Nangten Menlang Socio Buddhist Medical Research Chariitable Trust , Bangalore V. The Commissioner of Income TAx (Exemptions) , Bangalore

ITA 1483/BANG/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0893 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-12-2019
• Assessment Year: 2017-2018
• Appeal Filed On: 23-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP KUMAR BENGALURU
• Assessee Lawyers: M P MOHAMED
• Keywords: Charitable institution; Opportunity of being heard; Set aside
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI B R BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER IT A NO. 1483/BANG/2017 ASSESSMENT YEAR: N.A. NANGTEN MENLANG SOCIO BUDHIST MEDICAL RESEARCH CHARITABLE TRUST, NO.7, FIRST FLOOR, 3 RD CROSS, NISSAN HOUSE, PALM GROVE ROAD, BANGALORE 560 047. PAN: AACTM 2780N VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE. APPELLANT RESPONDENT (S) APPELLANT BY : SHRI M.P. MOHAMED, ADVOCAT E RESPONDENT BY : SHRI PRADEEP KUMAR, CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 19 .12 .2019 DATE OF PRONOUNCEMENT : 20 .1 2 .2019 O R D E R PER PAVAN KUMAR GADALE, JUDICIAL MEMBER THE ASSESSEE HAS FILED THIS APPEAL AGAINST TH E ORDER U/S. 12AA(1)(B)(II) OF THE INCOME-TAX ACT, 1961 [THE ACT ] DATED 27.04.2017. 2. THE ASSESSEE HAS FILED AN APPLICATION FOR REGIST RATION U/S. 12A OF THE ACT ON 25.10.2016 AND A LETTER WAS ISSUED BY THE OF FICE OF THE CIT(EXEMPTIONS) ON 18.11.2016 TO SUBMIT THE DETAILS AND CLARIFICATION ON OR BEFORE 2.3.2017. WHEREAS THE ASSESSEE FILED CERTAI N DETAILS ON 8.12.2016 AND THE CIT(E) FOUND THEY ARE INCOMPLETE AND FURTHE R CLARIFICATIONS ARE ITA NOS.1866 & 1865/B/2017 PAGE 2 OF 3 REQUIRED. ANOTHER LETTER WAS ISSUED ON 2.3.2017 WI TH A DIRECTION TO COMPLY BY 13.3.2017. SINCE THE ASSESSEE DID NOT COMPLY WI TH THE DIRECTION, THE CIT(E) CONSIDERING THE MATERIAL ON RECORD WAS OF TH E OPINION THAT THE ACTIVITIES OF THE TRUST ARE NOT CHARITABLE IN NATUR E AND THE ASSESSEE WAS ALSO NOT INTERESTED IN PROSECUTING THE CASE, HE THEREFOR E PASSED THE ORDER ON 27.4.2017 REJECTING THE APPLICATION FOR REGISTRATIO N U/S. 12A. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED THE APPEAL BEFORE THE TRIBUNAL. 3. AT THE TIME OF HEARING, THE LD. AR SUBMITTED THA T THE ASSESSEE COULD NOT SUBMIT THE INFORMATION IN TIME AND HAS FILED IN FORMATION BEFORE THE CIT(E) ON THE SUBSEQUENT DATE AND THE CIT(E) HAS RE JECTED THE APPLICATION FOR GRANT OF REGISTRATION U/S. 12A OF THE ACT. THE CONTENTION OF THE LD. AR WAS THAT THE ACTIVITIES ARE GENUINE AND THE ASSESSE E HAS COMPLIED WITH THE CONDITION REQUISITE FOR GRANT OF REGISTRATION U/S. 12A AND PRAYED FOR AN OPPORTUNITY BEFORE THE CIT(E) TO SUBSTANTIATE WITH MATERIAL EVIDENCE OF THE NATURE OF ACTIVITIES AND FINANCIAL STATEMENTS AS CA LLED FOR BY THE CIT(E). CONTRA, THE LD. DR SUPPORTED THE ORDER OF CIT(E). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ONLY ARGUMENT ENVISAGED BY THE LD. AR IS WITH RESPECT TO GRANT OF OPPORTUNITY BEFORE THE CIT(E) AS HE HAS PASSED A N ORDER FOR NON- PROSECUTION BY THE ASSESSEE. WE FIND THAT THE CIT( E) HAD CALLED FOR CERTAIN DETAILS ON OR BEFORE 2.3.2017 AND THE DETAILS FURNI SHED BY THE ASSESSEE WERE FOUND TO BE INCOMPLETE. THE CIT(E) GRANTED FU RTHER TIME UPTO 13.3.2017. THE ASSESSEE COULD NOT COMPLY WITH THE DIRECTION FOR VARIOUS REASONS AND THE LD. AR SUBMITTED THAT ANOTHER OPPOR TUNITY BE GRANTED BEFORE THE CIT(E) TO COMPLY WITH THE DIRECTIONS. 5. CONSIDERING THE FACTS AND CIRCUMSTANCES AND THE NATURE OF ACTIVITIES, WE ARE OF THE VIEW THAT ONE MORE OPPORTUNITY IS TO BE GRANTED TO THE ASSESSEE BEFORE CIT(E) TO SUBSTANTIATE ITS CASE WIT H MATERIAL EVIDENCE. ITA NOS.1866 & 1865/B/2017 PAGE 3 OF 3 ACCORDINGLY WE SET ASIDE THE ORDER DATED 27.4.2017 OF THE CIT(E) AND RESTORE THE ENTIRE DISPUTED ISSUE IN RESPECT OF GRA NT OF REGISTRATION U/S. 12A TO THE FILE OF CIT(E) FOR FRESH CONSIDERATION WITH ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO COMPLY WITH THE DIRE CTIONS AND TO PASS A SPEAKING ORDER. THE ASSESSEE IS ALSO DIRECTED TO C OOPERATE IN THE PROCEEDINGS BEFORE THE CIT(E). 6. IN THE RESULT, THE APPEAL BY THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF DECEMBER, 2019. SD/- SD/- ( B R BASKARAN ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 20 TH DECEMBER, 2019. / DESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FIL E BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.