M.N. Sharma Architectural Society, Chandigarh V. CIT(E), Chandigarh

ITA 1055/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7690 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 08-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S PHANI KISHORE
• Keywords: Gift; Opportunity of being heard
• Section: 12A; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B CHANDIGARH !, ' # $ , $ % & ' ( ) , *+ # BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 1055/CHD/2018 ASSESSMENT YEAR : 2018-19 M/S M.N.SHARMA ARCHITECTURAL SOCIETY, H.NO. 1630, 2 ND FLOOR, SECTOR 44-B, CHANDIGARH. VS THE CIT (EXEMPTIONS), CHANDIGARH. PAN /TAN NO: AAEAM2485N APPELLANT RESPONDENT ! ASSESSEE BY : SHRI HARRY RIKHY ' ! REVENUE BY : SHRI G.S.PHANI KISHORE, CIT-DR # $ % DATE OF HEARING : 16.07.2019 &'() % D ATE OF PRONOUNCEMENT : 23.07.2019 *./ ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSAILING THE CORRECTNESS OF THE ORDER DATED 27.06. 2018 OF CIT (EXEMPTIONS) CHANDIGARH PASSED U/S 12AA(1)(B)(I I) OF THE INCOME TAX ACT,1961 ON THE FOLLOWING GROUNDS : 1. THAT THE ORDER OF THE LEARNED COMMISSIONER O F INCOME TAX (EXEMPTIONS) CHANDIGARH IS DEFECTIVE BOTH IN LAW AND FACTS OF TH E CASE. 2. THAT THE ORDER PASSED BY THE LEARNED COMMISSIONER O F INCOME TAX (EXEMPTIONS), CHANDIGARH IN NOT ALLOWING REGISTRATI ON U/S 12A IS UNJUSTIFIED AS NO REASONABLE AND PROPER OPPORTUNITY OF BEING HEARD HAS BEEN PROVIDED TO THE APPELLANT SOCIETY. ITA 1055/CHD/2018 A.Y. 2018-19 PAGE 2 OF 5 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPT IONS), CHANDIGARH IS NOT JUSTIFIED IN REJECTING THE APPLIC ATION U/S 12A OF THE INCOME TAX ACT, 1961 AS THE AIMS & OBJECTS OF THE A PPELLANT SOCIETY ARE GENUINE AND ARE ENTIRELY CHARITABLE IN NATURE. THE APPELLANT SOCIETY DULY FULFILLS ALL THE CONDITIONS OF REGISTR ATION U/S 12A OF THE INCOME TAX ACT, 1961. 4. THAT THE APPELLANT SEEKS LEAVE TO ADD, AMEND, ALTER OR ABANDON ANY OF THE ABOVE GROUNDS AT THE TIME OF HEARING OF THE APPEAL. 2. AT THE TIME OF HEARING, LD. AR MOVED AN APPLICAT ION SEEKING TIME STATING THAT CERTAIN DETAILS ARE BEING SOUGHT FROM THE ASSESSEE. HOWEVER, CONSIDERING THE FACT T HAT THE IMPUGNED ORDER IS AN EX-PARTE ORDER WHERE THE ASSES SEE DESPITE SERVICE OF NOTICE FAILED TO APPEAR, THE LD . AR WAS REQUIRED TO ADDRESS THE APPLICATION SEEKING TIME. THE APPLICATION MADE ACCORDINGLY, WAS WITHDRAWN. THE L D. AR RELYING UPON GROUND NO. 2 RAISED BY THE ASSESSEE IN THE PRESENT PROCEEDINGS MADE A PRAYER SEEKING A REMAND. IT WAS HIS SUBMISSION THAT HE WILL ENSURE THAT THE ASSESSE E ADDRESSES THE ISSUE OF LACK OF PROBABLY PROPER ADDR ESS. GIVING HIS ORAL UNDERTAKING, A PRAYER FOR REMAND WA S MADE STATING THAT AN EFFECTIVE OPPORTUNITY OF BEING HEAR D MAY BE AFFORDED TO THE ASSESSEE. 3. THE LD. CIT-DR CONSIDERING THE ORDER AND THE ORA L UNDERTAKING OF THE LD. AR HAD NO OBJECTION FOR A PR AYER OF REMAND. ITA 1055/CHD/2018 A.Y. 2018-19 PAGE 3 OF 5 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. A PERUSAL OF THE IMP UGNED ORDER SHOWS THAT THE ASSESSEE FILED AN APPLICATION IN FORM NO. 10A OF THE ACT BEFORE THE CIT (EXEMPTIONS) CHAN DIGARH ON 13.12.2017 SEEKING REGISTRATION U/S 12A. ADDRES SING ITS AIMS AND OBJECTS, THE CIT(E) HAS NOTED THAT IT HAS BEEN STATED THAT THESE WERE TO PROVIDE, PROMOTE THE UNIQUE ARCHITECTURAL DESIGN AND CITY PLANNING ASPECTS OF C HANDIGARH, TO PROMOTE ARCHITECTURE IN GENERAL WITH SPECIAL EMP HASIS ON MODERNISM, TO DEVELOP AND FUND SCHOLARSHIPS ON A CO MPETITIVE BASIS, TO DEVELOP AND FUND INITIATIVES INCLUDING BU T NOT LIMITED TO CONFERENCES, LECTURES, CONTESTS, ARTICLES, RESEA RCH PROJECTS TO PROMOTE ARCHITECTURE, DESIGN AND CITY PLANNING, TO SETUP, PROMOTE AND LIAISON BETWEEN INDIAN AND FOREIGN ARCH ITECTURAL, DESIGN AND CITY PLANNING ORGANIZATIONS, TO AWARD SC HOLARSHIPS FOR THE PROMOTION AND ADVANCEMENT OF ARCHITECTURAL EDUCATION, TO DEVELOP THE BODY OF RESEARCH ON CHANDIGARH AND M ODERN ARCHITECTURE, ARCHITECTURE IN GENERAL, DESIGN AND C ITY PLANNING, TO RECEIVE AND COLLECT ANY GIFTS, SUBSCRI PTIONS AND DONATIONS EITHER IN CASH OR IN KIND OR ACQUIRE BY A NY OTHER LAWFUL WAYS AND MEANS AND SPEND THE SAME IN FULFILM ENT OF ALL AND ANY OF THE AFOREMENTIONED AIMS AND OBJECTIV ES OF THE SOCIETY. THE CIT (EXEMPTIONS) TAKING INTO CONSIDERATION THE FACT THAT THE APPLICANT SOCIETY WAS AN ONGOING ENTI TY AS IT ITA 1055/CHD/2018 A.Y. 2018-19 PAGE 4 OF 5 HAD BEEN IN OPERATION SINCE 04.06.2015 REQUIRED THE ASSESSEE TO PLACE VARIOUS DETAILS AND CLARIFICATION S AS EXTRACTED IN PARA 5 PAGE 2 AND 3 OF THE IMPUGNED OR DER, HOWEVER, SINCE THE ASSESSEE FAILED TO APPEAR ON 08. 03.2018, THE CIT(A) MADE ANOTHER ATTEMPT TO FIX THE HEARING ON 28.03.2018. IT APPEARS THAT ONE OF THE NOTICES SEN T RETURNED BACK WITH THE COMMENT NO SUCH PERSON. IT WAS POINTED OUT TO THE LD. AR THAT EVEN NOTICE SENT BY THE REGISTRY ON 19.02.2019 HAD BEEN RECEIVED BACK UNSERVED WITH THE COMMENT NO SUCH PERSON FOUND. THE LD. AR STATED ASSURING THAT HE WILL ENSURE THAT DEFICIENCY IN ADD RESS ETC. SHALL DULY BE TAKEN CARE OF BY THE ASSESSEE. ACCOR DINGLY, CONSIDERING THE SUBMISSIONS ON FACTS AVAILABLE ON R ECORD, ACCEPTING THE ORAL UNDERTAKING GIVEN BY THE LD. AR THAT THE ASSESSEE SHALL ADDRESS THE LACK OF PROPER ADDRESS, IF ANY IN THE INTERESTS OF SUBSTANTIAL JUSTICE, PRAYER MADE I N GROUND NO. 2 IS BEING ALLOWED AND THE MATTER IS RESTORED B ACK TO THE FILE OF THE CIT(EXEMPTIONS) WITH THE DIRECTION TO P ASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 5. THE ASSESSEE IN ITS OWN INTERESTS IS DIRECTED TO ENSURE FULL AND PROPER COMPLIANCES BEFORE THE SAID AUTHORI TY. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. ITA 1055/CHD/2018 A.Y. 2018-19 PAGE 5 OF 5 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JULY,2019. SD/- SD/- ( % & ' ( ) ) ( ! ) (ANNAPURNA GUPTA) (DIVA SINGH) *+ #/ ACCOUNTANT MEMBER ' #/ JUDICIAL MEMBER & % '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR