SHREE ADVAIT SWARUP ANANT ASHRAM NAYAS,KURUKSHETRA V. CIT EXEMPTION, CHANDIGARH

ITA 174/CHANDI/2025

AI Insights

The case involves Shree Advait Swarup Anant Ashram Nayas, the appellant, who sought registration under section 12AB of the Income Tax Act, 1961. The application was initially rejected by the CIT (Exemptions) due to the appellant's failure to respond to multiple notices seeking clarifications and documentary evidence. The appellant, represented by a new Chartered Accountant due to the personal tragedy of the previous representative, argued that the non-responses were due to these unforeseen circumstances. The Tribunal acknowledged the genuine hardship and the need for a fair opportunity to present the case, leading to the remand of the matter for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706858 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 03-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT KUMAR KUREEL
• Assessee Lawyers: KUSHAL CHOPRA
• Keywords: Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 173 & 174 /Chd/ 2025 िनधाŊरण वषŊ / Assessment Year : 2025-26 Shree Advait Swarup Anant Ashram Nayas, Rajinder Nagar, Anant Marg, Kurukshetra, Haryana- 136118 बनाम The CIT Exemption Chandigarh ˕ायी लेखा सं./PAN NO: AACTS7086G अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Kushal Chopra, CA for Shri Sudhir Sehgal, Advocate राजˢ की ओर से/ Revenue by : Shri Rajat Kumar Kureel, CIT, DR सुनवाई की तारीख/Date of Hearing : 03/07/2025 उदघोषणा की तारीख/Date of Pronouncement : 07/07/2025 आदेश/Order PER LALIET KUMAR, J.M: Both the above appeals have been filed by the assessee against the separate orders each dated 28.11.2024 passed by the Ld. CIT (Exemptions), Chandigarh whereby the application of the assessee seeking registration under section 12A(1)(ac)(iii) of the Income Tax Act, 1961 was rejected. 2. At the outset, the Registry has pointed out a delay of 03 days in filing the appeals. After considering the condonation application and finding sufficient cause demonstrated therein, we condone the delay and admit the appeals for adjudication. 3. Since the issues involved in both the above appeals are common and were heard together therefore they are being disposed of by this consolidated order. 4. We shall take appeal of the assessee in ITA No. 173/Chd/2025 as a lead case for discussion. 2 5. The assessee had filed an application in Form No. 10AB on 19.06.2024 seeking registration under section 12AB. During the proceedings before the CIT(E), multiple notices were issued on 07.10.2024, 07.11.2024, and 18.11.2024 seeking detailed clarifications and documentary evidences to verify the genuineness of the activities and compliance with the objects of the trust. 6. The Ld. CIT(E) noted that the assessee failed to file the requisite responses to the notices issued and therefore concluded that the assessee was not interested in pursuing the application. Consequently, the application was rejected. 7. Against the order of the CIT(E), the assessee preferred an appeal before the Tribunal. 8. Before us, the learned AR submitted that the earlier Chartered Accountant representing the assessee was under extreme personal distress due to the unfortunate demise of his young son during the pendency of the proceedings. This tragic circumstance, which was duly acknowledged by the Ld. CIT(E) herself in the records, had severely hampered the assessee's ability to respond within the stipulated timeline. 9. It was further submitted that despite the CIT(E) being made aware of this genuine hardship, the impugned order was passed without affording a reasonable and sufficient opportunity to either the assessee or the earlier authorised representative to furnish the required documents. The AR prayed for a remand of the matter for de novo consideration. 10. The learned DR supported the order of the CIT(E) and submitted that adequate opportunities had already been provided and that the rejection was in accordance with law. 11. We have carefully considered the rival submissions and perused the record. It is evident that the assessee was unable to furnish the documents in time due to a genuine personal tragedy faced by the earlier AR, which was also noted by the CIT(E). In such circumstances, we are of the considered opinion that the assessee ought to have been granted a final and 3 reasonable opportunity to comply with the requisitions, especially keeping in view the beneficial nature of the registration under section 12AB and the principles of natural justice. 11.1 Accordingly, in the interest of justice, we set aside the impugned order dated 27.11.2024 and remand the matter back to the file of the Ld. CIT (Exemptions), Chandigarh, with a direction to examine the application afresh after affording a reasonable opportunity to the assessee to furnish the necessary documents and explanations. The assessee is also directed to cooperate with the proceedings and ensure timely compliance. 12. In the result, appeal of the assessee is allowed for statistical purposes. 13. Both the parties fairly submitted that the facts and circumstances of other appeal i.e ITA No. 174/ Chd/2025 are exactly identical to the Appeal in ITA No. 173/Chd/2025 and similar contentions raised therein may be considered, therefore, our findings and directions given in ITA No. 173/Chd/2025 shall apply mutatis mutandis to this appeals also. 14. In the result, both the above appeals filed by the Assessee are allowed for statistical purposes. Order pronounced in the open Court on 07/07/2025 Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "