MAA CHARITABLE TRUST,AKSHARDHAM TEMPLE V. CIT(EXEMPTION), CIVIC CENTRE

ITA 5229/DEL/2024

AI Insights

The case involves Maa Charitable Trust appealing against the order of the CIT(E) which rejected their application filed in Form 10AB and cancelled their provisional registration under section 12A of the Income Tax Act, 1961. The trust argued that the rejection was arbitrary, based on conjecture and surmises, and without proper consideration of their submissions. They also contended that the rejection was made without adhering to the principles of natural justice, as they were not provided an adequate opportunity to be heard. The Tribunal, after hearing the Department's representative and perusing the case records, decided to set aside the issue to the CIT(E) for fresh consideration, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470521 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2024-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RISHIPAL BEDI
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

"ITA No. 5229/DEL/2024 Maa Charitable Trust IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 5229/DEL/2024 [A.Y. 2024-25] Maa Charitable Trust Vs. The C.I.T(E) Akshardham Temple, 503, Tower 25, New Delhi Common Wealth Games Village IP Extension, Delhi PAN – AAGTM 8299 P (Applicant) (Respondent) Assessee By : None Department By : Shri Rishipal Bedi, CIT- DR Date of Hearing : 06.03.2025 Date of Pronouncement : .03.2025 ORDER PER NAVEEN CHANDRA, A.M:- This appeal by the assessee is preferred against the order of the ld. CIT(E), dated 06.08.2024 for A.Y 2024-25. ITA No. 5229/DEL/2024 Maa Charitable Trust Page 2 of 6 2. The assessee has raised the following grounds of appeal: “1. That on the facts and circumstances of the appellant's case, Hon'ble CIT (Exemption), Delhi erred in rejecting the application filed in Form10AB vide order passed under section 10AD on 06.08.2024 along with provisional registration granted under sub-Clause (iv) of clause (ac) sub-section (1) of section 12Aof the Income Tax Act, 1961 vide UR No. AAGTM8299PE20216 valid from A.Y 2022-23 to A.Y 2024-25 arbitrarily and prejudicially without considering the submission and information submitted by the appellant only on the basis of conjecture and surmises. Thus, rejection of application and cancellation of provisional registration is completely bad in law and liable to be quashed. 2. That on the facts and circumstances of the appellant's case, Hon'ble CIT NA (Exemption), Delhi erred in rejecting the application filed in Form10AB vide order passed under section 10AD on 06.08.2024 along with provisional registration granted under sub- Clause (vi) of clause (ac) to sub-section (1) of section 12Aof the Income Tax Act, 1961 vide UR No. AAGTMB299PE20216 valid from A.Y 2022-23 to A.Υ 2024-25 valid from Λ.Υ 2022-23 to A.Υ 2024- 25 without adhering to the principles of natural justice. The appellant was not provided an adequate opportunity to be heard or present their case before the rejection was made. This denial of a fair hearing constitutes a violation of the basic principles of natural justice, rendering the order unjust and unfair. Thus, rejection of application ITA No. 5229/DEL/2024 Maa Charitable Trust Page 3 of 6 and cancellation of provisional registration is completely bad in law and liable to be quashed. 3. That the appellant craves to add, alter, delete, modify or withdraw any of the above grounds of appeal.” 3. None appeared on behalf of the assessee. We decided to proceed ex- parte. The ld. DR was heard at length. Case records carefully perused. 4. A perusal of the grounds of appeal raised by the assessee reveal that the grievance of the assessee is that the ld. CIT(E) was not justified in in rejecting the application filed in Form10AB vide order passed under section 10AD on 06.08.2024 along with provisional registration granted under sub- Clause (iv) of clause (ac) sub-section (1) of section 12A of the Income Tax Act, 1961 arbitrarily and prejudicially without considering the submissions and information submitted by the assessee only on the basis of conjecture and surmises. The rejection of application and cancellation of provisional registration is completely bad in law and liable to be quashed. ITA No. 5229/DEL/2024 Maa Charitable Trust Page 4 of 6 5. Vide ground No. 2, it is the grievance of the assessee that the assessee was not provided an adequate opportunity to be heard or present their case before the rejection was made. This denial of a fair hearing constitutes a violation of the basic principles of natural justice, rendering the order unjust and unfair. Thus, rejection of application and cancellation of provisional registration is completely bad in law and liable to be quashed. 6. The ld DR of the Revenue relied on the orders of the ld. CIT(E). 7. We have heard the rival submissions and have perused the relevant material on record. We find that the ld. CIT(A) should have given adequate opportunity to the assessee to present its case. We are, therefore, of the considered opinion that in the interest of natural justice, the issue u/s 12A of the Act be set aside to the file of the ld. CIT(E) for consideration afresh. ITA No. 5229/DEL/2024 Maa Charitable Trust Page 5 of 6 8. The ld. CIT(E) is directed to afford adequate opportunity to the assessee of being heard as per principle of natural justice and adjudicate the issue of registration u/s 12A of the Act. Accordingly, the grounds of appeal raised by the assessee are allowed for statistical purposes. 9. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open court on 12.03.2025. Sd/- Sd/- [MADHUMITA ROY] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 12th MARCH, 2024. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi ITA No. 5229/DEL/2024 Maa Charitable Trust Page 6 of 6 Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order… 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 3. Date on which the fair Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S./P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S./P.S. on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial 11. The date on which the file goes to the Assistant Registrar for endorsement of the order 12. Date of Despatch of the Order "