M/s Amar Shaheed Baba Ajit Singh Jujhar Singh Memorial College, Ropar V. CIT(E), Chandigarh

ITA 148/CHANDI/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9576 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 11-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRESH SINGH
• Assessee Lawyers: N K SAINI ITP
• Keywords: Condonation of delay; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A CHANDIGARH !, ' # , $ % & ' ( , )* # BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 148/CHD/2019 ASSESSMENT YEAR : 2018-19 AMAR SHAHEED BABA AJIT SINGH JUJHAR SINGH MEMORIAL COLLEGE, VPO-BELA, CHAMKAUR SAHIB, ROOP NAGAR (PUNJAB). VS THE CIT (EXEMPTION), CHANDIGARH. PAN /TAN NO: AACTA2270N APPELLANT RESPONDENT ! ASSESSEE BY : SHRI N.K.SAINI, ITP ' ! REVENUE BY : SHRI AMRESH SINGH, CIT-DR # $ % DATE OF HEARING : 02.07.2019 &'() % D ATE OF PRONOUNCEMENT : 03.07.2019 )-/ ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSAILING THE CORRECTNESS OF THE ORDER DATED 27.11.2018 PASSED U/ S 80G(5)(VI) BY THE CIT(EXEMPTIONS) CHANDIGARH ON THE FOLLOWING GROUNDS : 1. THE ORDER PASSED BY THE LEARNED CIT (E) IS CONTRARY TO LAW & FACTS OF THE CASE. 2. THE LEARNED CIT (E) HAS ERRED IN LAW AND FACTS IN R EJECTING THE APPLICATION FOR GRANT OF APPROVAL SOUGHT UNDER SECTION 80G(5)(VI) O F IT ACT ON THE GROUNDS WHICH ARE ALIEN TO THE PROVISIONS OF SECTION 80G(5) OF THE AC T. 3. THE LEARNED CIT(E) HAS ERRED IN LAW AND FACTS IN NO T GRANTING THE APPROVAL UNDER SECTION 80G(5)(VI) ON THE GROUND THAT ASSESSEE HAS AT ITS DISPOSAL HUGE INVESTMENTS IN THE SHAPE OF FDR AND THERE IS NO RATIONALE IN SEEKI NG DONATIONS. 4. THE APPELLANT CRAVES LEAVE TO ADD TO OR AMEND ANY G ROUND OF APPEAL BEFORE THE DISPOSAL OF APPEAL 2. AT THE TIME OF HEARING, LD. AR HAD MOVED AN ADJO URNMENT APPLICATION, HOWEVER, IT WAS SUBSEQUENTLY WITHDRAWN. ADDRESSING THE DELAY OF 8 DAYS POINTED OUT BY THE REGISTRY, THE LD. AR RELYING UPO N THE CONDONATION OF DELAY APPLICATION DATED 10.02.2019 SUBMITTED THAT ON THE RECEIPT OF THE IMPUGNED ITA 148/CHD/2019 A.Y. 2018-19 PAGE 2 OF 3 ORDER ON 05.12.2018 IT HAD BEEN PLACED BEFORE THE M ANAGING COMMITTEE FOR APPROVING THE FILING OF THE APPEAL. REFERRING TO TH E APPLICATION, IT WAS SUBMITTED THAT ONE OF THE MEMBERS WAS OUT OF THE CO UNTRY, THEREFORE, THERE WAS A MINOR DELAY OF A FEW DAYS. IN THESE CIRCUMST ANCES, IT WAS HIS PRAYER THAT THE DELAY MAY BE CONDONED. 3. THE LD. CIT-DR MR. AMRESH SINGH CONSIDERING THE EXPLANATION STATED THAT HE HAS NO OBJECTION IF THE DELAY IS CONDONED. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. CONSIDERING THE EXPLANATION O FFERED ON BEHALF OF THE ASSESSEE, WE HOLD THAT THE CAUSE FOR THE DELAY STAN DS WELL ADDRESSED. WE HAVE TAKEN NOTE OF THE FACT THAT THE ASSESSEE BY FI LING THE APPEAL LATE HAS DERIVED NO ADVANTAGE NOR IF THE DELAY IS CONDONED A DISADVANTAGE IS VISITED UPON THE REVENUE AS NO VESTED RIGHT OF THE REVENUE STANDS DISTURBED IF THE APPEAL IS DECIDED ON MERITS. ACCORDINGLY, ACCEPTING THE EXPLANATION, THE DELAY IS CONDONED. ORDERED ACCORDINGLY. 5. THE LD. AR RELYING UPON THE GROUNDS RAISED SUBMI TTED THAT THE ISSUE MAY BE REMANDED BACK FOR A CONSIDERATION AFRESH TO THE CIT(E) AS THE REASONS FOR REJECTION OF THE ASSESSEE'S APPLICATION DO NOT HAVE ANY STATUTORY SANCTION. 6. THE LD. CIT-DR ON CONSIDERING THE IMPUGNED ORDER POSED NO OBJECTION. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE FACTS OF THE PRESENT C ASE, IT IS SEEN THAT THE CIT (EXEMPTION) HAS TAKEN NOTE OF THE FACT THAT THE APPLICANT SOCIETY IS RUNNING TWO COLLEGES, NAMELY THE PG COLLEGE WHICH WAS ESTAB LISHED IN 1975 AND PHARMACY COLLEGE IN 1993. THE PG COLLEGE IS AFFILIATED TO PUNJABI UNIVERSITY PATIALA WHEREAS PHARMACY COLLEGE IS AFFILIATED TO PTU JALANDHAR. THE PG COLLEGE IS A GOVERNMENT AIDED COLLEGE AND PHARMACY COLLEGE IS AN UNAIDED COLLEGE. THE APPLICANT SOCIETY HAS SUBMITTED ITS FINANCIAL STATEMENTS FOR LAST THREE YEARS. HOWEVER, WHILE DECIDING ON THE ALLOWABILITY OF TH E APPLICATION HE REJECTED THE SAME ON THE REASONING THAT SINCE TH E ASSESSEE SOCIETY HAD MAINTAINED INVESTMENTS IN FDRS, ACCORDINGLY, IN THE CIRCUMSTANCES, THE ITA 148/CHD/2019 A.Y. 2018-19 PAGE 3 OF 3 RATIONALE FOR SEEKING DONATIONS WAS QUESTIONED BY H IM. WE FIND ON GOING THROUGH THE ORDER THAT THE DECISION TO REJECT IS FO R IRRELEVANT REASONS. THE ALLOWABILITY OF APPLICATION U/S 80(G)(5) HAS TO BE BASED ON THE BASIS OF STATUTORY REQUIREMENTS AS SET OUT IN THE PROVISIONS OF THE ACT AND THE RULES MADE THEREUNDER. THE CIT (EXEMPTION) NECESSARILY I S REQUIRED TO DECIDE THE APPLICATION IN TERMS OF THE POSITION OF LAW AS CONS IDERED IN THE LIGHT OF THE STATUTORY PROVISIONS. SINCE THE SAID EXERCISE IS F OUND TO BE MISSING, THE IMPUGNED ORDER IS SET ASIDE BACK TO THE FILE OF THE CIT (EXEMPTION) CHANDIGARH WITH THE DIRECTION TO PASS A SPEAKING OR DER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUN ITY OF BEING HEARD. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD JULY,2019. SD/- SD/- ( $ % & ' ( ) ( ! ) (ANNAPURNA GUPTA) (DIVA SINGH) )* #/ ACCOUNTANT MEMBER ' #/ JUDICIAL MEMBER % $ '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR