Modern Education Trust, Vapi V. The CIT., Valsad

ITA 142/AHD/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8711 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 18-03-2010
• Assessment Year: misc
• Appeal Filed On: 13-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA
• Assessee Lawyers: S N L AGARWAL
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI T.K.SHARMA, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER DATE OF HEARING:18/03/2010 DRAFTED ON: 18/03/20 10 ITA NO.142/AHD/2009 ASSESSMENT YEAR : MODERN EDUCATION TRUST, INRAN NAGAR, VAPI VS. COMMISSIONER OF INCOME TAX, SURYAPRAKASH CHAMBER, DHARAMPUR ROAD, VALSAD. PAN/GIR NO. : AABTM 1148 C (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI S.N.L.AGARWAL, A.R. RESPONDENT BY: SHRI C.K.MISHRA SR. D.R. O R D E R PER N.S.SAINI , ACCOUNTANT MEMBER :- THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX, VALSAD, DATED 2 5.11.2008. 2. THE GROUND NOS.1 AND 2 OF THE APPEAL READS AS UN DER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E LD. CIT ERRED IN REJECTING THE APPLICATION OF THE TRUST FOR APPROVAL U/S.80G(5) WITHOUT APPLICATION OF MIND TO THE FACTS AND MERITS OF THE CASE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT ERRED IN REJECTING THE APPLICATION OF THE TRUST FOR APPROVAL U/S.80G(5) BY AN ORDER PASSED IN CONTRAVENTION OF R ULE 11AA(6) AFTER SIX MONTHS FROM THE DATE ON WHICH THE APPLICATION WAS MADE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A CHARITABLE TRUST REGISTERED UNDER SECTION 12A OF INCOME TAX ACT, 196 1 ON 26.06.1991. IT WAS ITA 142/A/2009 - 2 - GRANTED APPROVAL UNDER SECTION 80(5) FOR THE PERIOD 1.04.2005 TO 31.03.2008 BY ORDER OF COMMISSIONER, VALSAD DATED 24.10.2005. THE SAID TRUST FILED APPLICATION IN FORM NO.10G ON 23.04.2008 BEFORE THE CIT, VALSAD FOR CONTINUATION OF APPROVAL OF THE TRUST UNDER SECTION 80G(5) WHICH WAS REJECTED BY THE CIT, VALSAD ON THE GROUND THAT IN R ESPONSE TO THE SHOW CAUSE NOTICE, NONE APPEARED ON THE DATE OF HEARING ON 17. 11.2008 AND FILED THE DETAILS REGARDING NATURE AND PROOF OF ACTIVITIES DO NE TILL DATE OF HEARING, COPY OF ACCOUNTS TILL THE DATE OF HEARING. 4. THE LD. A.R. SUBMITTED THAT THE ISSUE IS COVERED BY THE DECISION OF AHMEDABAD BENCH OF THE TRIBUNAL, IN THE CASE OF VAP I BENGALI CHARITABLE TRUST VS. CIT IN ITA NO.824/AHD/2009 ORDER DATED 5. 06.2007. 5. THE LD. D.R. SUPPORTED THE ORDER OF THE LD. CIT. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE FAILED TO FILE TH E NECESSARY DETAILS REQUIRED BY THE LD. CIT BEFORE 17.11.2008, THEREFORE, THE LD . CIT REJECTED THE APPLICATION FOR GRANT OF APPROVAL UNDER SECTION 80G OF THE ACT. IN OUR CONSIDERED OPINION, THE LD. CIT, SHOULD HAVE ALLOWE D ONE MORE OPPORTUNITY TO THE ASSESSEE TO FILE THE DETAILS BEFORE REJECTIN G THE APPLICATION OF THE ASSESSEE. FURTHER, WE ALSO OBSERVE THAT THE DECISIO N OF THE TRIBUNAL IN THE CASE OF VAPI BENGALI CHARITABLE TRUST(SUPRA) WAS NO T FILED BEFORE THE LD. CIT, THEREFORE, HE DID NOT HAVE THE OCCASION TO CON SIDER THE SAME WHILE DECIDING THE APPLICATION OF THE ASSESSEE. IN THE AB OVE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE CONSIDERED OPINION THAT THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE LD. CIT FOR DECIDING THE ISSUE AFRESH AFTER TAKING INTO CONSIDERATION THE ABOVE CI TED DECISION OF THE TRIBUNAL AND THE DETAILS AS REQUIRED BY HIM AND THEN DECIDE THE ISSUE AS PER LAW. THE ITA 142/A/2009 - 2 - ASSESSEE IS ALSO DIRECTED TO FILE THE NECESSARY DET AILS WHEN CALLED UPON HIM BY THE LD. CIT TO DO SO. THE LD. CIT SHALL ALLOW R EASONABLE OPPORTUNITY TO THE ASSESSEE BEFORE DECIDING THE ISSUE AFRESH. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 26/03/2010. SD/- SD/- ( T.K. SHARMA ) ( N.S. SAINI ) JUDICIAL MEMBER A CCOUNTANT MEMBER AHMEDABAD; DATED 26/03/2010 PARAS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS) 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD