section 12AA instead of section 12AB of the Act, in its order. 4. On the other hand, Ld. Counsel for the assessee defended the order passed by the Tribunal and stated that Tribunal has rightly remitted the issue back to the file of the ld. CIT(E) for fresh adjudication. The ld. DR further stated that typographical error in quoting the section may be rectified. 5. We have heard both the parties and perused the material available on record. We note Tribunal has passed the order in assessee’s case in ITA No.35/SRT/2020, dated 02.02.2023 wherein it was held as follows: “10. We have heard both the parties and we note that in the assessee’s case under consideration, the matter is relating to registration of the Trust u/s 12AA of the Act and the impugned order passed by the ld. CIT(Exemption), is an ex parte order and non-speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee. The ld. CIT(Exemption) has not examined assessment records and relevant documents and has not passed any speaking order. Considering the above facts, we note that assessee could not plead its case successfully before the ld. CIT(Exemption). We note that it is settled law that Page | 3 MA.46/SRT/2023/AY.2019-20 Dang Jilla Paragliding Adventure Association principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest its case. Considering the above facts and keeping in view the principle of natural justice, the matter is remitted back to the file of Ld. CIT(Exemption) to decide the case afresh. Needless to say, that before deciding the application, Ld. CIT(Exemption) shall grant opportunity of hearing to the assessee to furnish necessary details and information. The assessee is also directed to be more vigilant and make full compliance with the notices issued by Ld. CIT(Exemption) and not to seek adjournment without any valid reasons. Hence, for statistical purposes, the appeal of the assessee is treated to be allowed. 11. In the result, appeal of the assessee allowed for statistical purposes.” 6. We have gone through the findings of the Tribunal which is mentioned above and noted that there is no apparent mistake on record in directing the ld. CIT(E) to hear the assessee afresh and pass the order afresh. The Tribunal has remitted the entire issue back to the file of ld. CIT(E) for statistical purposes. However, there is mistake in quoting the “section 12AA” instead of “section 12AB” of the Act. Therefore, reference of section in para 10 of the Tribunal order should be read as “section 12AB” of the Act. 7. In the result, Miscellaneous Application filed by the Revenue is allowed to the extent indicated above. Order is pronounced on 04/10/2023 in the open court. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 04/10/2023 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