SHREE GROW MORE EDUCATION CHARITABLE TRUST,JAMNAGAR V. THE COMMISSIONER OF INCOME TAX, EXEMPTION, AHMEDABAD

ITA 497/RJT/2024

AI Insights

The case involves Shree Grow More Education Charitable Trust appealing against the order of the CIT(Exemption), which denied the trust's registration under section 12AB of the Income Tax Act, 1961. The trust argued that the CIT(Exemption) erred in holding that its activities were not genuine and not in accordance with the trust's objects. The trust also contended that the order was passed ex-parte without proper opportunity to be heard, and that the CIT(Exemption) did not consider the evidence provided with the application. The tribunal found that the CIT(Exemption) had not adequately considered the trust's submissions and evidence, and that the order was passed without proper notice to the trust, thus violating principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 27284 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-10-2024
• Assessment Year: misc
• Appeal Filed On: 20-07-2024
• Other Referred Cases: CIT Ujjain vs. Dawoodi Bohara Jamat civil appeal No.2492 of 2014
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: SANDEEP BHUVA; PHYSICAL MODE
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Charitable institution
• Section: 147

Judgement Text

" Page | 1 ITA No.497/RJT/2024 Shree Grow More Education Charitable Trust CIN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.497/RJT/2024 (Ǔनधा[रण वष[ / Assessment Year: (2021-22 to 2023-24) (Physical Hearing) Shree Gro More Education Charitable Trust Main Bazar, Varvala Tal. Dwarka, Dist. Jamnagar Vs. CIT (Exemption) Ahmedabad èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAOTS0103N (Assessee) (Respondent) Assessee by : Shri Sandeep Bhuva, AR Respondent by : Shri Abhimanyu Singh Yadav, Sr.- DR Date of Hearing : 21/10/2024 Date of Pronouncement : 18/11/2024 आदेश / O R D E R PER DINESH MOHAN SINHA, AM: The appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad [in short ‘Ld. CIT(A)’], dated 12.10.2023, u/s 12AB of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. The assessee has raised following grounds of appeal: “1.Ground No.1 Whether on the facts and circumstances of the case and in Law the CIT(EX) has earned in holding that the assessee trust's activities are not genuine. Ground No.2 Whether on the facts and circumstances on the case and in Law the Ld CIT(EX) has eared in holding that the assessee trust activities are not as per the objects of constitution of the trust. Page | 2 ITA No.497/RJT/2024 Shree Grow More Education Charitable Trust 3.Ground No.3 As order passed by LD CIT(EX) on ex party basis no proper opportunely in provided to the assessee & hence order passed by the LD CIT is require to be set a site under this appeal. 4.Ground No.4 As application U/s 10AB was file with necessary evidence as per rule but LD CIT not consider the evidence file with application form & totally relied on the judgment of hon'ble supreme court in the case CIT Ujjain v/s Dawoodi Bohara Jamat civil appeal No.2492 of 2014 but which judgment given against the department & hence order passed by LD CIT is require to be set a site under. 5.Ground No.5 The assesse may at any time before final arguments of appeal, after, amend or delete the ground of appeal. 6. Statement of Fact :-(1) As the assessee is public trust registered under the Bombay public trust Act. 1950, as on dt.15/03/2010 & Register Number is E/3246/Jamnagar there after the devbhumi dwarka district is divide from the Jamnagar district and hence new number is allotted to this trust E/911/devbhumidwarka & hence this trust is a public trust. (2) According to the provision of Income tax Act. this trust is apply for Provisional registration before the Income tax authority and Income tax authority CIT(EX) provisionally registered to this trust as with serial number No.AAOTS0103NE20206 From A.Y.2021-2022 ΤΟ 2023-2024 there after as on dt.26/04/2023 Form No.10AB [See Rule 17A/11AA/2C is filed before the CIT(EX) for registering the trust u/s.12AB of the income tax Act.1961 with the necessary evidence as per the prescribe rules. (3) First saw cause notice is issued to the assessee as on dt. 12/08/2023 but for the preparation & reply first adjournment is taken by the assessee trust the 7 Prayer :- Allow the appeal & set a side the order passed by the CIT(Ex) Ahmedabad & remand the mater to him” 3. At the outset, the appeal is delayed by … days. Ld. AR has filed an application for condonation of delay. The relevant part of the condonation of delay are reproduced as follows: “1. As order passed by CIT(Ex) as on 12/10/2023 is not served to the assessee on physical mode no any mail about this order is reach to the assessee & hence he is not aware till dt. 15/06/2024 about the order passed v/s 12AB by the respondent CIT(Ex) & hence from the date of knowledge this appeal is filed in due time. 2. As entire order u/s 12AB is passed without giving assessee trust proper opportunely & on ex party basis & hence that types of order contrivance the provision of natural Justice & hence opportunely for being heard to be given to the assessee trust delay will be condone in the interest of Justice & in the interest of this public trust. 3. The principal establish by the higher court that for the Justice technical ground for delay is void and matter to be heard on merits basis and hence delay is condone for Justice to the assessee trust.” Page | 3 ITA No.497/RJT/2024 Shree Grow More Education Charitable Trust 4. Ld. AR submitted that the appellant is a trust and applied for registration u/s 12AB(1)(b) and filed Fron 10AB with the relevant document with application form there after notice in mail id of assessee is issued by the CIT(Exemption) Ahmedabad as on 12.08.2023 is short period. Appellant filed adjustment against his notice then second notice as on d.10.10.2023 is issued to the assessee on mail and hearing was fixed on 31.10.2023 but this second notice is not aware or in knowledge with the assessee. Further no any notice is served to the appellant on physical mode or no order is served by physical mode therefore, the appellant is not aware about the order passed by the CIT(E) as on 12.10.2023. Hence, there is a delay occurred in filing the appeal. 5. On the contrary Ld. DR has submitted that due to such careless attitude and negligence on the part of the consultant nobody attended the appellate proceedings and Ld. ITO also passed ex-parte order u/s 144/ 147 of the Act. 6. We have heard both the parties and we note that it is because of the mistake of the tax consultant the appeal was not pursued before the Ld. CIT(A). The assessee should not be suffer because of mistake committed by the Ld. counsel. We find that there is a sufficient cause to condone the delay, therefore, we condoned the delay and admitted the appeal of the assessee for hearing. 7. Brief facts of the case are that the assessee is public trust registered under the Bombay public trust Act 1950 as on dt. 15.03.2010. The appellant filed an application for form 10AB fore the CIT(E) for registering the trust u/s12AB of the Act with necessary evidence as per the prescribed Rules. The show cause notice was issued on 12.08.2023 but adjournment was take by the appellant trust thereafter second notice was issued on 06.10.2023 by Page | 4 ITA No.497/RJT/2024 Shree Grow More Education Charitable Trust the department but the appellant was aware about the notice hence no reply was done by the appellant trust. Therefore, the registration u/s 12AB was rejected on 12.10.2023 and this order is not served to the assessee by physical mode. 8. The assessee is in appeal before us against the order passed by the Ld. CIT(Exemption) 9. Ld. AR has submitted that the show cause notice was issued on 12.08.2023 but adjournment was taken by the appellant trust thereafter second notice was issued on 06.10.2023 by the department but the appellant was aware about the notice hence no reply was done by the appellant trust. Ld. counsel further submitted that Ld. CIT(E) has not considered the eiveence filed with application form and relied on the judgment of Hon’ble Supreme Court in the case of CIT -Ujjain vs. Dawoodi Bohara Jamat Civil Appeal No.2492 of 2014. The Ld. counsel prayed for one more opportunity to present the case before the authorities. 10. On the contrary the Ld. DR has relied upon the order of Ld. CIT(Exemption). 11. We have heard both the parties and perused all the material available on record. We note that the ld. CIT(A) has noted that notice issued to the assessee for hearing of the case but the order is silent on the service of notice upon the assessee. We further note that the impugned order of the Ld. CIT(A) is a non-speaking order. We do not wish to make any comment on the merits of the grounds raised by the assessee. We further note that the CIT(A) has not decided the issue in respect of the grounds raised by the assessee in memo of appeal as per the mandate of the provision of section Page | 5 ITA No.497/RJT/2024 Shree Grow More Education Charitable Trust 250(6) of the Act. We are of the view that one opportunity should be given to the assessee to present his case before the Ld.AO. A cost of Rs.5,000/- is imposed on the assessee for non-compliance attitude which is to be deposited with Prime Minister Relief Fund. We note that it is settled law that principle of natural justice and fair play required that effected party should be granted sufficient opportunity of being heard to context this case. Therefore, we deem it fit and proper to set aside the order of the CIT(A) and remit the mater back to the file of Ld. AO to adjudicate the issue afresh on merits after giving reasonable opportunity of being heard to the appellant. The AO shall allow one more opportunity of being heard to the assessee. The assessee is also directed to furnish all the evidence before the AO as when ask for. 12. In the result, the appeal of the assessee is Allowed for statistical purposes. Order is pronounced in the open court on 18 /11/2024 Sd/- Sd/- (Dr. A.L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER Rajkot True Copy Ǒदनांक/ Date: 18 /11/2024 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "