Sri Syed Rehaman, PROP: M/s. B K Beedi Works, Harihar V. Income Tax Officer, Ward-3, Davangere

ITA 1366/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7037 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 15-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NOS.1365 AND 1366/BANG/2016 M/S. PRANATHI GRAMINA ABHIVRUDHI SAMSTHE, G. YERRISWAMY, S/O BASANNA, H. NO. 242, POST: BANAVIKALLU 583126, TQ: KUDLIGI, DIST: BELLARI. PAN : AACAP3738R VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), 6 TH FLOOR, UNITY BUILDING ANNEXE, P. KALINGA RAO ROAD, BENGALURU 560 027. APPELLANT RESPONDENT ASSESSEE BY : SHRI. G. VENKATESH, ADVOCATE REVENUE BY : MS. NEERA MALHOTRA, CIT-DR DATE OF HEARING : 18.12.2017 DATE OF PRONOUNCEMENT : 22.12 .2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THESE APPEALS ARE PREFERRED BY THE ASSESSEE AGAINS T THE ORDERS OF CIT DENYING THE REGISTRATION RECOGNITION UNDER SECTION 12AA AND 80G (5) OF THE IT ACT. 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSE L FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE CIT PASSED UNDER SECT ION 12AA(1)(B)(II) WITH THE SUBMISSION THAT CIT HAS NOT AFFORDED SUFFICIENT TIME AND OPPORTUNIT Y TO THE ASSESSEE TO FURNISH THE DETAILS SOUGHT BY HIM TO PROVE THE GENUINENESS OF THE TRUST AND ITS ACTIVITIES. HE HAS INVITED OUR ATTENTION THAT CIT HAD FIXED THE HEARING ON 25.05.2 016 AT 11.45 AM. THE ASSESSEE FILED CERTAIN DETAILS. HOWEVER, THE AMENDED COPY OF TRUS T DEED COULD NOT BE PRODUCED AND ASSESSEE SOUGHT TIME TO PRODUCE THE SAME. BUT THE CIT INSTE AD OF GIVING TIME, HAD REJECTED THE APPLICATION FOR REGISTRATION AND ON ACCOUNT OF REJE CTION OF REGISTRATION UNDER SECTION 12A, THE ITA NOS.1365 AND 1366/BANG/2016 PAGE 2 OF 3 RECOGNITION UNDER SECTION 80G FILED BY THE ASSESSEE WAS ALSO REJECTED, HAVING OBSERVED THAT A DESIGNATED OFFICER IS REQUIRED TO EXAMINE THE CAUSE WITH A VIEW TO OBTAIN THE SATISFACTION OF THE OBJECT OF THE TRUST. HE FURTHER OBSERVED THAT IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE TRUST OR ITS ACTIVITIES. THE LEARNED COUNSEL F OR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS REQUIRED TO FILE ALL THE RELEVANT EVIDENCES AND PROVE THE GENUINENESS OF THE TRUST AND ITS ACTIVITIES AND IT IS FOR THE CIT TO EXAMINE HIMSELF OR TO CALL FOR REPORT FROM HIS SUBORDINATES. BUT HE CANNOT DENY THE REGISTRATION MERELY ON THE G ROUND THAT THE DESIGNATED OFFICER IS REQUIRED TO EXAMINE THE GENUINENESS OF TRUST AND IT S ACTIVITIES. WHENEVER THE REGISTRATION IS REQUIRED IT IS FOR THE AUTHORITIES CONCERNED TO EXA MINE THE OBJECTS AND THE ACTIVITIES OF THE TRUST. THEREFORE, THE CIT MAY BE DIRECTED TO GRANT REGISTRATION. 3. THE LEARNED DR PLACED RELIANCE UPON THE ORDER OF THE CIT. 4. HAVING CAREFULLY EXAMINED THE ORDERS OF THE AUTH ORITIES BELOW, WE FIND THAT CIT HAS REJECTED THE REGISTRATION HAVING OBSERVED THAT DESI GNATED OFFICER IS REQUIRED TO EXAMINE THE GENUINENESS OF TRUST AND ITS ACTIVITIES. SINCE IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS OF TRUST AND ITS ACTIVITIES, HE REJECTED THE REGISTRAT ION. THE ACTION OF THE CIT DOES NOT APPEAR TO US TO BE REASONABLE. WE ACCORDINGLY SET ASIDE THE ORDER OF THE CIT IN BOTH THE APPEALS AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO RE-EXAMINE THE CLAIM OF REGISTRATION OF TRUST AND RECOGNITION OF TRUST UNDER SECTION 80G(5) ALSO BY MAKING NECESSARY ENQUIRIES EITHER BY HIMSELF OR THROUGH HIS SUBORDINATES. ACCORDINGLY, THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOW ED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 22 ND DECEMBER, 2017. SD/- SD/- ( INTURI RAMA RAO ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE. DATED: 22 ND DECEMBER, 2017. /NS/* ITA NOS.1365 AND 1366/BANG/2016 PAGE 3 OF 3 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE.