M/s K.F. Patil Charitable Trust, Ranebennur V. CIT, Davangere

ITA 1132/BANG/2011

• Counselvise Citation: 113221114 RSA 2011
• Duration Of Justice: 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 22-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMASUBRAMANIAN
• Keywords: Charitable institution; Opportunity of being heard; Period of limitation
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER ITA NO.1132/BANG/2011 ASSESSMENT YEAR : 2011-12 M/S. K.F. PATIL CHARITABLE TRUST, RAJ RAJESHWARI COMPLEX, P.B. ROAD, RANEBENNUR 581 115. PAN : VS. THE COMMISSIONER OF INCOME TAX, DAVANGERE. APPELLANT RESPONDENT APPELLANT BY : SHRI S. RAMASUBRAMANIAN, C.A. RESPONDENT BY : SHRI FARAHAT HUSSAIN QURESHI, CIT-II(DR) DATE OF HEARING : 09.10.2012 DATE OF PRONOUNCEMENT : 12.10.2012 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDE R DATED 30.09.2011 OF THE COMMISSIONER OF INCOME-TAX (CIT ), DAVANGERE REJECTING APPLICATION FOR GRANT OF REGISTRATION U/S . 12A(A) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT IN SHORT]. 2. THE GROUNDS OF APPEAL OF THE ASSESSEE READS AS U NDER:- ITA NO.1132/BANG/11 PAGE 2 OF 4 1.0 THAT THE ORDER OF THE LEARNED AUTHORITIES BEL OW IN SO FAR ARE PREJUDICIAL TO THE INTERESTS OF THE APPELLANT ARE B AD AND ERRONEOUS IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF T HE CASE. 2.0 THAT THE LEARNED AUTHORITIES BELOW ERRED IN LA W AND ON FACTS IN NOT GRANTING APPLICATION UNDER SECTION 12A A OF THE INCOME TAX ACT,1961 EVEN THOUGH THE OBJECTS AND ACT IVITIES OF THE TRUST ARE OF CHARITABLE IN NATURE. 3.0 THAT THE LEARNED AUTHORITY ERRED IN LAW IN EXT ENDING HIS SCOPE OF INQUIRY, TO MATTERS WHICH WAS NOT REQUIRED OF HIM BY LAW. EACH OF THE ABOVE IS WITHOUT PREJUDICE TO ONE ANOTH ER AND THE APPELLANT CRAVES LEAVE OF THE HONBLE INCOME-TAX AP PELLATE TRIBUNAL, BANGALORE BENCH, BANGALORE, TO ADD, DELET E, MODIFY OR OTHERWISE AMEND ALL OR ANY OF THE ABOVE GROUNDS EIT HER BEFORE OR DURING THE HEARING. 3. THE ASSESSEE IS A TRUST CREATED ON 19.11.2007 FO R THE PURPOSE OF AWARDING LOANS AND SCHOLARSHIPS TO DESERVING STUDEN TS, SPORTSMEN AND ARTISTS FOR THEIR HIGHER STUDIES, RESEARCH AND TRAI NING INCLUDING RURAL DEVELOPMENT AND OTHER CHARITABLE SERVICES. THE TRU ST WAS CREATED IN THE NAME OF LATE K.F. PATIL, A FREEDOM FIGHTER AND AN E DUCATIONIST. 4. THE ASSESSEE FILED AN APPLICATION FOR REGISTRATI ON U/S. 12A OF THE ACT ON 30.03.2011. THE CASE WAS FIRST POSTED FOR HEARI NG ON 16.09.2011. THE CIT HAS DISMISSED THE APPLICATION FOR GRANT OF REGI STRATION OBSERVING AS FOLLOWS:- 02. IN RESPONSE TO CALL MEMO, SRI. B. P. PATIL CA & AR OF THE TRUST APPEARED. BUT HE DID NOT PRODUCE THE DETAILS IN RESPECT OF SAMUDAYA BHAVANA FUND FOR VERIFICATION. HE HAS NOT PROVIDED DETAILS OF DONORS. 03. VERIFICATION OF THE AUDITED STATEMENTS FOR THE A.Y.2011-12 IT IS FOUND THAT, THE TRUST IS CLAIMING BUILDING MA INTENANCE. BUT AT THE SAME TIME, TRUST IS NOT SHOWING BUILDING AS ASS ET IN THE BALANCE SHEET. THE AR HAS NOT FILED DETAILS IN THIS REGARD. ITA NO.1132/BANG/11 PAGE 3 OF 4 04. UNDER THESE CIRCUMSTANCES, THE TRUST HAS NOT F ULFILLED THE CONDITIONS LAID DOWN FOR GRANT OF REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. IN VIEW OF THIS, THE REQUEST OF THE TRUST FOR GRANT OF REGISTRATION U/S 12AA OF THE I. T. ACT IS REJECTED. 5. IT IS CLEAR FROM THE AFORESAID ORDER OF THE CIT THAT THE IMPUGNED ORDER HAS BEEN PASSED FOR WANT OF CERTAIN PARTICULA RS. WE ARE OF THE VIEW THAT THERE WAS LACK OF PROPER OPPORTUNITY IN AS MUC H AS THERE WAS ONLY ONE HEARING AND THE IMPUGNED ORDER HAS BEEN PASSED ON T HE LAST DAY OF PERIOD OF LIMITATION FOR PASSING ORDER U/S. 12A OF THE ACT . WE THEREFORE SET ASIDE THE ORDER OF THE CIT AND REMAND THE ISSUE WITH REGA RD TO GRANT OF REGISTRATION TO THE ASSESSEE FOR FRESH CONSIDERATIO N BY THE LD. CIT. THE ASSESSEE WILL FURNISH THE REQUIRED INFORMATION AND THE LD. CIT WILL DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER AFFORDING THE ASSESSEE OPPORTUNITY OF BEING HEARD. 6. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 12 TH DAY OF OCTOBER, 2012. SD/- SD/- ( JASON P. BOAZ ) ( N.V. VASUDEV AN ) ACCOUNTANT MEMBER JUDICIAL M EMBER BANGALORE, DATED, THE 12 TH OCTOBER , 2012. DS/- ITA NO.1132/BANG/11 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.