NAGARJUNA CULTURAL CENTERE, GUNTUR V. INCOME TAX OFFICER(EXEMPTIONS), GUNTUR

ITA 113/VIZ/2023

AI Insights

The case involves multiple appeals by different charitable trusts and organizations against the orders of the Commissioner of Income Tax (Exemptions), which rejected their applications for registration under Section 12AB of the Income Tax Act, 1961. The primary issue was the non-compliance of the assessees in providing mandatory information and documentary evidence as required by the CIT(E). The Tribunal noted that despite being given multiple opportunities, the assessees failed to comply, leading to the rejection of their applications. However, considering the principles of natural justice and a plea from the assessees' representative, the Tribunal decided to remit the matter back to the CIT(E) for a fresh consideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135871 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-05-2023
• Assessment Year: misc
• Appeal Filed On: 09-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.113/Viz/2023 (ननधधारण वर्ा / Assessment Year :-NA-) Nagarjuna Cultural Centre D.No.5-21-34, 2/14, Brodipet Guntur [PAN : AAATN4932A] Vs. Income Tax Officer (Exemptions) Guntur आयकर अपील सं./I.T.A.No.114/Viz/2023 & 115/Viz/2023 (ननधधारण वर्ा / Assessment Year :-NA-) Polisetty Somasundaram Charities D.No.20-1-23, Sambasivapet 2 nd Lane, Guntur [PAN :AAATP6658D] Vs. Income Tax Officer (Exemptions) Guntur Polisetty Somasundaram & Nagaratnamma Charities D.No.8-24-31, Mangalagiri Road Guntur [PAN :AAATP2947H] आयकर अपील सं./I.T.A.No.116/Viz/2023 (ननधधारण वर्ा / Assessment Year :-NA-) Sri Rajarajeswari Charitable Trust D.No.8-24-31 Mangalagiri Road Guntur [PAN : AALTS2354L] Vs. Income Tax Officer (Exemptions) Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Shri M.N.Murthy Naik, CIT(DR) सुनवधई की तधरीख / Date of Hearing : 29.05.2023 घोर्णध की तधरीख/Date of Pronouncement : 31.05.2023 2 I.T.A. No.113-116/Viz/2023 Polisetty Somasundaram Charities, Guntur & Others आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : These appeals are filed by the assessees against the orders of Commissioner of Income Tax (Exemption) [CIT(E)] dated 09.02.2023. Since, the issue involved in these appeals is identical, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. Facts are extracted from I.T.A.No.114/Viz/2023. 2. Brief facts of the case are that the assessee had filed an e- application in Form No.10AB, seeking registration u/s 12AB of the Income Tax Act, 1961 (in short “Act”). Notice dated 23.11.2022 was issued in respect of proceedings u/s 12A(1)(ac)(ii) to the address mentioned in the Form 10AB to produce copy of Memorandum of Associaton / Trust Deed for verification and to furnish a detailed reply by 08.12.2022 on the specific information called for in the said notice. As there was no compliance from the assessee to the said notice, the assessee was given final opportunity of being heard on 04.01.2023 to submit the information. However, there was no response from the assessee and the assessee has not filed any information or documentary evidence. Hence, after careful consideration of the application for registration in Form No.10AB, Ld.CIT(E) rejected the application seeking 3 I.T.A. No.113-116/Viz/2023 Polisetty Somasundaram Charities, Guntur & Others registration u/s 10AB, since, the assessee failed to furnish mandatory information and since the case is to be decided in time bound manner. 3. On being aggrieved, the assessee preferred an appeal before the Tribunal by raising the following grounds : 1. The order of the learned Commissioner of Income Tax (Exemtpion), Hyderabad is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Exemtpion) is not justified in rejecting the applicaiton filed by applicant in Form No.10AB for Registration u/s 12AB of the Act. 3. Any other ground that may be urged at the time of appeal hearing. 4. Ground No.1 and 3 are general in nature which do not require specific adjudication. 5. Ground No.2 is related to rejection of application in Form No.10AB for registration u/s 12AB of the Act. At the outset, the Ld.AR submitted that the Ld.CIT(E) is not justified in rejecting the application filed in Form No.10AB for Registration u/s 12AB of the Act. The Ld.AR further submitted that the reply filed by the assessee on 02.12.2022 is not considered and therefore, pleaded to afford one more opportunity of being heard before the Ld.CIT(E) to substantiate it’s case. 4 I.T.A. No.113-116/Viz/2023 Polisetty Somasundaram Charities, Guntur & Others 6. Per contra, the Ld.DR submitted that the assessee was given sufficient opportunities of being heard before the Ld.CIT(E) and to furnish information or documentary evidence. However, since the assessee failed to submit mandatory information, the Ld.CIT(E) is justified in rejecting the applicaton filed in Form No.10AB for registration u/s 12AB. Therefore, pleaded to uphold the order passed by the Ld.CIT(E) and dismiss the appeal of the assessee. 7. We have heard both the parties and perused the material available on record. It is apparent from the records that the assessee was given sufficient opportunities before the Ld.CIT(E) to furnish the mandatory information for registration u/s 12AB, but the assessee failed to furnish any information or documentary evidence due to some personal inconveniences. However, since the Ld.AR pleaded to afford one more opportunity of being heard to the assessee before the Ld.CIT(E), keeping in view the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(E) to afford one more opportunity of being heard. The assessee is also directed to adhere to the notices issued by the department and file information with documentary evidence. 8. In the result, all the appeals filed by the assessee are allowed for statistical purpose. 5 I.T.A. No.113-116/Viz/2023 Polisetty Somasundaram Charities, Guntur & Others Order pronounced in the open court on 31 st May 2023. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 31.05.2023 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– M/s Nagarjuna Cultural Centre, D.No.5-21-34, 2/14, Brodipet, Guntur (ii) M/s Polisetty Somasundaram Charities, D.No.20-1-23, Sambasivapet, 2 nd Lane, Guntur (iii) M/s Polisetty Somasundaram & Nagaratnamma Charities, D.No.8- 24-31, Mangalagiri Road, Guntur (iv) Sri Rajarajeswari Charitable Trust, D.No.8-24-31, Mangalagiri Road Guntur 2. रधजस्व/The Revenue – The Income Tax Officer (Exemptions), 2 nd Floor, Rajkamal Complex, Main Road, Lakshmipuram, Guntur 3. The Commissioner of Income Tax (Exemptions) Hyderabad 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam