M/s Prajna Education Trust, Shimoga V. CIT, Davangere

ITA 1157/BANG/2011

• Counselvise Citation: 115721114 RSA 2011
• Duration Of Justice: 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 25-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ETWA MUNDA CITIII
• Assessee Lawyers: V SRINIVASAN
• Keywords: Principle of natural justice
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C BEFORE SHRI N. BARAT H VAJA SANKAR, VICE - PRESIDENT A ND SHRI N.V.VASUDEVAN , JUDICIAL MEMBER ITA NO.1157/BANG/2011 M/S.PRAJNA EDUCATION TRUST, TAVARA CHATANAHALLI VILLAGE, HONNALI ROAD, S HIMOGA. APPELLANT VS. THE COMMISSIONER OF INCOME - TAX, DAVANGERE. RESPONDENT A PPELLANT BY: SHR I V.SRINIVASAN, CA. RESPONDENT BY : SHRI ETWA MUNDA, CIT - III. DATE OF HEARING: 13 - 09 - 2012. DATE OF PRONOUNCEMENT: 13 - 09 - 20 12. O R D E R PER N. BARATHVAJA SANKAR, VP: THIS IS AN APPEAL BY THE ASSESSEE-M/S.PRAJNA EDUCAT ION TRUST, SHIMOGA AGAINST THE ORDER DATED 29-9-2011 PA SSED BY THE CIT, DAVANGERE, U/S 12AA OF THE INCOME-TAX ACT, 196 1 [HEREINAFTER REFERRED TO AS 'THE ACT'] REFUSING TO GRANT REGISTRATION TO THE ASSESSEE. THE EFFECTIVE GROUNDS OF APPEAL RA ISED BY THE ASSESSEE READ AS UNDER: ITA NO.1157/BANG/2011 PAGE 2 OF 3 1. THE LEARNED DIT(E) IS NOT JUSTIFIED IN REFUSING TO REGISTER THE TRUST U/S 12AA OF THE IT ACT ON THE GR OUND THAT THE APPELLANT HAS NOT COMPLIED THE REQUIREMENT S UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANTS CASE. 2. THE LEARNED DIT(E) FAILED TO APPRECIATE THAT TH E OBJECTS OF TRUST IS CHARITABLE IN NATURE AND THEREF ORE, THE LEARNED DIT(E) IS NOT JUSTIFIED IN REJECTING TH E APPLICATION FOR REGISTRATION UNDER SECTION 12A OF T HE ACT ON THE UNSUSTAINABLE GROUND THAT THE APPELLANT HAS NOT COMPLIED WITH THE DETAILS CALLED FOR. THE LEARNED DIT(E) OUGHT TO HAVE APPRECIATED THAT THE APPELLANT IS CARRYING ON ACTIVITY WHICH IS CHARITAB LE IN NATURE AND THEREFORE THE FINDING OF THE LEARNED DIT (E) AS WELL AS HIS ORDER REFUSING TO REGISTER THE TRUST U/S 12A OF THE ACT IS VITIATED AND ULTRA VIRES THE PROV ISIONS OF SEC. 12AA OF THE ACT AND THE IMPUGNED ORDER MAY BE SET-ASIDE AND THE DIT(E) MAY BE ORDERED TO GRAN T REGISTRATION U/S 12AA OF THE ACT. 2. WE HAVE HARD RIVAL SUBMISSIONS AND CONSIDERED TH E FACTS AND CIRCUMSTANCES OF THE CASE AND MATERIAL ON RECOR D. WE FIND THAT THE CIT, IN HIS ORDER, HAS NOT DISCUSSED ANYTH ING REGARDING THE OBJECTS OF THE TRUST AND HOW THOSE OBJECTS WERE NOT CHARITABLE ETC. HE HAS SUMMARILY REJECTED THE APPLICATION FOR REGISTRATION U/S 12AA BY PASSING A NON-SPEAKING ORDER. IN THIS VIEW OF THE MATTER AND IN THE INTEREST OF NATURAL JUSTICE, WE DEEM IT FIT AND PROPER TO RESTORE THIS MATTER BACK TO THE FILE OF THE CIT WIT H A DIRECTION TO PASS A SPEAKING ORDER ACCORDING TO LAW AND AFTER GI VING EFFECTIVE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESS EE ALSO SHALL CO-OPERATE WITH THE CIT BY PRODUCING NECESSARY DETA ILS THAT WOULD BE SOUGHT FOR BY HIM. ITA NO.1157/BANG/2011 PAGE 3 OF 3 3. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH SEPTEMBER, 2012 . SD/- SD/- (N.V.VASUDEVAN ) JUDICIAL MEMBER (N.BARATHVAJA SANKAR) VICE-PRESIDENT EKS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) CONCERNED 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBU NAL, BANGALORE