Sri. Basavangauru Topavana Trust, Davangere V. CIT, Bangalore

ITA 1504/BANG/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0318 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-06-2016
• Assessment Year: misc
• Appeal Filed On: 28-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR CITIIIDR
• Assessee Lawyers: S RAMASUBRAMANIAN
• Keywords: Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.1504/BANG/2015 ASSESSMENT YEAR : N.A. SRI BASAVAGURU TAPOVANA TRUST, NO.814, BASAVESHWARANAGARA, SIRAMAGONDANAHALLI, DAVANGERE 577 005. PAN: AAPTS 2984Q VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI S. RAMASUBRAMANIAN, CA RESPONDENT BY : SHRI SANJAY KUMAR, CIT-III(DR) DATE OF HEARING : 16.06.2016 DATE OF PRONOUNCEMENT : 24.06.2016 O R D E R PER ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER THIS APPEAL IS BY THE ASSESSEE TRUST AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE [HEREINAFTER REFERRED TO AS THE CIT] DENYING THE ASSESSEE REGISTRATION U/S. 12A OF THE ACT. 2. THE ASSESSEE TRUST FILED APPLICATION FOR REGIST RATION U/S 12A OF THE ACT ON 25-05-2015. AS THERE WERE SOME DISCREPANCIE S, A LETTER DATED ITA NO.1504/BANG/2015 PAGE 2 OF 5 16.11.2015 WAS ISSUED, BY THE CIT CALLING FOR CERTA IN DETAILS/CLARIFICATIONS SUCH AS:- 1. LIST OF TRUSTEES/GOVERNING BODY MEMBERS WITH A) NAME; B) ADDRESS; C) PHONE NO.; D) EDUCATIONAL QUALIFICATION; E) DETA ILS OF OCCUPATION/EMPLOYMENT DURING THE LAST TWO YEARS FRO M DATE OF APPLICATION; F) DETAILS OF ANY OTHER TRUST/SOCIETY ASSOCIATED WITH AS TRUSTEE/MANAGING COMMITTEE MEMBER. 2. WHETHER THE OBJECT AND ACTIVITIES OF THE TRUST/I NSTITUTION IS CHARITABLE/RELIGIOUS/OTHERS. IF CHARITABLE PLEASE E XPLAIN HOW THE OBJECTS AND ACTIVITIES OF THE TRUST ARE COVERED WIT HIN THE MEANING OF SECTION 2(15)/PROVISO TO SECTION 2(15) OF THE INCOM E-TAX ACT 1961. 3. DETAILED NOTE ON ACTIVITIES OF THE TRUST/INSTITU TION SINCE INCEPTION OR FOR THE LATEST THREE YEARS ALONG WITH THIRD PARTY EVIDE NCE IN THE FORM OF BROCHURES, PHOTOS ETC. 4. PROVISIONAL ACCOUNT OF RECEIPT & PAYMENT A/C , INCOME & EXPENDITURE A/ C, BALANCE SHEET FROM 1/4/2015 TO TILL DATE AND FINANCIAL STATEMENT FOR THE A.Y. 2014-15. 5. DETAILS OF OCCUPATION OF THE TRUST/SOCIETY PREMI SES (RENTAL/LEASE AGREEMENT) 6. DETAILS OF BANK ACCOUNTS OPERATED BY THE TRUST ( BANK BRANCH AND A LC NO.) AND COPY OF THE BANK EXTRACT FOR TWO FINANCIAL YEARS. 3. THE ASSESSEE TRUST WAS REQUESTED TO COMPLY BY 20 /11/2015, BUT THERE HAS BEEN NO COMPLIANCE FROM THE ASSESSEE. 4. AT THE STAGE OF REGISTRATION U/S. 12AA, THE COMM ISSIONER ON RECEIPT OF AN APPLICATION FOR REGISTRATION OF A TRUST OR IN STITUTION HAS TO SATISFY HIMSELF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION AND T HE GENUINENESS OF ITS ACTIVITIES. THE CIT NOTED THAT IN THE ABSENCE OF D ETAILS/DOCUMENTS SOUGHT, IT WAS NOT POSSIBLE TO ASCERTAIN THE GENUINENESS OF THE OBJECTS AND THE ITA NO.1504/BANG/2015 PAGE 3 OF 5 ACTIVITIES OF THE TRUST. THE CIT CONCLUDED THAT TH E APPLICANT IS NOT INTERESTED IN PROSECUTION OF THE APPLICATION FOR REGISTRATION U/S. 12A AND THEREFORE DESERVES TO BE DISMISSED ON THIS ACCOUNT. HE OBSER VED THAT THE LAW ASSISTS THOSE WHO ARE VIGILANT AND NOT THOSE WHO SL EEP OVER THEIR RIGHTS. THIS PRINCIPLE IS EMBEDDED IN THE WELL-KNOWN DICTUM VIGILANTUS NON DORMANTIBUSJURA-SUBVENIUNT ACCORDING TO THE CIT, COURTS IN SEVERAL CASES HAVE UPHELD THIS DICTUM. LACK OF DILIGENCE AND FOLLOW UP ON THE PART OF THE ASSESSEE HAS BEEN FROWNED UPON BY VARIOUS COURTS IN THE DECISIONS AS UNDER:- I) 106 ITR 653 (SC), II) 118 ITR 161 (SC) III) 286 ITR 688 (MP) (IV) 257 ITR 301 (DELHI) & (V) 130 TAXMAN 61 (MAD) 5. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE C ASE AS DETAILED ABOVE, THE APPLICATION FOR REGISTRATION U/S 12A WAS REJECTED BY THE CIT. 6. AGGRIEVED, THE ASSESSEE-TRUST IS IN APPEAL BEFOR E US. THE LD. COUNSEL FOR THE ASSESSEE PRODUCED BEFORE US THE FOL LOWING DOCUMENTS:- (A) LETTER DATED 27.08.2015 REGARDING FURNISHING O F PARTICULARS AS REQUIRED BY ITO(EXEMPTIONS). (B) LETTER DATED 15.10.2015 IN REPLY TO LETTER FROM ITO (EXEMPTIONS) DATED 01.10.2015. (C) LETTER DATED 21.11.2015 FURNISHING DETAILS SOUG HT FOR BY THE ITO VIDE LETTER DATED 16.11.2015. ITA NO.1504/BANG/2015 PAGE 4 OF 5 7. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAD BEEN RESPONDING TO THE LETTERS ISSUED BY THE DEPART MENT AND HAS FURNISHED ALL THE DETAILS. HE ALSO STATED THAT THE ASSESSEE HAD COMPLIED WITH FILING OF ALL THE FORMS AS PER STATUTORY REQUIREMENT AND PLEA DED FOR ONE MORE OPPORTUNITY TO APPEAR BEFORE THE CIT(EXEMPTIONS) IN ORDER TO FURNISH ALL THE REQUIREMENTS TO THE SATISFACTION OF THE CIT(E). 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE DEEM IT FIT TO RESTORE THE MATTER BACK TO THE CIT(E) FOR FRESH ADJUDICATION. THE ASSESSEE TRUST SHALL PRODUCE ALL THE RELEVANT DETAILS BEFORE THE CIT(E) TO DECIDE THE ISSUE WITH RESPECT TO GRANT OF REGISTRATION OF THE TRUST U/S. 12AA OF THE ACT. ACCORDINGLY, THE ISSUE IS RESTORED BACK TO THE FILE OF CIT(E), WHO SHALL DECIDE THE ISSUE AFRESH AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL BY THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 24 TH DAY OF JUNE, 2016. SD/- SD/- ( INTURI RAMA RAO ) (ASHA VIJAYARAGHAVAN ) ACCOUNTANT MEMBER JUDICIAL M EMBER BANGALORE, DATED, THE 24 TH JUNE, 2016. /D S/ ITA NO.1504/BANG/2015 PAGE 5 OF 5 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.