This article provides a comprehensive analysis of the tribunal proceedings in ITA No. 1115/DEL/2019, involving Imaging Today from Delhi and the Commissioner of Income Tax (Exemption), New Delhi. The case addresses the rejection of registration under section 12A and approval under section 80G of the Income Tax Act, 1961.
The appellant, Imaging Today, filed an application online on 22nd May 2018 seeking registration under section 12AA and exemption under section 80G of the Income Tax Act, 1961. The application was considered by the Commissioner of Income Tax (Exemption) (hereinafter referred to as the ‘Commissioner’). Various opportunities were given to the appellant to furnish the necessary documents to support its claim, but the appellant failed to comply within the stipulated time.
The case was heard by the ITAT Delhi Bench ‘C’ on 13th July 2022, with the order pronounced on the same day. The bench consisted of Shri N.K. Billaiya, Accountant Member, and Shri N.K. Choudhry, Judicial Member.
The appellant, represented by Shri Sushil Chadha, CA, challenged the order of the Commissioner, who declined the registration and approval under sections 12A and 80G of the Income Tax Act. The main contention was that the appellant was not given a fair opportunity to present its case and that the submissions and documents provided were not duly considered.
During the hearing, the appellant’s representative argued that although the appellant had filed the necessary documents and evidence, the Commissioner only considered a part of the submissions and ignored significant evidence provided later. The respondent, represented by Shri Anuj Garg, Sr. DR, defended the order of the Commissioner, arguing that sufficient opportunities were given to the appellant.
‘We have given our thoughtful consideration to the rival submissions and the material available on record. At the outset, we observe that the Assessee had filed two submissions on 22.11.2018 and 27.11.2018, whereas the impugned order was passed on dated 28.11.2018, but the said submissions remained un-considered.’
The tribunal noted that the submissions made by the appellant on 22nd and 27th November 2018 were not considered by the Commissioner, which necessitated a re-examination of the case.
The tribunal concluded that the appeal filed by the appellant should be allowed for statistical purposes. The decision was pronounced in the open court on 13th July 2022, directing the Commissioner to reconsider the case after taking into account all the submissions and evidence provided by the appellant.
The tribunal’s final judgment stated:
‘In the result, the appeal filed by the Assessee is allowed for statistical purposes. The decision was pronounced in the open court on 13/07/2022.’
This judgment highlights the tribunal’s commitment to ensuring procedural fairness and the principles of natural justice in tax litigation.
This case serves as a precedent for similar disputes, emphasizing the importance of adhering to procedural guidelines and ensuring fair hearings in tax appeals. It underscores the role of the ITAT in safeguarding the rights of taxpayers and ensuring that appeals are decided on their merits.
The following sections provide a detailed account of the tribunal’s deliberations and the legal arguments presented by both sides during the hearing of ITA No. 1115/DEL/2019.
Imaging Today is an organization based in Delhi that filed an application for registration under section 12AA and exemption under section 80G of the Income Tax Act, 1961. The appellant’s application was initially rejected by the Commissioner due to insufficient evidence and non-compliance with procedural requirements.
The Commissioner noted that the appellant failed to provide substantial evidence to support the charitable nature of its activities. The major expenses were noted to be towards FICCI bookings, hotel bookings, and travel expenses, without sufficient documentation to substantiate these claims.
‘The ld. Commissioner in the impugned order concluded that genuineness of charitable activities could not be established and declined to grant registration u/s. 12A and approval u/s. 80G of the Act accordingly.’
The tribunal emphasized the importance of considering all submitted documents and ensuring that the appellant is given a fair opportunity to present its case.
The tribunal’s decision in ITA No. 1115/DEL/2019 underscores the importance of procedural fairness in tax litigation. By restoring the case to the Commissioner and directing a fair hearing, the tribunal reinforced the principles of natural justice and ensured that the appeal would be decided on its merits.
This case serves as an important reference point for future tax litigation, highlighting the need for proper notice and fair hearings in tax appeals. It also underscores the role of the ITAT in ensuring that tax disputes are resolved efficiently and justly.
Order pronounced in open court on this 13th day of July, 2022.
Per N.K. Billaiya, Accountant Member, and N.K. Choudhry, Judicial Member.
Tax Appeal: Imaging Today vs. CIT(Exemption), New Delhi – ITA No. 1115/DEL/2019
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