BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. ASTHA CHANDRA, JUDICIAL MEMBER
Appellant: Indian Society for Histocompatibility and Immunogenetics, 2008, Convergence Block, AIIMS, Ansari Nagar, New Delhi, PAN: AABAI3896E
Respondent: The C.I.T[E], New Delhi
Assessee By: None
Department By: Shri Rajesh Kumar, CIT-DR
Date of Hearing: 25.08.2022
Date of Pronouncement: 25.08.2022
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:
This appeal by the assessee is preferred against the order of the CIT(E), Delhi dated 25.03.2019, made under Section 12AA(1)(b) read with Section 12A of the Income-tax Act, 1961 [hereinafter referred to as ‘The Act’].
The solitary grievance of the assessee is that the ld. CIT(E) erred in rejecting the application for registration under Section 12AA of the Act.
None appeared on behalf of the assessee despite repetitive notices. Hence, we decided to proceed ex parte.
A perusal of the order of the ld. CIT(E) shows that a notice was issued at the address given in Form No. 10A, in response to which the assessee filed submissions. The ld. CIT(E) observed that the assessee failed to submit documentary evidence in support of charitable activities and subsequently rejected the application of the assessee.
In our considered opinion, the ld. CIT(E) ought to have given reasonable and adequate opportunity to the assessee to substantiate its claim for registration under Section 12A of the Act. Therefore, in the interest of justice and fair play, we restore this issue to the file of the ld. CIT(E). The ld. CIT(E) is directed to afford reasonable and adequate opportunity to the assessee society to file necessary documents in support of registration under Section 12AA of the Act, and the assessee is directed to avail this opportunity.
In the result, the appeal of the assessee in ITA No. 4752/DEL/2019 is allowed for statistical purposes. The order is pronounced in the open court on 25th August, 2022.
BY ORDER
Assistant Registrar, ITAT, New Delhi
The Indian Society for Histocompatibility and Immunogenetics filed an application for registration under Section 12AA of the Income-tax Act, 1961. The primary objective of the society is to promote and advance the science of histocompatibility and immunogenetics for the benefit of public health. The application was submitted with the intention to obtain tax exemption status for its charitable activities.
Upon review, the CIT(E) found that the society failed to provide sufficient documentary evidence to substantiate its claim of engaging in charitable activities. The notices sent to the address provided were responded to with submissions that did not satisfy the requirements for registration under Section 12AA. Consequently, the CIT(E) rejected the application, leading the society to file an appeal with the Income Tax Appellate Tribunal.
The appellant argued that the CIT(E) did not give adequate opportunity to present the necessary documents and evidence to support their application. They contended that their activities were indeed charitable and aimed at benefiting public health through scientific advancements. They requested the tribunal to restore the matter to the CIT(E) for a fair reassessment with proper opportunity to present their case.
The Department, represented by Shri Rajesh Kumar, CIT-DR, maintained that the CIT(E) had acted correctly based on the available evidence, or rather the lack thereof. The Department argued that the onus was on the appellant to provide clear and convincing proof of their charitable activities, which they failed to do despite multiple notices.
The Tribunal noted that while the appellant may have failed to provide sufficient documentation initially, the principles of natural justice necessitate that they be given another opportunity. The Tribunal emphasized the importance of allowing the appellant to substantiate their claims adequately, considering the significant benefits of registration under Section 12AA.
The Tribunal, therefore, decided to restore the issue to the file of the CIT(E) with directions to provide a reasonable and adequate opportunity for the appellant to present the necessary documents and evidence. The Tribunal also directed the appellant to avail this opportunity and ensure that all required documentation is submitted for a fair reassessment.
This decision highlights the Tribunal’s commitment to ensuring fair play and justice in tax matters, particularly concerning the registration of entities under Section 12AA of the Income-tax Act. The order underscores the need for tax authorities to provide ample opportunity for applicants to present their case, especially when it involves charitable organizations whose work benefits public welfare.
The restoration of the case to the CIT(E) for reassessment is a crucial step that allows the Indian Society for Histocompatibility and Immunogenetics to potentially secure the tax exemption status necessary for their operations. It also sets a precedent for similar cases, reinforcing the importance of procedural fairness in tax adjudication processes.
The appeal filed by the Indian Society for Histocompatibility and Immunogenetics against the order of the CIT(E), rejecting their application for registration under Section 12AA of the Income-tax Act, 1961, is a significant case that underscores the importance of procedural fairness and justice in the adjudication of tax matters. The Tribunal’s decision to restore the issue to the file of the CIT(E) for reassessment provides the appellant with a valuable opportunity to substantiate their claims and potentially secure the tax exemption status necessary for their charitable operations. This case sets a precedent for similar appeals and highlights the Tribunal’s commitment to ensuring fair play and justice in tax matters.
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