Dwarakamai Seva Trust, Hyderabad V. DIT (Exemptions), Hyderabad

ITA 1032/HYD/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5872 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-02-2010
• Assessment Year: misc
• Appeal Filed On: 05-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H PHANI RAJU
• Assessee Lawyers: V RAGAVAENDRA RAO
• Keywords: Charitable institution; Opportunity of being heard
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1032/HYD/09 : M/S DWARAKAMAI SEVA TRUST, BASHEERBAGH, HYDERABAD. (PAN: AAATD6909R) (APPELLANT) VS DIRECTOR OF INCOME-TAX (EXEMPTIONS) HYDERABAD. (RESPONDENT) APPELLANT BY : SRI V. RAGAVAENDRA RAO RESPONDENT BY : SRI H. PHANI RAJU O R D E R PER AKBER BASHA, ACCOUNTANT MEMBER THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST ORDER PASSED BY THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), HYDERABAD DATED 1-7-2009 2. GROUNDS RAISED BY THE ASSESSEE IN THIS APPEAL READ AS FO LLOWS:- I) THE ORDER PASSED BY THE DIT(E) IN F.NO.DIT(E)/80G/REN/79(2)/08-09 DATED 1-7-2009 IN T HE ASSESSEE'S CASE REJECTING THE RENEWAL OF APPROVAL U/S 80G OF THE INCOME-TAX ACT, 1961 FOR DEDUCTION IN RESPECT OF 2 CONTRIBUTIONS TO THE CHARITABLE TRUST, IS CONTRARY TO LAW , FACTS OF THE CASE AND DEVOID OF ANY MERIT. II) THE DIT (E) IS NOT JUSTIFIED IN HOLDING THAT THE ASSESSEE FAILED TO FURNISH THE INFORMATION CALLED FOR AND PRO DUCE THE BOOKS OF ACCOUNTS WHEN IN FACT THE AR OF THE ASSESSEE APPEARED ON 28-5-2009 AND PRODUCED ALL THE INFORMATI ON CALLED FOR THOUGH NO OPPORTUNITY WAS GIVEN TO HIM. III) THE DIRECTOR OF INCOME-TAX (E) OUGHT NOT TO HAV E REJECTED THE RENEWAL APPLICATION SUBMITTED BY THE ASSESSEE IN FORM NO.10G ON 4-2-2009 EVEN AFTER SUBMITTING ALL THE INFORMATION REQUIRED BY HIM BY ITS LETTER DATED 14-5 -2009, BY SIMPLY STATING THAT SINCE LIMITATION MATTER IS INVOLV ED, HE WAS CONSTRAINED TO PASS THE ORDER BY REJECTING THE CLAIM FILED VIDE APPLICATION IN FORM NO.10G ON 4-2-2009. IV) THE DIT(E) FAILED TO SEE THAT THE INFORMATION RE QUIRED BY HIM BY LETTER DATED 30-4-2009 FROM THE ASSESSEE WAS FURNISHED BY IT VIDE LETTER DATED 14-5-2009 AND HE O UGHT TO HAVE GRANTED RENEWAL OF APPROVAL U/S 80G OF THE ACT IN THE INTERESTS OF JUSTICE BY GIVING AN ADEQUATE OPPORTUNITY TO THE ASSESSEE.' 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CHAR ITABLE TRUST FORMED FOR THE PURPOSE OF VARIOUS CHARITABLE ACTIVITIES AND IT WAS RUNNING AN OLD AGE HOME IN PURSUIT OF ITS OBJECTIVES AND THE ASSE SSEE CHARITABLE TRUST WAS REGISTERED U/S 12A OF THE ACT AND WAS INITIALL Y GRANTED APPROVAL U/S 80G OF THE ACT FOR RECEIVING VOLUNTARY CON TRIBUTIONS. THIS APPROVAL WAS FOR A PERIOD OF THREE YEARS WITH EFFECT F ROM 1-4-2006 TO 31-3-2009 AND THEREFORE THE ASSESSEE FILED AN APPLICAT ION IN FORM 3 NO.10G ON 4-2-2009 FOR RENEWAL OF APPROVAL U/S 80G(V I) OF THE ACT. THE DIT (E) BY HIS LETTER DATED 30-4-2009 REQUIRED THE ASSESSEE TO SUBMIT VARIOUS INFORMATION FOR CONSIDERING THE APPLICATI ON OF RENEWAL OF APPROVAL U/S 80G SOUGHT BY THE ASSESSEE AND POSTED THE CASE FOR HEARING ON 14-5-2009. THE AR OF THE ASSESSEE APPEARED ON 14-5-2009 AND SUBMITTED ALL THE INFORMATION REQUIRED BY THE DI T (E). HOWEVER, THE DIT (E) POSTED THE CASE FOR HEARING ON 26-5-2009 REQUI RING THE COUNSEL FOR THE ASSESSEE TO FURNISH BOOKS OF ACCOUNTS AND VOUCHERS AND THE LEARNED COUNSEL FOR THE ASSESSEE COULD NOT APPEAR ON 26-5- 2009 AND SOUGHT FOR AN ADJOURNMENT AND THE CASE WAS ADJOURNED O N 28-5-2009. ON 28-5-2009, THE COUNSEL FOR THE ASSESSEE APPEARED WITH ALL THE INFORMATION REQUIRED BY THE DIT (E) AND THE DIT (E) THOUGH ADMITTED THAT THE COUNSEL APPEARED ON 28-5-2009 BUT OBSERVED TH AT HE COULD NOT PRODUCE THE NAMES AND ADDRESSES OF THE DONORS, THE RECEIP T BOOK OF DONATIONS, VOUCHERS AND ALSO THAT HE COULD NOT PRODUCE THE ADDRESSES OF THE BENEFICIARIES AND THE ORIGINAL TRUST DEED. IT W AS CONTENDED THAT THE COUNSEL FOR THE ASSESSEE WAS READY WITH ALL THE INFORMATI ON BUT HE WAS NOT GIVEN ANY OPPORTUNITY TO PRODUCE THE REQUIRED IN FORMATION BY THE DIT (E) AND THE APPLICATION WAS REJECTED. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF THE RIVAL PARTI ES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AFTER CONSID ERING THE FACTS OF THE CASE, WE FIND THAT THE ASSESSEE WAS NOT GIVEN PROPER O PPORTUNITY TO PRODUCE THE REQUIRED INFORMATION BEFORE THE DIT (E) AND THE ASSESSEE IS ABLE TO PRODUCE THE NAMES AND ADDRESSES OF THE DONORS, TH E RECEIPT BOOK OF DONATIONS, VOUCHERS AND ALSO THE ASSESSEE IS READY T O PRODUCE THE ADDRESSES OF THE BENEFICIARIES AND THE ORIGINAL TRUS T DEED AND ALL THE REQUIRED INFORMATION BY THE DIT (E). IN VIEW OF ABO VE, WE DEEM IT FIT 4 AND PROPER TO SET ASIDE THIS MATTER TO THE FILE OF THE DIRECTOR OF INCOME- TAX (EXEMPTIONS) FOR FRESH ADJUDICATION IN ACCORDANCE WI TH LAW AFTER AFFORDING AN ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE SAME AFTER HEARING ALL THE CONTENTIONS OF T HE ASSESSEE IN THIS REGARD. 4. IN THE RESULT, THE APPEAL BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE COURT ON 26-3-2010 SD/- (N.R.S. GANESAN) SD/- (AKBER BASHA) JUDICIAL MEMBER ACCOUNTANT MEMBER. DT/- 26TH MARCH, 2010. COPY FORWARDED TO: 1. DWARAKAMAI SEVA TRUST, VENKATRAMA TOWERS, HYDERABAD . 2. DIT(E), HYDERABAD. 3. DR, ITAT, HYDERABAD. JMR*