SHRI PARSWACHANDRA GACHHA JAIN TRUST PALITANA,BHAVNAGAR V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1697/AHD/2024

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The case involves Shri Parswachandra Gachha Jain Trust, which appealed against the decision of the Commissioner of Income Tax (Exemptions), Ahmedabad, rejecting their application for registration under section 12AB of the Income Tax Act, 1961, and cancelling the provisional registration previously granted. The Tribunal noted a significant delay in filing the appeal, which was attributed to the assessee's lack of awareness of the rejection order and technical issues faced while accessing the Income Tax portal. The Tribunal emphasized the need for adherence to the principles of natural justice and remanded the case back to the CIT(E) for a fresh decision after providing a reasonable opportunity of being heard to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47092 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILENDRA PRATAP YADAW
• Assessee Lawyers: MEHUL K PATEL
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Reasonable cause; Principle of natural justice

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद Ɋायपीठ “ए“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD सुŵी सुिचũा काɾले, Ɋाियक सद˟ एवं ŵी मकरंद वसंत महादेवकर, लेखा सद˟ क े समƗ। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No. 1697/Ahd/2024 िनधाŊरण वषŊ /Assessment Year : NA Shri Parswachandra Gachha Jain Trust, Palitana Anand Sagar Society, Taleti Road, Palitana, Bhavnagar – 364270 (Gujarat) बनाम/ v/s. The Commissioner of Income Tax (Exemption) Ahmedabad ̾थायी लेखा सं./PAN: AAGTS1502B अपीलाथŎ/ (Appellant) Ů̝ यथŎ/ (Respondent) Assessee by : Shri Mehul K Patel, AR Revenue by : Shri Akhilendra Pratap Yadaw, CIT-DR सुनवाई की तारीख/Date of Hearing : 08/04/2025 घोषणा की तारीख /Date of Pronouncement: 09/04/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: This appeal by the assessee is directed against the order dated 18.09.2023 passed by the Commissioner of Income Tax (Exemptions), Ahmedabad [hereinafter referred to as \"CIT(E)\"], rejecting the assessee’s application for registration under section 12AB of the Income Tax Act, 1961[hereinafter referred to as \"the Act\"] and also cancelling the provisional registration granted earlier under section 12A(1)(ac)(vi) of the Act. ITA No.1697/Ahd/2024 Shri Parswachandra Gachha Jain Trust, Palitana vs. CIT(E) 2 Condonation of Delay 2. At the outset, it is noted that there is a delay of 313 days in filing the present appeal before us. In this regard, the assessee has filed a petition seeking condonation of delay supported by a duly sworn affidavit of Shri Girish Mulji Vora, trustee of the assessee trust. It has been stated therein that the assessee became aware of the rejection order only in April 2024 upon accessing the Income Tax Portal, as neither the impugned order nor the notices issued under section 12AB were received earlier. The affidavit further states that the assessee attempted to file a fresh application within the extended deadline of 30.06.2024 as per CBDT circular but could not do so due to technical issues on the portal. A grievance petition dated 14.06.2024 has also been placed on record. 3. The learned Departmental Representative (DR) raised no serious objection to the condonation of delay. 4. Considering the submissions and the circumstances set out in the affidavit, we are satisfied that the delay in filing the appeal was due to bonafide and unavoidable circumstances. Accordingly, in the interest of justice, the delay of 313 days is hereby condoned. Facts of the Case 5. The assessee is a trust which was granted provisional registration under section 12A(1)(ac)(vi) of the Act vide Form 10AC dated 27.05.2021 for A.Ys. 2021-22 to 2023-24. The assessee filed an application in Form 10AB on 25.03.2023 seeking regular registration under section 12A(1)(ac)(iii). The CIT(E) issued notices dated 19.07.2023, 22.08.2023, and 12.09.2023 calling for details and documents. As there was no response from the assessee, the ITA No.1697/Ahd/2024 Shri Parswachandra Gachha Jain Trust, Palitana vs. CIT(E) 3 application was rejected, and the provisional registration was cancelled by an ex-parte order dated 18.09.2023. 6. Aggrieved by the order of CIT(E), the assessee is in appeal before us raising following grounds of appeal: “(1) That on facts, and in law, the learned CIT (Exemptions) Ahmedabad has grievously erred in not granting sufficient and reasonable opportunity to the appellant and in deciding the application u/s 12AB ex-parte. (2) That on facts, and in law, the learned CIT (Exemptions), Ahmedabad has grievously erred in rejecting the application for registration u/s. 12AB of the Act by ex-parte order. (4) The appellant craves leave to add, alter, amend any ground of appeal.” 7. During the hearing, the learned Authorised Representative (AR) submitted that the assessee had never received the notices issued by the CIT(Exemptions), nor was aware of the rejection order until April 2024. It was explained that the non-filing of responses was due to lack of communication and technical glitches on the portal. The AR also pointed out that a grievance was raised on the Income Tax portal on 14.06.2024, which remains unresolved. It was contended that the assessee was prevented by reasonable cause and that the matter be remanded for adjudication on merits. 8. The DR raised no objection is restoring the matter back to the file of CIT(E). 9. We have heard the rival submissions and perused the material available on record. Admittedly, the impugned order was passed ex-parte, and the assessee has asserted on oath that neither the order nor the show cause notices were received. The grievance submitted on the IT portal substantiates the assessee’s contention regarding technical issues in filing the required form or documents. Given these facts, we are of the view that the principles of natural justice have not been complied with in the present case. ITA No.1697/Ahd/2024 Shri Parswachandra Gachha Jain Trust, Palitana vs. CIT(E) 4 10. In view of the foregoing, we are inclined to set aside the impugned ex- parte order passed by the CIT(Exemptions) dated 18.09.2023 and restore the matter back to his file for a fresh decision in accordance with law, after giving the assessee a reasonable opportunity of being heard. 11. Accordingly, the impugned order passed under section 12AB of the Act is set aside. The matter is restored to the file of the CIT(E) for fresh adjudication after providing adequate opportunity to the assessee. 12. In the result, the appeal is accordingly allowed for statistical purposes. Order pronounced in the Open Court on 9th April, 2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 09/04/2025 S. K. Sinha, Sr. PS True Copy आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ ) अपील ( / The CIT(A)/Pr.CIT-1, Vadodara 5. िवभागीय Ůितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, सȑािपत Ůित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad "