Sushila Shyama Charan Saha Foundation, Kolkata V. CIT(E), Kolkata, Kolkata

ITA 1399/KOL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1305 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 12-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G MALLIKARJUNA
• Section: 80G; 12AA

Judgement Text

1 ITA NO.1399/KOL/2017 SUSHILA SHYAMA CHARAN SAHA FOUNDATION AY- 2017-18 , A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA ( ) BEFORE . . , /AND . . , ) [BEFORE SHRI P. M. JAGTAP, AM & SHRI A. T. VARKEY, JM] I.T.A. NO. 1399/KOL/2017 ASSESSMENT YEAR: 2017-18 SUSHILA SHYAMA CHARAN SAHA FOUNDATION (PAN: AARTS6421J) VS. COMMISSIONER OF INCOME-TAX (E), KOL. APPELLANT RESPONDENT DATE OF HEARING 20.12.2017 DATE OF PRONOUNCEMENT 07.03.2018 FOR THE APPELLANT SHRI ANIL KOCHAR, ADVOCATE FOR THE RESPONDENT SHRI G. MALLIKARJUNA, CIT, DR ORDER PER SHRI A.T.VARKEY, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE FOUNDAT ION AGAINST THE ACTION OF LD. CIT(E), KOLKATA NOT GRANTING APPROVAL U/S. 80G OF T HE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE ORDER DATED 04.05.20 17. 2. THE ASSESSEE FOUNDATION CAME INTO EXISTENCE VID E DEED OF TRUST EXECUTED ON 09.09.2016 AND FILED AN APPLICATION IN FORM 10G FOR APPROVAL OF EXEMPTION U/S. 80G OF THE ACT ON 04.11.2016. THE LD. CIT(E) HAS OBSERVED THA T THE LD. AR APPEARED AND FURNISHED DOCUMENTS AS PER REQUISITION AND THAT DURING HEARIN G DATED 11.04.2017 SPECIFIC QUESTIONS WERE ASKED REGARDING WHY THE TRUST NEEDS APPROVAL U /S. 80G OF THE ACT AND THEN THE LD. CIT(E) OBSERVED THAT THE CASE WAS DISCUSSED WITH HI M AND AFTER HEARING THE CASE HE WAS OF THE VIEW THAT THIS IS NOT A FIT CASE FOR APPROVAL U /S. 80G OF THE ACT. THE AFORESAID FACT EMANATING FROM THE IMPUGNED ORDER, WHICH LD. CIT(E) HAS OBSERVED IS REPRODUCED AS UNDER: SHRI ANIL KOCHAR, A/R, APPEARED FROM TIME TO TIME AND FURNISHED DOCUMENTS AS PER REQUISITIONS. DURING HEARING DATED 11.04.2017, SPECIFIC QUESTIONS WERE ASKED REGARDING WHY THE TRUST NEEDS 2 ITA NO.1399/KOL/2017 SUSHILA SHYAMA CHARAN SAHA FOUNDATION AY- 2017-18 APPROVAL U/S. 80G. THE CASE WAS ALSO DISCUSSED WIT H HIM. AFTER THE HEARING AND DISCUSSIONS WITH HIM I AM OF THE VIEW THAT THIS IS NOT A FIT CASE FO R APPROVAL U/S. 80G OF I. T. ACT, 1961. THEREFORE, THE APPLICATION FOR APPROVAL U/S. 80G IS REJECTED. THIS IS ALSO HELD THAT, THE APPLICANT TRUST IS NOT APPROVED FOR EXEMPTION TO DONATIONS U/ S. 80G OF THE INCOME-TAX ACT, 1961. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THR OUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. THE MAIN GRIEVANCE OF THE ASSESSEE IS THAT T HE APPLICATION FOR APPROVAL U/S. 80G OF THE ACT HAS BEEN REJECTED BY THE LD. CIT(E) WITHOUT ASS IGNING ANY REASON. AFTER PERUSAL OF THE ORDER, WE FIND THAT IT IS CRYPTIC IN NATURE AND HAS NOT SPELT OUT ANY REASON FOR REJECTING THE APPLICATION FOR APPROVAL U/S. 80G EXEMPTION, WHEN T HE ASSESSEE IS ENJOYING 12AA REGISTRATION. IT HAS TO BE REMEMBERED THAT THE REA SON IS THE SOUL OF A JUDICIAL OR QUASI JUDICIAL ORDER. THE IMPUGNED ORDER LACKS ANY REASON WHATSOE VER DISCERNIBLE FROM THE SAME WHICH MAKES THE ORDER BAD IN LAW FOR ARBITRARINESS ON THE PART OF THE LD. CIT WHILE ADJUDICATING THE APPLICATION FOR APPROVAL U/S. 80G OF THE ACT. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT(E) AND REMAND THE MATTER BACK TO THE FILE OF TH E LD. CIT(E) TO PASS A SPEAKING ORDER IN ACCORDANCE TO LAW AFTER GIVING REASONABLE OPPORTUNI TY OF BEING HEARD TO THE ASSESSEE. APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPO SES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 07.03.201 8 SD/- SD/- (P. M. JAGTAP) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 7 TH MARCH, 2018 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT SUSHILA SHYAMA CHARAN SAHA FOUNDATIO N, C/O, S. L. KOCHAR, ADVOCATE, 86, CANNING STREET, KOLKATA-1. 2 RESPONDENT CIT(E), KOLKATA 3. THE CIT(A) KOLKATA. 4. 5. CIT KOLKATA DR, ITAT, KOLKATA. / TRUE COPY, BY ORDER, SR. PVT. SECRETARY