M/s. Seyyidmadani Charitable Trust, Mangaluru V. The Commissioner of Income Tax (Exemptions), Bangalore

ITA 1050/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9470 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 14-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEERA MALHOTRA CIT BENGALURU
• Assessee Lawyers: SHEETHAL
• Keywords: Charitable institution; Opportunity of being heard; Set aside
• Section: 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI B. R. BASKARAN , ACCOUNTANT MEMBER ITA NO S . 1050 AND 1051 /BANG/20 19 ASSESSMENT YEAR S : 2011 - 12 AND 20 19 - 2 0 M/S. SEYYIDMADANI CHARITABLE TRUST, ULLAL, MANGALURU. VS. THE COMMISSIONER OF INCOME-TAX, 6 TH FLOOR, UNITY BUILDING ANNEXURE, P. KALINGA RAO ROAD, BENGALURU 560 027 . APPELLANT RESPONDENT ASSESSEE BY : SMT. SHEETHAL, ADVOCATE REVENUE BY : MS. NEERA MALHOTRA, CIT - DR(ITAT), BENGALURU DATE OF HEARING : 2 5 . 0 9 .201 9 DATE OF PRONOUNCEMENT : 27 . 0 9 .201 9 O R D E R PER N. V. VASUDEVAN, VICE PRESIDENT: ITA NO.1050/BANG/2019 IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 12.03.2019 OF CIT(EXEMPTIONS), BANGALORE PASSED U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 (ACT) REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT. THE APPLICATION FOR GRANT OF REGISTRATION WAS MADE BY THE ASSESSEE IN FORM-10A ON 08.09.2018. 2. ITA NO.1051/BANG/2019 IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 12.03.2019 OF CIT(EXEMPTION), BANGALORE REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT. THE APPLICATION FOR GRANT OF APPROVAL WAS FILED BY THE ASSESSEE ON 08.09.2018. ITA NOS.1050 AND 1051/BANG/2019 PAGE 2 OF 3 2. THE ASSESSEE IS A TRUST WHICH CAME INTO BEING VIDE DEED OF TRUST DATED 07.01.1981. IT HAS, AS ITS OBJECTS, PROVIDING EDUCATION. THE ASSESSEE APPLIED FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IN FORM-10A ON 12.03.2019. THE ASSESSEE ALSO APPLIED FOR GRANT OF APPROVAL U/S 80G(5)(VI) ON 12.03.2019. 3. IN THE IMPUGNED ORDER THE CIT(E) REJECTING APPLICATION FOR REGISTRATION U/S.12AA OF THE ACT, THE CIT(E) HAS OBSERVED THAT A NOTICE DATED 20.02.2019 WAS ISSUED TO THE ASSESSEE CALLING UPON THE ASSESSEE TO FILE CERTAIN DETAILS AND FIXING THE DATE OF COMPLIANCE AS 7.3.2019 OR ANY DAY CONVENIENT. ACCORDING TO THE CIT(E), THE ASSESSEE DID NOT RESPOND TO THE SAID LETTER AND THEREFORE THE CIT(E) CAME TO THE CONCLUSION THAT THE ASSESSEE WAS NOT INTERESTED IN PROSECUTING THE APPLICATION FOR GRANT OF REGISTRATION AND HE THEREFORE HELD THAT HE WAS NOT IN A POSITION TO VERIFY THE OBJECTS OF THE TRUST AND GENUINENESS OF ITS ACTIVITIES AND THEREFORE THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT WAS BEING REJECTED. FOR IDENTICAL REASON THE APPLICATION FOR GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT WAS ALSO REJECTED. 4. AGGRIEVED BY THE AFORESAID ORDERS OF CIT(E) THE ASSESSEE HAS FILED THE PRESENT APPEALS BEFORE THE TRIBUNAL. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. IT WAS STATED BY THE LD. COUNSEL FOR THE ASSESSEE BEFORE US THAT THE NOTICE DATED 20.2.2019 WAS NEVER RECEIVED BY THE ASSESSEE. PERUSAL OF THE IMPUGNED ORDERS SHOWS THAT THE NOTICE DATED 20.2.2019 WAS ISSUED AND THERE IS NO MENTION ABOUT ITS SERVICE. MOREOVER, THE TIME LIMIT FOR PASSING ORDER U/S.12AA WOULD EXPIRE ON 31.03.2019. IN THE CIRCUMSTANCES, TAKING NOTE OF THE STATEMENT OF THE LEARNED COUNSEL FOR THE ASSESSEE ACROSS THE BAR REGARDING NON RECEIPT OF NOTICE DATED 20.02.2019, WE ARE OF THE VIEW THAT THE ASSESSEE DID NOT HAVE A PROPER OPPORTUNITY OF BEING HEARD BEFORE THE CIT(E). WE THEREFORE SET ASIDE THE ORDERS OF CIT(E) AND RESTORE THE QUESTION OF GRANT OF REGISTRATION U/S.12AA OF THE ACT AS WELL AS THE APPLICATION FOR GRANT OF APPROVAL ITA NOS.1050 AND 1051/BANG/2019 PAGE 3 OF 3 U/S.80-G OF THE ACT, TO THE CIT(E) FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW, AFTER AFFORDING THE ASSESSEE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT, THE APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF SEPTEMBER, 2019. SD/ - SD/ - (B. R. BASKARAN) ACCOUNTANT MEMBER (N. V. VASUDEVAN) VICE PRESIDENT BANGALORE. DATED: 27 TH SEPTEMBER, 2019. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.