M/s Vishwa Ganigara Samudaya Trust, Bangalore V. Director of Income tax,(Exemption), Bangalore

ITA 1271/BANG/2014

• Counselvise Citation: 127121114 RSA 2014
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 15-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAHANAB AKTAR
• Assessee Lawyers: S VENKATESAN
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI , JUDICIAL MEMBER A ND SHRI JASON P.BOAZ, ACCOUNTANT MEMBER ITA NO S . 1271 & 1272 / BANG/20 1 4 M/S.VISHWA GANIGARA SAMUDAYA TRUST, NO.40/1, 14 TH CROSS, VYALIKAVAL EXT N. BANGALORE - 560003. VS. APPELLANT DIRECTOR OF INCOME - TAX (EXEMPTION), BANGALORE. RESPONDENT A PPELLANT BY: SHRI S.VENKATESAN, CA. RESPONDENT BY: SHRI JAHANAB AKTAR, CIT (DR). DATE OF HEARING : 30 /0 3 /2015. DATE OF PRONOUNCEMENT: 30 /0 3 /2015. O R D E R PER BENCH : THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST DENIAL OF REGISTRATION U/S 12AA AS WELL AS U/S 80G OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] RESPECTIVELY BY ORDERS OF THE DIRECTO R OF INCOME - TAX (EXEMPTION) [DIT(E) FOR SHORT] DATED 30/6/2014 . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST WHICH FILED AN APPLICATION FOR REGISTRATION U/S 12AA AND ALSO FOR REGISTRATION U/S 80G ON 23/12/2013. THE DIT(E) ISSUED A LETTER DA TED 19/2/2014 CALLING FOR SOME DETAILS. SINCE THERE WAS NO COMPLIANCE TO SUCH NOTICE, ANOTHER NOTICE DATED 30/4/2014 WAS ISSUED. SINCE THE ASSESSEE DID NOT FURNISH REQUIRED DETAILS ON ITA NO S . 1271 & 1272/BANG/2014 M/S.VISHWA GANIGARA SAMUDAYA TRUST. PAGE 2 OF 3 SUCH DATE, THE DIT(E) DISMISSED THE APPLICATION FOR NON - COMPLIANCE. CON SEQUENTLY, APPLICATION FOR REGISTRATION U/S 80G WAS REJECTED ON THE GROUND THAT REGISTRATION U/S 12AA WAS NOT GRANTED. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A TRUST CRATED F OR CHARITABLE PURPOSE S AND THE DIT(E) HAD NOT CONSIDERED THE ISSUE ON MERITS. HE DREW OUR ATTENTION TO NOTIFICATION OF THE GOVERNMENT OF KARNATAKA WHEREIN THE CASTE GANIGARA WAS INCLUDED AS A BACKWARD COMMUNITY. THUS, ACCORDING TO HIM, THE TRUST WOULD FALL WITHIN THE EXCEPTIONS CARVED OUT IN EXPLANATION 2 TO SUB - SEC.(6) OF SEC.13 OF THE ACT. THEREFORE, HE PRAYED THAT THE ASSESSEE S CASE MAY BE CONSIDERED ON MERITS. THE LEARNED DEPARTMENTAL REPRESENTATIVE, HOWEVER, SUBMITTED THAT SUFFICIENT OPPORTUNIT IES WERE GIVEN TO THE ASSESSEE TO PRESENT ITS CASE BUT SINCE THERE WAS NO COMPLIANCE TO THE NOTICE S ISSUED BY THE DIT(E) , HE WAS CONSTRAINED TO REJECT THE APPLICATION S . 3. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE DIT(E) HAD ISSUED TWO NOTICES WITHIN A SPAN OF TWO MONTHS TO THE ASSESSEE AND THE ASSESSEE HAD FAILED TO RESPOND TO THE SAME DUE TO WHICH THE APPLICATIONS WERE REJECTED . HOWEVER, IT IS SEEN THAT THERE WAS NO DISCUSSION ITA NO S . 1271 & 1272/BANG/2014 M/S.VISHWA GANIGARA SAMUDAYA TRUST. PAGE 3 OF 3 ON MERITS OF THE CASE IN T HE ORDER . IN VIEW OF THE SAME, WE DEEM IT FIT AND PROPER TO RECALL THE ORDERS OF THE DIT(E) AND REMAND THE ISSUE TO THE FILE OF THE DIT(E) FOR RE - CONSIDERATION AFTER AFFORDING THE ASSESSEE A REASONABLE OPPORTUNITY OF HEARING. IT IS ALSO MADE CLEAR THAT T HE ASSESSEE SH OULD CO - OPERATE WITH THE DIT(E) BY FURNISHING ALL THE REQUIRED DOCUMENTS WITHIN THE PERIOD STIPULATED BY THE DIT(E). 4. IN THE RESULT, BOTH THE APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRO N OUNCED IN THE OPEN COURT ON 30 TH MARCH , 201 5 . SD/ - SD/ - (JASON P BOAZ ) ( SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE