SARIPUTTA CHARITABLE TRUST,CHHINDWARA V. COMMISSIONER OF INCOME TAX (EXEMPTION), BHOPAL

ITA 127/JAB/2024

AI Insights

The case involves Sariputta Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Bhopal, which rejected their application for registration under section 12AB of the Income Tax Act, 1961. The primary contention was the lack of proper notice and opportunity to respond to the queries raised by the CIT (Exemptions), as the notices were not delivered in physical form to the appellant, who was a senior citizen and unaware of the emails. The tribunal found that the CIT (Exemptions) had not adequately served the notices or provided a fair opportunity for the trust to present its case, which constituted a violation of the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31807 (ITAT-JABALPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Other Referred Cases: Collector of Land Acquisition Vs. MST. Katiji & Ors 167 ITR 471 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAPAN USRETHE
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Principle of natural justice; Charitable institution

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH “DB”, JABALPUR BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI, NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA No. 127/JAB/2024 Assessment Year: 2022-23 Sariputta Charitable Trust Khajri Dhimradhan, Chhindwara, 480001. v. Commissioner of Income Tax (Exemption) Room No.201, II Floor, REAC, Bhopal, 462016, Madhya Pradesh. PAN:AARTS8965K (Appellant) (Respondent) Appellant by: Shri Sapan Usrethe, Adv Respondent by: None Date of hearing: 06 01 2025 Date of pronouncement: 07 01 2025 O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, filed by the assessee, against the impugned order dated 17/08/2023 of learned Commissioner Income Tax (Exemption), Bhopal [hereinafter referred as the “Ld.CIT(E)”], rejecting the assessee’s application for registration u/s 12AB of the Income Tax Act, 1961 (hereinafter referred to as the “Act”), pertaining to the assessment year 2022-23. The Assessee has raised the following grounds of appeals: - “1. On the facts and circumstances of the case that the Ld. CIT (E) has not served his Order passed on 17.08.2023 in its physical copy, due to which the appellant was completely unaware of such rejection of application that was filed under Form 10AB for registration u/s 12AB and the trustee in- charge for the appellant being a senior citizen was not aware of notice delivered on email either. 2. On the facts and circumstances of the case that the Ld. CIT (E) was not justified in rejecting the application in Form 10AB for granting of registration u/s 12AB of the Act due to noncompliance to notices dated 08.06.2023, 13.07.2023, 01.08.2023, which in first place was never delivered in physical copy to the appellant and the trustee in-charge for the ITA No.127/JAB/2024 Page 2 of 4 appellant being a senior citizen was not aware of notice delivered on email either. 3. On the facts and circumstances of the case that the Ld. CIT (E) was not justified in rejecting the application in Form 10AB for granting of registration u/s 12AB of the Act as appellant was prevented with reasonable and sufficient cause in not filing the reply, wherein the trustee in-charge was in critical medical condition ultimately leading to his sad demise later on, and hence rejection without giving proper opportunity is not justified. 4.On the facts and circumstances of the case that the Ld. CIT (E) was not justified in rejecting the application in Form 10AB for granting of registration u/s 12AB of the Act as appellant have already produced the record of charitable activities during the course of initial application made on 31.03.2023 and assessee gave their best effort to submit all details as required by the Form 10AB application process. 5. On the facts and circumstances of the case that the Ld. CIT (E) has not applied the skill carefully by ignoring the fact that all the requisites were available with the department which was submitted by the appellant with provisional registration application and again submitted with the application for permanent registration, which is in question and thus it was generally to assume that no further new information would be presented in the hearings, and the notice issued by the Ld. CIT (E) was merely an attempt for a procedural delay as the list of documents requested by the Ld. CIT (E) consisted majorly of the documents already submitted in the first place with the application u/s 12AB by way of Form 10AB. 6. On the facts and circumstances of the case that the Ld. CIT (E) was not justified in rejecting the application in Form 10AB for granting of registration u/s 12AB of the Act without properly appreciating the facts of the case and without hearing the interest of justice. 7. On the facts and circumstances of the case that the order of the Ld. CIT (E) rejecting the registration u/s 12AB of the Income Tax Act, 1961 dated 17.08.2023 is unjustified and against the principles of natural justice. 8. The appellant craves for leave to amend, add to or omit any ground up to the time of hearing of the appeal.” 2. At the outset, we find that the appeal filed by the assessee is time barred by 280 days, for which, a petition for condonation of delay in filing of the appeal explaining the reasons for delay, has been filed by the assessee (A copy of condonation of delay has also been enclosed). On the other hand, the Ld. DR opposed the submissions. 3. For the reasons stated in the application and looking into the facts of the case, we are of the view that there was reasonable ITA No.127/JAB/2024 Page 3 of 4 cause for delay in filing the appeal, we hereby condone the delay following the ratio laid down in the judgment of the Hon'ble Supreme Court in the case of Collector of Land Acquisition Vs. MST. Katiji & Ors 167 ITR 471 (SC). The appeal is admittedly for hearing. 3. The only effective ground in this appeal is against rejection of application filed by the assessee in form no. 10AB seeking registration u/s 12AB of the Act. 4. We have heard the Ld. AR and carefully considered the same along with the order of Ld. CIT (Exemptions). The assessee filed an application for registration u/s 12AB on 07.01.2022 with Ld. CIT (Exemptions), Bhopal. We noted from the order of Ld. CIT (Exemptions) that the hearing by the Ld. CIT (Exemptions) was fixed i.e. 08.06.2023, 13.07.2023 & 01.08.2023 on which dates, nobody attended on behalf of assessee and the Ld. CIT (Exemptions) rejected the application of the assessee seeking registration u/s 12AB of the Act. Learned CIT (Exemptions) has himself mentioned in his order that the letter issued by his office calling for specific queries regarding the application of the assessee for registration u/s 12AB of the Act but the assessee has not filed any relevant documents/submissions/evidences by the assessee. The Ld. CIT (Exemptions) passed the order without issuing any further notice or without trying to serve the query letter through notice server or by other means available, which is against the principles of natural justice. Under these facts, it is clear that the assessee was not afforded adequate opportunity of being heard. We, therefore, set aside the order of Ld. CIT (Exemptions) and restore the matter back to his file with the direction that Ld. CIT(E) shall provide sufficient opportunity of ITA No.127/JAB/2024 Page 4 of 4 being heard to the assessee and thereafter decide the issue of registration of the assessee society u/s 12AB of the Act. The assessee is also directed to be present on the date fixed for hearing by Ld. CIT (Exemptions). And would not seek any adjournment. The assessee is further directed to furnish the information as sought for during the course of the proceedings. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 07/01/2025. Sd/- Sd/- [NIKHIL CHOUDHARY] [KUL BHARAT] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 07/01/2025 Vijay Pal Singh, (Sr. PS) Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT (Judicial) 4. The PCIT 5. DR, ITAT, Jabalpur 6. Guard File By order // True Copy// Assistant Registrar ITAT, Jabalpur "