The Bengal Urology Trust, Kolkata V. CIT, (Exemptions), Kolkata, Kolkata

ITA 1453/KOL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4546 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 15-09-2016
• Assessment Year: misc
• Appeal Filed On: 09-12-2015
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Non compliance
• Section: 12AA; 10B

Judgement Text

ITA NO.1453/KOL/15 THE BENGAL UROLOGY TRUST 1 IN THE INCOME TAX APPELLATE TRIBUNAL,A BE NCH, KOLKATA BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 1453/KOL/2015 THE BENGAL UROLOGY TRUST VS. C.I.T(EXEMPTION), KOLKATA PAN: AACTT 5651Q (APPELLANT) (RESPONDENT) APPEARANCES BY: NONE APPEARED ON BEHALF OF THE ASSE SSEE SHRI D.MALLIKARJUNA, CIT, SR. D.R FOR TH E REVENUE DATE OF CONCLUDING THE HEARING : 15-09- 2016 DATE OF PRONOUNCING THE ORDER : 16-09-2016 O R D E R SHRI S.S. VISWANETHRA RAVI, JM :- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 16-10-2015 PASSED BY THE COMMISSIONER OF INCO ME TAX(EXEMPTION), KOLKATA, WHEREIN HE REJECTED THE A PPLICATION FOR GRANT OF REGISTRATION U/S. 12AA OF THE I.T ACT, 1961. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE CLAI MS TO BE A CHARITABLE TRUST INCORPORATED THOUGH DEED OF TRUST EXECUTED ON 9 TH APRIL 2015 FOR CHARITABLE PURPOSES. THE ASSESSEE T RUST FILED AN APPLICATION IN FORM 10A ON 13 TH JULY 2015 FOR SEEKING/ GRANTING OF REGISTRATION U/S. 12AA OF THE ACT. IN P URSUANT TO IT, THE CIT(E) ISSUED NOTICE DATED 27/28-08-2015 U/S. 1 2AA(1)(A) FIXING THE DATE OF HEARING ON 07-10-2015 TO THE ASS ESSEE. THE ITA NO.1453/KOL/15 THE BENGAL UROLOGY TRUST 2 CIT(E) OBSERVED THAT THERE WAS NO COMPLIANCE TO SUC H NOTICE ISSUED. ACCORDINGLY, HE REJECTED THE APPLICATION D ATED 13-07- 2015 OF THE ASSESSEE FILED FOR GRANT OF REGISTRATIO N. 3. BEFORE US THE ASSESSEE CONTENDS THAT THE CIT-E REJECTED THE APPLICATION THAT ON ACCOUNT OF NON COMPLIANCE B Y THE AUTHORISED REPRESENTATIVE IN REPRESENTING THE ASSES SEES CASE AND DUE TO THE NEGLIGENCE AND LAXITY OF THE AUTHORI SED REPRESENTATIVE OF THE ASSESSEE TRUST COULD NOT REPR ESENT ITS CASE BEFORE THE CIT-E. ON SUCH FAILURE TO DISCHARGE THE DUTIES PROPERLY BY THE AUTHORISED REPRESENTATIVE OF THE AS SESSEE THE CIT-E REJECTED THE APPLICATION FILED BY THE ASSESSE E FOR SEEKING/GRANTING OF REGISTRATION U/S. 12AA OF THE A CT WITHOUT BEING HEARD. THE ASSESSEE FURTHER CONTENDS THAT AN OPPORTUNITY MAY BE GRANTED TO THE ASSESSEE TO REPRESENT ITS CAS E PROPERLY BEFORE THE CIT(E) UNLESS THIS TRIBUNAL INTERFERES T HAT THE ASSESSEE WILL SUFFER IRREPARABLE LOSS AND DAMAGE. T HE LD.AR FILED THE DOCUMENTS BY WAY OF PAPER BOOK, WHICH ARE AVAILABLE/PLACED AT PAGES 1-37 OF THE PAPER BOOK AN D SUBMITTED THAT THE SAME WERE AVAILABLE BEFORE CIT-E AND ARE N ECESSARY FOR GRANT OF REGISTRATION U/S. 12AA OF THE ACT. THE CIT(E) WITHOUT CONSIDERING THESE DOCUMENTS AND FOR NON COM PLIANCE OF THE NOTICE BY THE ASSESSEE PASSED THE IMPUGNED ORDE R BY REJECTING THE SAME. FINALLY, THE ASSESSEE PRAYED BE FORE US TO REMAND THE CASE TO THE FILE OF THE CIT(E) FOR FRESH ADJUDICATION. THE LD. AR SOUGHT TO SET ASIDE THE IMPUGNED ORDER O F THE CIT(E) DATED 16-10-2015 AND RESTORE THE MATTER TO HIM BY G IVING AN OPPORTUNITY TO ASSESSEE TO REPRESENT ITS CASE PROPE RLY. 4. THE LD.DR SUBMITS THAT INSPITE OF RECEIPT OF NOT ICE BY THE ASSESSEE, THE ASSESSEE COULD NOT TAKE STEPS TO APPE AR BEFORE ITA NO.1453/KOL/15 THE BENGAL UROLOGY TRUST 3 THE CIT(E) TO REPRESENT ITS CASE PROPERLY AND THERE FORE, THE ORDER PASSED BY THE CIT(E) IS WELL WITHIN IN ACCORD ANCE WITH THE LAW. HE RELIED ON THE IMPUGNED ORDER OF THE CIT(E) IN DOING SO. 5. HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL EVIDENCE AVAILABLE ON RECORD INCLUDING THE DETAILS ENCLOSED IN THE PAPER BOOK. WE FIND FROM THE IMPUGNED ORDER, THE CIT(E) HAD ISSUED NOTICE ON 27/28-08-2015 FIXING TH E CASE FOR HEARING ON 07-10-2015. BUT THERE WAS NON COMPLI ANCE ON BEHALF OF THE ASSESSEE ON SUCH DATE OF HEARING. BUT THE CONDITIONS AS CONTEMPLATED IN S.12AA OF THE ACT FOR PROCEDURE OF REGISTRATION ARE THAT THE CIT(E) SHALL CALL FOR DOCUMENTS OR ANY OTHER INFORMATION FROM THE TRUST O R INSTITUTION TO ARRIVE AT THE SATISFACTION ABOUT THE GENUINENESS OF THE ACTIVITIES OF SUCH TRUST OR INST ITUTION. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THE REQUIRED DOCUMENTS IN THIS REGARD INCLUDING THE TRUST DEED W ERE FILED BY THE ASSESSEE. A PERUSAL OF THE IMPUGNED OR DER OF THE LD. CIT(E), HOWEVER, SHOWS THAT HE HAS NEITHER TAKEN INTO CONSIDERATION THE SAME NOR OFFERED PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESS EE BEFORE REJECTING THE APPLICATION OF THE ASSESSEE FOR REGI STRATION U/S. 12AA. WE, THEREFORE, CONSIDER IT FAIR AND PROP ER AND IN THE INTEREST OF JUSTICE, SET ASIDE THE IMPUGNED ORD ER OF THE CIT(E) AND REMAND THE MATTER TO HIS FILE FOR FRESH ADJUDICATION BY AFFORDING AN OPPORTUNITY TO THE ASS ESSEE TO FILE THE REQUISITE EVIDENCES, IF ANY, THAT MAY BE R EQUIRED ITA NO.1453/KOL/15 THE BENGAL UROLOGY TRUST 4 FOR GRANT OF REGISTRATION. THEREFORE, THE GROUNDS R AISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH SEPTEMBER, 2016 SD/- SD/- P.M. JAGTAP S.S.VIS WANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16/09 /2016 1. THE APPELLANT/ASSESSEE: M/S. BENGAL UROLOGY TRUST C/O D J SHAH & CO. KALYAN BHAVAN, 2 ELGIN ROAD, KOLKATA-20. 2 . THE RESPONDENT/DEPARTMENT: O/O THE CIT (EXEMPTIONS), KOL 10B MIDDLETON ROW, KOLKATA-71. 3. CIT 4. CIT(A) 5. THE DEPARTMENTAL REPRESENTATIVE 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGIS TRAR ** PRADIP SPS INCOME TAX APPELLATE TRIBUNAL KOLKATA BENC HES, KOLKATA COPY OF THE ORDER FORWARDED TO: -