M/s Atma Ram Kundra Charitable Trust, Chandigarh V. CIT (Exemptions), Chandigarh

ITA 129/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6959 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 16-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSHIL KUNMAR
• Keywords: Gift; Charitable institution; Opportunity of being heard
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 129/CHD/2017 (UNDER SECTION 12AA(1)(B)(III)) M/S ATMA RAM KUNDRA CHARITABLE TRUST, VS. THE CIT (EXEMPTIONS), HOUSE NO. 1138, SECTOR 44-B, CHANDIGARH. CHANDIGARH. PAN NO. AAFTA4409G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINEET KRISHAN RESPONDENT BY : SHRI SUSHIL KUNMAR, CIT-DR DATE OF HEARING : 07.06.2017 DATE OF PRONOUNCEMENT : 03.08.2017 ORDER PER MS. DIVA SINGH,JM THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A SSAILING THE CORRECTNESS OF THE ORDER U/S 12AA(1)(B)(II) OF INCOME TAX ACT DATED 30 .11.2016 OF CIT (EXEMPTIONS) CHANDIGARH ON VARIOUS GROUNDS INCLUDING GROUND NO. 2 WHICH READS AS UNDER : THAT NO REASONABLE OPPORTUNITY OF BEING HEARD WAS GRANTED BY THE LD. CIT (EXEMPTIONS) AND ERRED IN PASSING AN EXPARTE ORDER. 2. ALTHOUGH VARIOUS GROUNDS HAVE BEEN RAISED ON MER ITS, HOWEVER, SINCE THE PARTIES WERE HEARD ONLY IN RESPECT OF THE ABOVE MENTIONED G ROUND, THE SAME IS BEING CONSIDERED. RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE TR UST CLAIMED THAT ITS AIMS AND OBJECTS ARE TO PROVIDE EDUCATION TO THE GENERAL PUBLIC WITHOUT DIS TINCTION AND DISCRIMINATION OF ANY KIND ON THE GROUNDS OF RELIGION, RELIGIOUS COMMUNITY, CA STE AND CREED OF COLOUR; TO IMPROVE THE MEDICAL AID AND RELIEF TO THE SUFFERING HUMANITY AN D NEEDFUL PEOPLE BY AIDING THEM BY PROVIDING MEDICINES AND OTHER NURSING CARE AND OTHE R MEDICAL ASSISTANCE TO THE POOR PATIENTS; TO ACQUIRE, PURCHASE, ACCEPT AS GIFT OR D ONATION OR CONTRIBUTION, SELL OR DISPOSE OF OR OTHERWISE TRANSFER TEMPORARILY OR PERMANENTLY AN D PROPERTY BOTH MOVEABLE OR IMMOVEABLE TO CARRY OUT THE PURPOSES OF THE TRUST A ND FOR THE BENEFIT AND IN THE BEST INTEREST OF THE TRUST; TO TAKE CARE OF ENVIRONMENT AND TO PR OVIDE ENVIRONMENT AWARENESS TO GENERAL PUBLIC; TO IMPROVE THE QUALITY OF LIFE OF THE PEOPL E BY HOLDING TALKS, SEMINARS, WORKSHOPS AND BY IMPARTING ACADEMIC AND SPIRITUAL KNOWLEDGE BY SE TTING UP COACHING CENTRES, COMMUNITY ITA 129/CHD/2017 PAGE 2 OF 2 CENTERS; TO GIVE SCHOLARSHIP TO NEEDY AND MERITORIO US STUDENTS TO HELP THEM TO PURSUE THEIR EDUCATION. 2.1 AN APPLICATION IN FORM 10A FOR SEEKING REGIST RATION U/S 12A WAS FILED BEFORE THE APPROPRIATE AUTHORITY. HEARING AFTER NOTICE WAS FI XED ON 09.11.2016 AND 18.11.2016 AND ON BOTH THE DATES, THE ASSESSEE TRUST REMAINED UNREPRE SENTED LEADING TO THE REJECTION OF THE APPLICATION MOVED. 2.2 THE LD. AR RELYING UPON THE AFFIDAVIT OF SHR I ASHOK KUMAR KUNDRA S/O SHRI ATMA RAM KUNDRA AS THE MANAGING TRUSTEE OF THE TRUST STA TED THAT THE ASSESSEE TRUST REMAINED UNREPRESENTED AS ARRANGEMENT FOR ENSURING PARTICIPA TION BEFORE THE TAX AUTHORITY COULD NOT BE MADE AS THE MANAGING TRUSTEE WAS OUT OF THE COUN TRY SINCE 09.11.2016 AND RETURNED ONLY ON 11.12.2016. THE SAID SUBMISSION WAS SUPPORTED B Y THE TRAVEL ITINERARY PLACED ON RECORD. ACCORDINGLY, IT WAS HIS LIMITED PRAYER THAT THE ISS UE MAY BE REMANDED BACK TO THE SAID AUTHORITY IN ORDER ENSURE AN OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. 2.3 CONSIDERING THE AFFIDAVIT AND THE SUBMISSION O F LD. AR, THE LD. CIT-DR HAD NO OBJECTION IF THE ISSUE IS RESTORED IN ORDER TO AFFORD AN OPPO RTUNITY. 3. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE MA TERIAL ON RECORD. ON A CONSIDERATION OF THE AFFIDAVIT FILED AND THE UNDERT AKING GIVEN BY LD. AR, WE ARE OF THE VIEW THAT IN THE PECULIAR FACTS AND CIRCUMSTANCES, THE I MPUGNED ORDER CAN BE SET ASIDE IN ORDER TO ENSURE AN EFFECTIVE OPPORTUNITY OF BEING HEARD TO T HE ASSESSEE. WHILE SO HOLDING, IT MAY BE APPROPRIATE TO MAKE IT CLEAR THAT IN CASE THE ASSES SEE DOES NOT PARTICIPATE IN THE PROCEEDINGS FAIRLY AND ABUSES THE TRUST PROPOSED, THE LD. CIT ( EXEMPTIONS) WOULD BE AT LIBERTY TO PASS APPROPRIATE ORDER ON THE BASIS OF MATERIAL AVAILABL E ON RECORD. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD AUG,2017. SD/- SD/- (ANNAPURNA GUPTA) (DIVA SIN GH) ACCOUNTANT MEMBER JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.