NIVEDITA CHARITABLE TRUST,MOHALI V. CIT(EXEMPTIONS), CHANDIGARH

ITA 454/CHANDI/2024

AI Insights

The case involves Nivedita Charitable Trust appealing against the orders of the Commissioner of Income Tax (Exemptions), Chandigarh, which were passed ex parte under sections 12AB and 80G(5) of the Income Tax Act, 1961. The appeals were related to the applications for registration under sections 12A(1)(ac)(iii) and 80G(5) of the Act. The primary contention of the assessee was the lack of proper notice and opportunity to be heard, which led to the appeals being filed. The Tribunal found merit in the assessee's arguments and decided to remand the case back to the CIT(E) for a fresh consideration, emphasizing the need for a reasonable opportunity of hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126637 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Assessee Lawyers: VIBHORE GARG
• Keywords: Set aside; Opportunity of being heard; Charitable institution
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, CHANDIGARH. BEFORE SH. RAJPAL YADAV, HON’BLE VICE-PRESIDENT AND SH. KRINWANT SAHAY, HON’BLE ACCOUNTANT MEMBER (Hybrid Hearing) I.T.A. Nos.453 and 454/Chandi/2024 Assessment Year: 2023-24 Nivedita Charitable Trust, H.No. 1206, Phase-2, Mohali Punjab. [PAN: AADTN1492N] (Appellant) Vs. CIT(Exemptions) Chandigarh. (Respondent) Appellant by Sh. Vibhore Garg, CA. Respondent by Smt. Kusum Bansal, CIT. DR Date of Hearing 21.04.2025 Date of Pronouncement 23.04.2025 ORDER Per: KRINWANT SAHAY, AM: Both the instant appeals of the same assessee are directed against the order of the ld. Commissioner of Income Tax (Exemptions), Chandigarh,[in brevity the ‘CIT (E)’], ex parte order passed u/s 12AB & 80G (5) of the Income Tax Act 1961, dated 23.09.2022 separately. I.T.A. Nos.453 and 454/Chandi/2024 Assessment Year: 2023-24 2 2 2. At the very outset both the appeals are related to application for registration u/s 12A(1)(ac)(iii) and u/s 80G(5) of the Act of the same assessee. 3. Considering both the parties ITA No. 454/Chandi/2024 is taken as lead case. 4. The assessee has taken the following grounds: “1. The impugned order is bad both on facts and law and is liable to be quashed. 2. That the ld. CIT(Exemptions)rejected the application for final approval of registration u/s 12AB in an ex parte order without allowing opportunity of being heard an without ensuring proper service of notice for fixation of the proceedings. 2. The appellant crave leave to add, amend, withdraw further grounds of appeal till the appeal is heard and disposed off”. 5. At the very outset the ld. counsel for the assessee submitted during proceedings before us that the order passed by the ld. CIT(E) is an ex parte order without allowing opportunity of being heard and without ensuring proper service of notice to the assessee. It was also submitted that the notices were not complied for simple reason that the assessee could not receive any notice issued by the ld. CIT(E). I.T.A. Nos.453 and 454/Chandi/2024 Assessment Year: 2023-24 3 6. The ld. AR of the assessee also filed affidavit for both the appeals which are reproduced as under: I.T.A. Nos.453 and 454/Chandi/2024 Assessment Year: 2023-24 4 I.T.A. Nos.453 and 454/Chandi/2024 Assessment Year: 2023-24 5 7. The ld. DR relied on the order of the ld. CIT(E). 8. We have heard the rival submission and considered the documents available in record. The application of final registration and application of 80G are rejected. The assessee has non-complied during the hearing before the ld. CIT(E). On perusal of the documents, we find that no notice was ever received by the assessee. Accordingly, the compliance could not be made by the assessee. The ld. counsel for the AR requested that in the interest of justice the matter should be remanded back to the ld. CIT(E) for fresh order. The ld. DR did not have any objection on this issue. Accordingly, this appeal is remanded back to the ld. CIT(E) for fresh order. 8.1 In our considered view the reasonable opportunity was not given to the assessee for submission of his evidence and documents. We are, therefore, of the view that in the interest of justice would be served if the impugned order is set aside and the matters are remitted back to the file of the ld. CIT(E) for consideration there of afresh. We are not expressing any views on the merits of the case so as to limit the proceeding before the ld. CIT(E). Further, the assessee should be diligent and comply the notice of the revenue. Needless to say, the assessee should get a reasonable opportunity of hearing. I.T.A. Nos.453 and 454/Chandi/2024 Assessment Year: 2023-24 6 9. As both the appeals are of same nature and fact. So, ITA No. 454/Chandi/2024 is mutatis mutandis applicable to the ITA No. ITA No. 453/Chandi/2024 and followed accordingly. 10. In the result, both the appeals of the assessee bearing ITA No. 454/Chandi/2024 and 453/Chandi/2024 are allowed for statistical purposes. Order pronounced in the open court on 23.04.2025 Sd/- Sd/- (Rajpal Yadav) (Krinwant Sahay) Vice-President Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By Order "