SAI SEVA SANSTHAN,KANPUR V. COMMISSIONER OF INCOME TAX , LUCKNOW

ITA 751/LKW/2024

AI Insights

The case involves M/s Sai Seva Sansthan, a trust engaged in charitable activities such as running Old Age Shelters and Ghaushala, which applied for registration under section 12A and approval under section 80G(5) of the Income Tax Act, 1961. Both applications were rejected by the CIT (Exemption) on grounds of noncompliance, which the assessee contested, claiming lack of notice and opportunity to present their case. The Tribunal found merit in the assessee's plea for a fair hearing and set aside the CIT (E)'s orders, restoring the matter for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361100 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.K. AGARWAL
• Assessee Lawyers: ASHISH JAISWAL
• Keywords: Set aside; Opportunity of being heard
• Section: 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “A”, LUCKNOW BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA Nos.751 & 750/LKW/2024 Assessment Year: N.A. M/s Sai Seva Sansthan 706, Jyoti Heights 127/219A, Juhi Kalan Juhi Colony, Kanpur v. The CIT (Exemption) Lucknow TAN/PAN:ABLAS3073J (Appellant) (Respondent) Appellant by: Shri Ashish Jaiswal, Advocate Respondent by: Shri R. K. Agarwal, CIT(DR) Date of hearing: 07 05 2025 Date of pronouncement: 22 05 2025 O R D E R PER BENCH: These appeals have been preferred by the assessee against separate orders, both dated 24.09.2024, passed by the ld. Commissioner of Income Tax (Exemption) [hereinafter called the ‘Ld. CIT(E)’], Lucknow, rejecting the assessee’s applications for registration under section 12A of the Income Tax Act, 1961 (hereinafter called ‘the Act’) and for grant of approval under section 80G(5) of the Act. 2. The assessee has raised the following grounds of appeals: GROUNDS IN ITA NO.751/LKW/2024: ITA Nos.751 & 750/LKW/2024 Page 2 of 6 1. That the appellant in the form of Trust is carrying charitable activities of running Old Age Shelters and Ghaushala u/s 2(15) of the Income Tax Act, 1961 and has applied for registration u/s 12A(1)(ac) (iii) of the Income Tax Act, 1961 which has been rejected by Id. CIT (Exemption) u/s 12AB(1)(b)(ii)(B) of the Income Tax Act, 1961 on account of noncompliance by the appellant. 2. That the appellant was not aware of the correspondence/ notice of hearing sent by the office of Id. CIT (Exemption) because of which unwillingly compliance could not be made before the Id. CIT and request your honour to provide an opportunity to be heard before the Id. CIT (Exemption) in the interest of justice. 3. That the Id. CIT (Exemption) has erred in rejecting the application in absence of any finding on merit on the basis of facts and material available on record. 4. That the appellant craves leave to introduce, modify or withdraw any ground of appeal with your honours kind permission. GROUNDS IN ITA NO.750/LKW/2024: 1. That the appellant in the form of Trust is carrying charitable activities of running Old Age Shelters and Ghaushala u/s 2(15) of the Income Tax Act, 1961 and has applied for registration u/s 80G(5) (iv) of the Income Tax Act, 1961 which has been rejected by Id. CIT (Exemption) u/s 80G(5)(ii)(b)(B)of the Income Tax Act, 1961 on account of noncompliance by the appellant. ITA Nos.751 & 750/LKW/2024 Page 3 of 6 2. That the appellant was not aware of the correspondence/ notice of hearing sent by the office of Id. CIT(Exemption) because of which unwillingly compliance could not be made before the Id. CIT and request your honour to provide an opportunity to be heard before the Id. CIT(Exemption) in the interest of justice. 3. That the Id. CIT (Exemption) has erred in rejecting the application in absence of any finding on merit on the basis of facts and material available on record. 4. That the appellant craves leave to introduce, modify or withdraw any ground of appeal with your honours kind permission. 3. The Ld. Authorized Representative for the assessee submitted that there is a delay of 20 days each in filing the appeals before the Tribunal. He submitted that the assessee had filed an application for condonation of delay, duly supported by an Affidavit of one Shri Prakash Pal (staff of the Counsel of the assessee), stating therein that the deponent had paid challan for appeal fee on 21.11.2024 and Form No.36 and grounds of appeals were also prepared well in time, but due to inadvertent mistake by the deponent working with the Counsel of the assessee, the appeals memo file got mixed up with other case files and could not be filed within the stipulated time. It was prayed by the Ld. A.R. that the delay caused in filing the appeals ITA Nos.751 & 750/LKW/2024 Page 4 of 6 was not deliberate and that it was beyond the control of the assessee, which may please be condoned and the appeals be heard on merits. 4. The ld. CIT (D.R.) had no objection to the delay being condoned. 5. In view of the prayer made on behalf of the Assessee, duly supported by Affidavit and no objection by the ld. CIT (D.R.), we condone the delay in filing of the appeals and admit the appeals for hearing. 6. During the course of hearing, the Ld. Authorized Representative for the assessee (Ld. A.R.) submitted before us that the applications of the assessee for registration under section 12A of the Act and grant of approval under section 80G(5) of the Act were rejected by the ld. CIT(E) by passing ex-parte orders. The Ld. A.R. further submitted that notice of hearing sent by the Office of the Ld. CIT(E) had not been received by the assessee and, therefore, no compliance could be made before the ld. CIT(E). The Ld. A.R. prayed that the ex-parte orders passed by the ld. CIT(E) be set aside and the matter be restored back to the file of the ld. CIT(E) for the deciding the same afresh after affording reasonable opportunity to the assessee. ITA Nos.751 & 750/LKW/2024 Page 5 of 6 7. Per contra, the Ld. CIT(D.R.) opposed the prayer of the assessee for being given another opportunity. 8. We have heard both the parties and after having gone through the material on record, we note that the ld. CIT (Exemption) had rejected the applications of the assessee for registration under section 12A of the Act and approval under section 80G(5) of the Act by passing orders ex-parte qua the assessee. The submission of the Ld. A.R. was that no notice of hearing sent by the Office of the Ld. CIT(E) had been received by the applicant-assessee and, therefore, no compliance could be made before the ld. CIT(E). Under these facts, we feel that one more opportunity should be given to the assessee to explain its case before the ld. CIT (E), as the assessee has not been given proper and sufficient opportunity before disposing of the application for registration under section 12A of the Act and grant of approval under section 80G(5) of the Act by the ld. CIT (E). We, therefore, set aside the orders of the ld. CIT (E) and restore both the matters to his file with the direction to consider the application of the assessee for registration under section 12A of the Act and grant of approval under section 80G(5) of the Act after giving proper and sufficient opportunity of being heard to the assessee. The assessee is also directed to provide the material/clarification as asked for by the ld. CIT (E). ITA Nos.751 & 750/LKW/2024 Page 6 of 6 9. In the final result, both the appeals of the assessee stand allowed for statistical purposes. Order pronounced in the open Court on 22/05/2025. Sd/- Sd/- [NIKHIL CHOUDHARY] [SUDHANSHU SRIVASTAVA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:22/05/2025 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR By order Assistant Registrar/DDO "