MAITREEY PREKSHA SEVA MISSION,VASANT KUNJ V. COMMISSIONER OF INCOME TAX - EXEMPTION, CIVIC CENTRE

ITA 6071/DEL/2024

AI Insights

The case involves Maitreey Preksha Seva Mission, a trust, which appealed against the rejection of its applications for regular registration under sections 12A(1)(ac)(iii) and 80G(5)(iii) of the Income Tax Act by the Commissioner of Income Tax (Exemption). The tribunal found that the principles of natural justice were not adhered to, as the CIT(E) did not consider the adjournment request made by the assessee and passed the order swiftly without a proper hearing. The tribunal thus remanded the matter back to the CIT(E) for a fresh decision after a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38134 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KAUSHAL
• Assessee Lawyers: R.S. SINGHVI
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘E’: NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA Nos.6070 & 6071/DEL/2024 [Assessment Year 2023-24] Maitreey Preksha Seva Mission, L-27/A, Vasant Kunj Pocket-A, Sheikh Sarai Phase-II, Delhi-110017 Vs Commissioner of Income Tax (Exemption), Civic Centre, Minto Road, Delhi-110002 PAN-AABTM5442P Assessee Revenue Assessee by Shri R.S. Singhvi, CA, Shri Rajat Garg, CA & Shri Satyajeet Goyal, CA Revenue by Shri Sanjeev Kaushal, CIT-DR Date of Hearing 12.03.2025 Date of Pronouncement 04.04.2025 ORDER PER MADHUMITA ROY, Both the appeals filed by the assessee are directed against the order both dated 18.12.2024 passed by learned Commissioner of Income Tax (Exemption), Delhi (hereinafter referred to ‘the CIT(E)’), whereby and whereunder the application dated 27.06.2024 preferred by the assessee in Form 10AB for regular registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) and also the application in Form 10AB for regular approval u/s 80G(5)(iii) of the Act stood rejected. 2 ITA Nos.6070 & 6071/Del/2024 2. Since, the issues are common and connected, hence, the appeals were heard together and are being consolidated and disposed of by this common order. 3. The brief facts leading to the issue is that the applicant is a trust and incorporated on 29.11.2004 vide registration no. 22142 issued from the office of Registrar, New Delhi, who has also obtained provisional registration vide CPC Order No.AABTM5442PE20206 dated 25.07.2021 under sub-clause (iv) of clause (ac) of the Act. The applicant preferred an application on 27.06.2024 in Form 10AB for regular registration u/s 12A(1)(ac)(iii) of the Act. The main objects of the applicant as reflected in Form No.10AB is granting relief the poor, advancement of any other object of general public utility. The copy of the trust deed in support of its activities rendered by the assessee was duly submitted before the authorities below. In fact, the details as sought for by the CIT(E) was duly furnished by the assessee in support of the charitable activities carried out as per the objects of the trust deed. However, the ld. CIT(E) concluded that the assessee has not filed the details despite many opportunities were provided and thus the genuineness of the activities of the assessee was not satisfied, hence, the application in Form No.10AB for regular registration u/s 12A(1)(ac)(iii) of the Act stood rejected. The provisional registration granted vide order dated 27.05.2021 for the period from Assessment Years 2021-22 to 2023-24 also stood cancelled. 4. At the time of hearing of the matter, the ld. Sr. Counsel appearing for the assessee submitted before us that the copy of the each of the documents mainly the registration under FCRA dated 07.03.2008 issued by 3 ITA Nos.6070 & 6071/Del/2024 the Ministry of Home Affairs, the statement of accounts and the utilization certificate of the trust in Form No.10AB, copy of registration u/s 80G of the Act dated 26.05.2011 as annexed to the paper book filed before us were duly submitted before the ld. CIT(E). It was further submitted by him that on 14.12.2024 on a Saturday, the assessee sought for adjournment which was sent through e-mail, the proof whereof annexed to the paper book at page-131 is also made available before us, the same was not considered by the ld. CIT(E) and the order impugned was passed on 18.12.2024, i.e. within three working days. Thus, the principle of natural justice has not been adhered to while dismissing the application u/s 12A(1)(ac)(iii) of the Act was made by the Ld. CIT(E) as was the main contention made by the Ld. AR. 5. Similarly, the application as made by the assessee u/s 80G(5)(iii) of the Act was rejected as the applicant has not submitted provisional approval u/s 80G(5)(iv) of the Act, which is again objected by the ld. Sr. Counsel appearing for the assessee. However, the fact of not granting adjournment by the Ld. CIT(E) in spite of request made by the applicant on 14.12.2024 and disposing of the application forthwith by the said authority without granting further opportunity of being heard to the assessee has not been able to controverted by the ld. CIT-DR. Thus, under these facts and circumstances of the matter, the ld. Sr. Counsel appearing for the assessee prays for a further opportunity of being heard by the ld. CIT(E) in respect of application made by the assessee for registration u/s 12A(1)(ac)(iii) and 80G(5)(iii) of the Act. The ld. Sr. Counsel appearing for the assessee also prays for the direction upon the said authority to consider the evidence on 4 ITA Nos.6070 & 6071/Del/2024 record as already indicated hereinabove or any other evidence in support of the case made out by the assessee for grant of registration u/s 12A(1)(ac)(iii) and 80G(5)(iii) of the Act. 6. Having heard the ld. Counsels appearing for the parties and having regard to the facts and circumstances of the matter, particularly the application seeking adjournment of the procedure pending before the ld. CIT(E) on 14.12.2024 having not been considered, we find that the principle of natural justice has not been adhered to and thus, we deem it fit and proper to grant further opportunity of being heard to the assessee by the said authority for getting its applications considered appropriately. We, thus, dispose of these two appeals by directing the issues to the file of the ld. CIT(E) for considering of the same afresh upon granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter and pass a reasoned order. 7. In the result, both appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 04th April, 2025. Sd/- Sd/- [NAVEEN CHANDRA] [MADHUMITA ROY] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 04.04.2025 f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Assessee 2. Respondent 3. PCIT 4. CIT(A) 5 ITA Nos.6070 & 6071/Del/2024 5. DR Asst. Registrar, ITAT, New Delhi "