Dinodia Educational Society, Siliguri V. CIT, Siliguri, Siliguri

ITA 1132/KOL/2010

• Counselvise Citation: 113223514 RSA 2010
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2011
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 11-04-2011
• Assessment Year: misc
• Appeal Filed On: 04-06-2010
• Court: TRIBUNAL
• Department Lawyers: A KUMAR
• Assessee Lawyers: S K TULSIYAN
• Keywords: Principle of natural justice; Non compliance

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 1132/KOL/2010 %& '(/ ASSESSMENT YEAR : (*+ / APPELLANT ) DINODIA EDUCATIONAL SOCIETY (PAN: AABTD 1487 F) - % - - VERSUS - . (-.*+/ RESPONDENT ) THE C.I.T., SILIGURI *+ / 0 '/ FOR THE APPELLANT: SHRI S.K.TULSIYAN -.*+ / 0 '/ FOR THE RESPONDENT: SHRI A.KUMAR '1 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 2.3.2010 OF THE CIT-SILIGURI. 2. THE ONLY ISSUE RAISED BY THE ASSESSEE IN THIS C ASE IS REFUSAL OF RENEWAL OF EXEMPTION U/S 80G(5)(V) OF THE IT ACT. 3. THERE IS A DELAY OF 30 DAYS IN FILING OF THE APPEAL BY THE ASSESSEE FOR WHICH THE ASSESSEE HAS FILED A CONDONATION PETITION EXPLAININ G THE REASONS FOR SUCH DELAY. AFTER CONSIDERING THE SUBMISSIONS BY THE ASSESSEE THE DEL AY IS CONDONED. 4. THE BRIEF FACTS OF THIS CASE ARE THAT THE ASSESS EE SOCIETY HAS APPLIED FOR RENEWAL OF REGISTRATION U/S 80G(5)(V) OF THE IT ACT TO THE COMMISSIONER OF INCOME TAX. THE LD. CIT HAS REFUSED THE SAME BY OBSERVING THAT THE ASSESSEE HAS NOT PRODUCED THE DETAILS OF THE DONORS THOUGH SEVERAL OPPORTUNITIES HAS BEEN GIVEN AS DISCUSSED IN THE IMPUGNED ORDER. THE RELEVANT OBSERVATIONS OF THE LD . CIT ARE AS UNDER :- 2 9.0. THE PRIMARY ONUS OF PROVING THE IDENTITY AND CREDIBILITY OF THE DONORS AS WELL AS THE GENUINENESS OF THE DONATION TRANSACTION S LIES WITH THE ASSESSEE. SUFFICIENT TIME WAS GRANTED TO THE APPLICANT SOCIET Y FOR PRODUCTION OF DONORS IN THE LIGHT OF NATURAL JUSTICE. HOWEVER, IN SPITE OF AMPLE OPPORTUNITIES GRANTED TO THE APPLICANT SOCIETY, IT FAILED TO COMPLY WITH THE DIRECTIONS OF THIS OFFICE NOTICE AND ALSO FAILED TO GIVE ANY JUSTIFICATIONS FOR SUCH NON COMPLIANCE THEREBY LEADING TO BELIEVE THAT IT HAS NO EXPLANATION TO PR OVE THE GENUINENESS OF SUCH DONATIONS. FURTHER, THE NON COMPLIANCE ON THE PART OF THE APPLICANT CLEARLY SHOWS THAT THE APPLICANT SOCIETY HAS NO INTEREST TO VALIDATE IT SOWN CLAIM. 4.1. AGGRIEVED BY THIS THE ASSESSEE IS IN APPEAL BE FORE US. 5. AT THE TIME OF HEARING BEFORE US, THE LD. COUNSE L APPEARING ON BEHALF OF THE ASSESSEE BY RELYING ON THE TRIBUNALS DECISION IN T HE CASE OF KALYANAM KAROTI VS CIT (LUCKNOW) AS REPORTED IN 314 ITR AT 295 CONTENDED T HAT UNDER SIMILAR FACTS AND CIRCUMSTANCES THE LUCKNOW BENCH OF THE TRIBUNAL HAS DIRECTED THE LD. CIT TO GRANT THE RENEWAL OF REGISTRATION U/S 80G(5)(V) OF THE IT ACT . THEREFORE HE REQUESTED TO SET ASIDE THE ORDERS OF THE LD. CIT AND DIRECT HIM TO GRANT R ENEWAL OF REGISTRATION. 6. ON THE OTHER HAND, THE LD. DR APPEARING ON BEHAL F OF THE REVENUE BY REFERRING TO THE IMPUGNED ORDER PASSED BY THE LD.CIT STATED T HAT THE ASSESSEE HAS NOT AVAILED OF SEVERAL OPPORTUNITIES AS RECORDED IN THE IMPUGNED O RDER AND HE FURTHER FAILED TO EXPLAIN TO PROVE THE GENUINENESS OF THE DONATIONS R ECEIVED. IN THIS CIRCUMSTANCES THE LD. CIT IS JUSTIFIED IN NOT GRANTING RENEWAL OF REG ISTRATION. THEREFORE, HE HEAVILY RELIED ON THE ORDERS OF THE C.I.T. 7. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIAL AVAILABLE ON RECORD INCLUDING THE CASE LAW RELIED ON BY THE L D. COUNSEL FOR THE ASSESSEE, IT IS OBSERVED THAT LUCKNOW BENCH OF THE TRIBUNAL IN THE CASE REFERRED (SUPRA) HAS HELD AS UNDER :- 9. THE LEARNED AUTHORIZED REPRESENTATIVE RELIED O N THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF N.N.DESAI CHARITA BLE TRUST V. CIT [2000] 246 ITR 452. IT IS HELD THEREIN THAT THE SCOPE OF E NQUIRY IS CONFINED TO FIND OUT WHETHER THE INSTITUTION SATISFIES THE PRESCRIBED CO NDITIONS. ACTUAL ASSESSMENT OF THE INSTITUTION WOULD NOT AFFECT THE CLAIM FOR SPEC IAL DEDUCTION UNDER SECTION 8G. THIS AUTHORITY SUPPORTS OUR CONCLUSION THAT THE LEARNED COMMISSIONER OF INCOME TAX HAS ONLY TO SEE WHILE GRANTING RECOGNITI ON UNDER SECTION 80G(5) OR 3 CONTINUATION THEREOF WHETHER SOCIETY FULFILS THE CO NDITIONS LAID DOWN IN CLAUSES (I) TO (V) OF SECTION 80G(5) AND NOT WHETHER CERTAIN RECEIPTS, I.E. VOLUNTARY DONATIONS ARE PROPERLY EXPLAINED OR NOT. THIS IS A JOB OF THE ASSESSING OFFICER AND THE LEARNED COMMISSIONER OF INCOME-TAX CANNOT A CT AS THE ASSESSING AUTHORITY. 10. AS A RESULT, WE DIRECT THE LEARNED COMMISSION ER OF INCOME-TAX TO GRANT CONTINUATION OF REGISTRATION TO THE SOCIETY UNDER S ECTION 80G(5). 7.1. KEEPING IN VIEW OF THE FACT THAT IN THIS CASE THE FACTS ARE AKIN TO THE ONE DECIDED BY THIS TRIBUNAL CITED SUPRA. WE FIND NO RE ASON TO DEVIATE FROM THE SAME. THEREFORE RESPECTFULLY FOLLOWING THE SAME WE DIREC T THE LD. CIT TO GRANT CONTINUATION OF RENEWAL OF REGISTRATION U/S 80G(5)(V) OF THE IT ACT. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN THE COURT ON 13.04.2011. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 13.04.2011. '1 / -2 3'2'4- COPY OF THE ORDER FORWARDED TO: 1. DINODIA EDUCATIONAL SOCIETY, TENZING NORGAY ROAD, D AGAPUR, P.O.PRADHAN NAGAR, SILIGURI. 2 THE C.I.T., SILIGURI 3. THE CIT, 4 . DR, KOLKATA BENCHES, KOLKATA .2 -/ TRUE COPY, '1%8/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.) 4