Amararaja Educational Society, Tirupathi V. The ACIT, Tirupathi

ITA 117/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66264 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 27-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: E PHALGUNA KUMAR
• Keywords: Opportunity of being heard
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 117/HYD/2012 ASSESSMENT YEAR : N.A. M/S. AMARARAJA EDUCATIONAL SOCIETY, TIRUPATI; PAN: AABAA9695H VS. THE ASST. CIT CIRCLE-1(1) TIRUPATI APPELLANT RESPONDENT APPELLANT BY: SRI E. PHALGUNA KUMAR RESPONDENT BY: SMT. NIVEDITA BISWAS DATE OF HEARING: 09.08.2012 DATE OF PRONOUNCEMENT: 07.09.2012 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT, TIRUPATI DATED 23.12.2011. 2. THE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS WIT H REGARD TO REJECTION OF APPLICATION BY THE CIT, TIRUPATI, F ILED FOR REGISTRATION U/S. 12AA AND APPROVAL FOR EXEMPTION U /S. 80G OF INCOME-TAX ACT, 1961 WITHOUT GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE. 3. THE LEARNED AR SUBMITTED THAT THE ASSESSEE FILED APPLICATION FOR REGISTRATION U/S. 12AA AND RENEWAL OF EXEMPTION U/S. 80G OF THE ACT. THE DIT CALLED FOR CERTAIN I NFORMATION VIDE HIS LETTER DATED 24.11.2011 LIKE BOOKS OF ACCOUNT, VOUCHERS FOR LAST THREE YEARS, ORIGINAL TRUST DEED/MOA FOR VERIF ICATION AND ALSO DIRECTED TO INCORPORATE CERTAIN CLAUSES TO MOA AND ASKED FOR NOTE ON IMMEDIATE PLAN OF ACTION. CONSEQUENT T O THIS LETTER, THE ASSESSEE FILED CERTAIN INFORMATION BEFORE THE D IT VIDE ITS I.T.A. NO. 117/HYD/2012 M/S. AMARARAJA EDUCATIONAL SOCIETY ============================ 2 LETTER DATED 19.12.2011. THE DIT AFTER CONSIDERING THE INFORMATION FURNISHED BY THE ASSESSEE, REJECTED THE APPLICATION FOR GRANT OF REGISTRATION U/S. 12AA AND APPROVAL FO R EXEMPTION U/S. 80G. THE GRIEVANCE OF THE ASSESSEE BEFORE US IS THAT THE DIT NOT GIVEN AN OPPORTUNITY OF HEARING BEFORE REJECTIN G THE ABOVE APPLICATION FILED BY THE ASSESSEE. THE AR PRAYED T HAT AN OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE BY THE DIT BEFORE DECIDING THE ISSUE. 4. THE DR HAS NOT PUT ANY SERIOUS OBJECTION FOR THE ARGUMENT OF THE ASSESSEES COUNSEL. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. ADMITTEDLY, THE REQUIRED INFORMATION CA LLED BY THE DIT HAS BEEN FILED BY THE ASSESSEE. THE DIT BEFORE REJECTING THE APPLICATION NOT GIVEN PERSONAL HEARING TO THE ASSES SEE AND FOUND THAT THE INFORMATION FURNISHED BY THE ASSESSE E IS NOT SUFFICIENT TO GRANT THE REGISTRATIONS SOUGHT BY THE ASSESSEE. IN OUR OPINION, THE ASSESSEE SHOULD BE GIVEN A REASONA BLE OPPORTUNITY OF BEING HEARD BEFORE PASSING AN ORDER. HE SHALL GIVE PROPER REASON IN SUPPORT OF HIS FINDINGS. THI S IS A CASE OF CLEAR CONTRAVENTION OF PRINCIPLES OF NATURAL JUSTIC E AND THAT ITSELF INVALIDATES THE ENTIRE PROCEEDINGS OF THE DIT. ACC ORDINGLY, IT IS FAIR TO REMIT BACK THE ISSUE TO THE FILE OF THE DIT WHO SHALL GIVE AN OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE TA KING ANY DECISION ON THE ISSUE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH SEPTEMBER, 2012. SD/- (SAKTIJIT DEY) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 7 TH SEPTEMBER, 2012 I.T.A. NO. 117/HYD/2012 M/S. AMARARAJA EDUCATIONAL SOCIETY ============================ 3 TPRAO COPY FORWARDED TO: 1. M/S. AMARARAJA EDUCATIONAL SOCIETY, AMARARAJA COMPOUND, RENIGUNTA-KADAPA ROAD, KARAKARMBADI-517 520, TIRUPATI. 2. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-1(1 ), AAYAKAR BHAVAN, K.T. ROAD, TIRUPATI. 3. THE CIT, TIRUPATI 4. THE JT. CIT, RANGE-1, TIRUPATI 5. THE DR A BENCH, ITAT, HYDERABAD