Case Law Details
Shree Radheshyam Sharnam Vs CIT (Exemption) (ITAT Jaipur)
Introduction: The case of Shree Radheshyam Sharnam vs CIT (Exemptions) at ITAT Jaipur involves an appeal against the order dated 17.09.2020, related to the approval under section 80G(5)(vi) of the Income Tax Act, 1961. The article discusses the challenges faced by the assessee society during the Covid-19 pandemic, leading to delayed document submission and subsequent appeals.
Detailed Analysis: The Full Text of the ITAT Jaipur order reveals that the assessee, a society providing services to the elderly, faced difficulties in submitting necessary documents due to the unprecedented circumstances of the Covid-19 pandemic. The appeals, ITA No. 95/JP/2021 and ITA No. 254/JP/2021, were delayed by 288 and 364 days, respectively. The ITAT considered the reasons for the delay, condoning it in the interest of natural justice.
The order highlights that the assessee applied for approval under section 80G(5)(vi) on 04.03.2020. The ld. CIT (Exemptions) requested specific documents, but the assessee, facing challenges during the pandemic, could not produce the required evidence. The society argued that, being engaged in critical services for the elderly, their resources were directed towards pandemic relief, leading to the inability to submit documents within the stipulated time.
Considering the exceptional circumstances, the ITAT decided to remand the matter back to the ld. CIT (Exemptions) for a fresh decision, allowing the assessee a reasonable opportunity to submit the required documents.
Conclusion: In conclusion, the ITAT Jaipur, recognizing the impact of the Covid-19 pandemic on the society’s ability to comply with document submission deadlines, decided in favor of justice. The delay in filing the appeals was condoned, and the matter was remanded to the ld. CIT (Exemptions) for a fresh decision. This case emphasizes the importance of considering extraordinary circumstances and providing reasonable opportunities in tax-related matters affected by unforeseen events.
Keeping in view the circumstances faced by the assessee society during the Covid-19 pandemic which prevented the assessee society to submit the necessary documents before the ld. CIT (Exemptions) for approval under section 80G(5)(vi) of the Act, we are of the considered view that it will appropriate and in the interest of justice to remand the matter back to the file of the ld. CIT (Exemptions) to decide the matter afresh after affording a reasonable opportunity to the assessee society to submit documents as desired by him.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
These are two appeals filed by the assessee against the order of ld. CIT (Exemptions), Jaipur dated 17.09.2020 passed under section 80G(5)(vi) of the I.T. Act 1961. The common grounds raised by the assessee are reproduced below :-
“1. At the time of hearing, the society was facing the difficulties of Corona Pandemic, therefore the society was unable to submit all documents within time limit.
2. This society is providing service to elderly, so the situation was very critical in this pandemic period for the society management.
3. At the time of hearing, the society was engaged in bearing the responsibility to cure the save to the aged members of the society by the corona pandemic.”
2. The appeal in ITA No. 95/JP/2021 filed by the assessee is delayed by 288 days and the second appeal filed in ITA No. 254/JP/2021 is delayed by 364 days. From the record, it is also noticed that the assessee has wrongly filed the second appeal i.e. ITA No. 254/JP/2021 as the grounds taken are common and also against the same order of ld. CIT (Exemptions). Therefore, we take up appeal in ITA No. 95/JP/2021 as the same was filed first.
ITA No. 95/JP/2021.
3. There is a delay of 288 days in filing the appeal in ITA No. 95/JP/2021. The assessee vide his letter dated 18.04.2022 has requested to condone the delay in filing the appeal. The assessee has explained that due to Pandemic Covid-19 the assessee was prevented from filing the appeal within the stipulated period, therefore, he requested to condone the delay of 288 days.
4. Taking into consideration the reasons stated by the assessee due to pandemic of Covid-19 and in the interest of natural justice, we condone the delay of 288 days in filing the appeal and decide the appeal of the assessee on merits.
5. As to the facts of the present case, we noticed from the order of the ld. CIT (Exemptions) that the assessee applicant has filed an application in Form No. 10G dated 04.03.2020 for seeking approval under section 80G(5)(vi) of the I.T. Act, 1961. The assessee vide letter dated 30.07.2020 was asked to produce certain documents and original certificate under section 12AA/10(23C) by 17.08.2020. However, the assessee could not produce any documentary evidence in support of the charitable activities carried out by the assessee trust. Therefore, the ld. CIT (Exemptions) after providing sufficient opportunities to the assessee applicant dismissed the application filed by the assessee in form no. 10G seeking approval under section 80G(5)(vi) of the Act. The ld. A/R appearing on behalf of the assessee applicant submitted that the society/trust was facing the difficulties due to Covid-19 pandemic at the time of hearing before the ld. CIT (Exemptions), therefore, it was unable to submit all the necessary documents before the ld. CIT (Exemptions) within the time limit. It was also submitted that since the applicant society is providing service to elderly persons, therefore, the situation was very critical during the Pandemic period and all the workers of the applicant society were engaged in providing services during the critical pandemic period and thus were unable to submit the required documents.
6. We have heard both the parties and perused the material available on record. Keeping in view the circumstances faced by the assessee society during the Covid-19 pandemic which prevented the assessee society to submit the necessary documents before the ld. CIT (Exemptions) for approval under section 80G(5)(vi) of the Act, we are of the considered view that it will appropriate and in the interest of justice to remand the matter back to the file of the ld. CIT (Exemptions) to decide the matter afresh after affording a reasonable opportunity to the assessee society to submit documents as desired by him.
7. Since we have already restored the matter in ITA No. 95/JP/2021 to the file of the ld. CIT (Exemptions) to decide afresh, therefore, the subsequent appeal in ITA No. 254/JP/2021 filed against the same order automatically stands infructuous and the same is dismissed.
8. In the result, appeal in ITA No. 95/JP/2021 is allowed for statistical purposes and appeal in ITA No. 254/JP/2021 is dismissed.
Order pronounced in the open court on 14/06/2022.
