SWABHIMAN ALPSANKYANK BAHUUDESHIYA VIKAS SANSTHA, Akola V. CIT-I, Nagpur

ITA 155/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1709 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 02-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: SACHIN N JAISWAL
• Keywords: Opportunity of being heard; Principle of natural justice; Non compliance
• Section: 80G; 12A; 12AA

Judgement Text

1 ITA NO. 155/NAG/2014 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 155/NAG/2014 SWABHIMAN ALPSANKYANK BAHUUDESHIYA COMMISSIONER OF VIKAS SANSTHA, V/S. INCOME TAX - I, C/O AARIFODDIN JAMMINODDIN, NAGPUR . SADIK NAGAR, WARD NO.III, BARSHITAKLI, TQ. BARSHITAKLI, DIST. AKOLA. PAN AAHAS9119G APPELLANT. RESPONDENT. APPELLANT BY : SHRI SACHIN N. JAISWAL. RESPONDENT BY : SHRI NARENDRA KANE. DATE OF HEARING : 02 - 07 - 2015 DATE OF PRONOUNCEMENT : 28 TH AUGUST, 2015 O R D E R PER SHAMIM YAHYA, A.M. . THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX - I, NAGPUR DATED 31 - 01 - 2014 BY WAY OF WHICH THE LEARNED CIT HAS REJECTED THE TRUSTS APPLICATION FOR APPROVAL U/S 80G OF THE I.T. ACT. GROUNDS OF APPEAL READ AS UNDER : 1. HONBLE COMMISSIONER OF INCOME TAX - I, NAGPUR ERRED IN REJECTING APPLICATION TO GRANT APPROVAL U/S 80G OF INCOME TAX ACT, 1961. 2 ITA NO. 155/NAG/2014 2. HONBLE COMMISSIONER OF INCOME TAX - I, NAGPUR ERRED ON CONCLUSION ABOUT GENUINENESS OF TRUST. 3. HONBLE COMMISSIONER OF INCOME TAX, NAGPUR DISMISSED THE APPLICATION FOR APPROVAL U/S 80G OF THE INCOME - TAX ACT, 1961, WITHOUT GIVING APPROPRIATE OPPORTUNITY TO BE HEARD AND IGNORING ALL MERITS OF THE CASE AND HENCE THIS REJECTION IS AGAINST THE PRINCIPAL OF NATURAL JUSTICE. 2. IN THIS CASE THE LEARNED CIT HAS REJECTED ASSESSEES APPLICATION FOR GRANT OF REGISTRATION U/S 80G BY HOLDING AS UNDER : THE CASE WAS FIXED FOR HEARING ON 15 - 10 - 2013. AS THERE WAS NO ATTENTION NOR ANY WRITTEN SUBMISSION WERE FILED, IT WAS AGAIN POSTED FOR HEARING ON 24 - 10 - 2013. ON THIS DATE, SHRI ASHISH BAHETI, ADV. AND AUTHORISED REPRESENTATIVE ATTENDED. HE WAS ASKED TO SUBMIT A DETAILED ACTIVITY REPORT OF THE APPLICANT SOCIETY AND THE CASE WAS ADJOURNED TO 19 - 11 - 2013. SUBSEQUENTLY THE A.R. FILED AN ADJOURNMENT APPLICATION AND CONSIDERING THE SAME THE CASE WAS AGAIN FIXED FOR HEARING ON 26 - 11 - 2013. ON THIS DATE, THE A.R. ATTENDED AND FILED COPIES OF RETURN OF INCOME AND AUDIT RE PORT FOR THE A.Y. 2013 - 14. THE CASE WAS AGAIN POSTED FOR HEARING ON 09 - 01 - 2014 AND SUBSEQUENTLY ON 23 - 01 - 2014. ON 23 - 01 - 2014 SHRI SACHIN JAISWAL, ADV. ATTENDED AND HE WAS ASKED TO PRODUCE ORIGINAL VOUCHERS AND BILLS IN RESPECT OF THE EXPENDITURE INCURRE D ON SPECIFIED OBJECTS OF THE TRUST FOR VERIFICATION. THE CASE WAS FINALLY POSTED FOR HEARING ON 30 - 01 - 2014. ON THIS DATE, NEITHER ANYBODY ATTENDED PERSONALLY NOR ANY WRITTEN APPLICATION FOR ADJOURNMENT WAS RECEIVED. THE APPLICANT CHOSE NOT TO PRODUCE T HE PAPERS/DOCUMENTS CALLED FOR IN SUPPORT OF ITS CLAIM FOR GRANT OF APPROVAL U/S 80G OF THE I.T. ACT. IT WAS SPECIFICALLY ASKED TO FILE A DETAILED ACTIVITY REPORT AND TO PRODUCE THE ORIGINAL BILLS AND VOUCHERS FOR VERIFICATION. IN SPITE OF AFFORDING S O MANY OPPORTUNITIES THE APPLICANT FAILED TO SUBSTANTIATE ITS CLAIM FOR GRANT OF APPROVAL U/S 80G BY PRODUCING THE DOCUMENTS/PAPER CALLED FOR. IT IS IMPERATIVE TO MENTION HERE THAT AS PER SECTION 80G(V) READ WITH RULE 11AA(3), THE COMMISSIONER HAS TO S ATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST/INSTITUTION BY CALLING FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRUST OR INSTITUTION BEFORE GIVING APPROVAL U/S 80G TO SUCH TRUST OR INSTITUTION. SUCH SATISFACTION ABOUT THE GENUINEN ESS OF THE 3 ITA NO. 155/NAG/2014 ACTIVITIES OF THE TRUST CANNOT BE ARRIVED AT AS THE APPLICANT FAILED TO PRODUCE THE DOCUMENTS/PAPERS CALLED FOR WHICH WOULD HAVE SUPPORTED ITS CLAIM FOR APPROVAL U/S 80G. IN VIEW OF THE FACTS DISCUSSED ABOVE, THE APPLICATION OF THE TRUST DATED 19 - 07 - 2013 SEEKING APPROVAL U/S 80G OF THE I.T. ACT, 1961 IS HEREBY REJECTED. 3. AGAINST THE ABOVE ORDER ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT T HE ASSESSEE HAS ALREADY BEEN GRANTED REGISTRATION U/S 12AA OF THE I.T. ACT. LEARNED COUNSEL SUBMITTED THAT WITH REGARD TO THE APPLICATION U/S 80G LEARNED CIT HAS NOT GIVEN PROPER OPPORTUNITY. ON THE LAST DAY OF HEARING HE HAS ASKED FOR ORIGINAL BILLS AND VOUCHERS AND GIVEN ONLY 7DAYS TIME. HENCE LEARNED COUNSEL PLEADED THAT THE ISSUE MAY KINDLY BE REMITTED TO THE FILE OF LEARNED CIT TO ENABLE THE ASSESSEE TO SUBMIT THE REQUISITE DETAILS AND CANVASS THE ISSUE PROPERLY. LEARNED D.R., ON THE OTHER HAND, RELIE D UPON THE ORDERS OF THE LEARNED CIT. 5. UPON CAREFUL CONSIDERATION WE NOTE THAT A PERUSAL OF THE REJECTION OF THE ORDER U/S 80G CLEARLY SHOWS THAT FIRSTLY THE LEARNED CIT HAD ASKED FOR DETAILED ACTIVITY REPORT. AFTER RECEIPT OF THE COPIES OF RETURN OF INC OME AND AUDIT REPORT ETC. HE MADE A FRESH DEMAND ASKING PRODUCTION OF ORIGINAL VOUCHERS AND BILLS. IT IS CLEAR THAT ONLY ONE WEEKS TIME WAS GIVEN FOR THIS AND FOR NON COMPLIANCE BY THE ASSESSEE IN THIS REGARD, HE HAD REJECTED THE APPLICATION U/S 80G. HON BLE APEX COURT IN THE CASE OF SAHARA INDIA (FIRM) V/S. CIT 300 ITR 403 HAS HELD THAT EVEN ADMINISTRATIVE ORDERS HAVE TO BE CONSISTENT WITH RULES OF NATURAL JUSTICE. MOREOVER WE FIND THAT AS STATED BY THE LEARNED COUNSEL OF THE ASSESSEE, THE ASSESSEE IS E NJOYING AN EXEMPTION U/S 12A OF THE I.T. ACT. THIS HAS NOT BEEN DISPUTED BY THE REVENUE. IT IS ALSO NOT THE CASE THAT REGISTRATION U/S 12A HAS BEEN WITHDRAWN BY THE 4 ITA NO. 155/NAG/2014 REVENUE. IN THESE CIRCUMSTANCES, IN OUR CONSIDERED OPINION, INTEREST OF JUSTICE WILL BE SE R VED IF THE MATTER IS REMITTED TO THE FILE OF LEARNED CIT TO CONSIDER THE ISSUE AFRESH AFTER GIVING THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE WITH THE LEARNED CIT AND A PPEAR BEFORE HIM SUO MOTO WITHIN 30 DAYS OF THE RECEIPT OF THIS ORDER TO CANVASS THE CASE AS PER LAW. 6. IN THE RESULT THIS APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF AUGUST , 2015. SD/ - SD/ - (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER. NAGPUR, DATED: 28 TH AUGUST, 2015. COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT( A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR .