Narayana Education Trust, Hyd, Hyderabad V. CIT(Exemptions), Hyd, Hyderabad

ITA 1077/HYD/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3002 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 09-02-2016
• Assessment Year: misc
• Appeal Filed On: 18-08-2015
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: S RAMA RAO
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ES A , HYDERABAD BEFORE S HRI D . MA NMOHAN , VICE PRESIDENT AND SHRI S . RI F A UR RAHMAN , ACCOUNTANT MEMBER I.T.A. NO. 1 077 /H YD /20 15 NARAYANA EDUCATION TRUST, HYDERABAD [PAN: A ABTN8063B ] VS COMMISSIO NER OF INCOME TAX (EXEMPTIONS), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO, AR FOR REVENUE : S MT. NIVEDITA BISWAS, DR DATE OF HEARING : 0 9 - 0 2 - 201 6 DATE OF PRONOUNCEMENT : 09 - 0 2 - 201 6 O R D E R PER D. MANMOHAN, VICE - PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD, WHEREIN HE HAS RE JECT ED APPLICATION FILED BY THE ASSESSEE , IN F ORM 10A , SEEKING REGISTRATION U/S. 12AA OF THE INCOM E TAX ACT , 1961 . 2. THE SOLE GROUND OF THE ASSESSEE IS THAT THE LD. CIT(EXEMPTIONS) ERRED IN HOLDING THAT THERE IS NON - COMPLIANCE ON THE PART OF THE ASSESSEE IN RESPONSE TO THE NOTICE ISSUED ON 09 - 02 - 2005 WHEREAS THE FACT REMAINS THAT NO NOTICE WAS SERVED ON THE ASSESSEE. THUS, THE PRELIMINARY OBJECTION OF THE ASSESSEE - TRUST IS THAT THE CIT(E) ERRED IN REJECTING THE APPLICATION FILED IN F ORM 10A I.T.A. NO. 1 077 / HYD / 20 15 NARAYANA EDUCATION TRUST : - 2 - : IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. EVEN ON MERITS, IT WAS SUBMITTED THAT THE CIT(EXEMPTIONS) OUGHT TO HAVE SEEN THE OBJECTS OF THE TRUST WHICH CLEARLY DEPICTS THAT IT WAS FOR PROMOTION OF EDUCATION AND THEREFORE IT DESERVES TO BE CONSIDERED AS A CHARITABLE OBJECT . IT WAS ALSO CONTENDED THAT THE TRUST IS ESTABLISHED WITHOUT ANY PROFIT MOTIVE AND HENCE IT IS ENTITLED FOR REGISTRATION U/S. 12AA OF THE ACT. 3. DESPITE THE FACT THAT THE ASSESSEE RAISED A PRELIMINARY OBJECTION IN THE GROUNDS OF APPEAL , WITH REGARD TO THE ORDER PASSED BY THE CIT WITHOUT PROVIDING AN OPPORTUNITY OF HEARING, THE LD.CIT - DR C OULD NOT FURNISH ANY MATERIAL BEFORE US TO CONTRADICT THE STAND OF THE ASSESSEE. IN OTHER WORDS, THE LD. DR COULD NOT PLACE ANY MATERIAL TO SHOW THAT THE ASSESSEE WAS GIVEN REASONABLE OPPORTUNITY TO FURNISH THE ORIGINAL TRUST DEED FOR VERIFICATION AND TO FURNISH DETAILED REPLY ON SPECIFIC POINTS. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE THE MATTER DESERVES TO BE SET ASIDE TO THE FILE OF CIT(EXEMPTIONS) , WHO IS DIRECTED TO GIVE THE ASSESSEE A REASONA BLE OPPORTUNITY OF BEING HEARD AND TO CONSIDER THE MATTER IN ACCORDANCE WITH LAW. W ITH THESE OBSERVATIONS, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCE D ACCORDINGLY IN THE OPEN COURT SD/ - SD/ - ( S. RIFAUR RAHMAN ) ( D. MANMOHAN ) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED 09 - 02 - 2016 TNMM I.T.A. NO. 1 077 / HYD / 20 15 NARAYANA EDUCATION TRUST : - 3 - : COPY TO : 1. NARAYANA EDUCATION TRUST, NO. 401, SARADA EDIFICE, HIMAYAT NAGAR, HYDERABAD. C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3 - 6 - 643, STREET NO. 9, HIMAYATNAGAR, HYDERABAD. 2 . INCOME TAX OFFICER (EXEMPTIONS), WARD - 2, POSNETT BHAVAN, RAMKOTI, HYDERABAD. 3 . CIT ( EXEMPTIONS ) , HYDERABAD. 4 . D.R. ITAT, HYDERABAD. 5 . GUARD FILE.