Brahma Shree Narayana Guruswamy Vaidika Prasthistana R, Mangalore V. Commissioner of Income Tax, Bangalore

ITA 1559/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7070 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 29-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNDAR RAO CHINTALA
• Keywords: Principle of natural justice; Non compliance
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND S HRI LALIET KUMAR, JUDICIAL MEMBER ITA NO. 1 559 /BANG/201 6 (ASST. YEAR -- ) BRAHMA SHREE NARAYANA GURUSWAMY VAIDIKA PRATHISHTANA R, D.NO.1 - 240/2, ADYAR VILLAGE & POST M ANGALORE. . APPELLANT PAN AACTB4936E. VS. THE COMMISSIONER OF INCOME - TAX (EX EMPTIONS), BANGALORE . . RESPONDENT APPELLANT BY : SHRI SANDEEP, C.A RESPONDENT BY : S HRI SUNDAR RAO CHINTALA , CIT DATE OF HEARING : 2 8 - 11 - 201 7 DATE OF PRONOUNCEMENT : 6 - 1 2 - 201 7 O R D E R PER SHRI JASON P BOAZ , ACCOUNTANT MEMBER : TH I S APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT( EXEMPTIONS), BANGALORE U/S 12AA(1)(B)(II) OF THE INCOME - TAX ACT, 1961 (IN SHORT THE ACT ) DATED 30/6/2016 REJECTING THE ASSESSEE S APPLICATION FOR REGISTRA TION. 2. BRIEFLY STATED, THE FACTS RELEVANT FOR THE DISPOSAL OF THIS APPEAL ARE AS UNDER: - ITA NO. 1 559 /B/201 6 2 2.1 THE ASSESSEE, A TRUST ESTABLISHED ON 1/1/2009 FILED AN APPLICATION FOR REGISTRATION U/S 12A OF THE ACT ON 9/12/2015. AS PER THE IMPUGNED ORDER, CERTAIN DE T AILS/ CLARIFICATIONS WERE CALLED FOR BY THE ASSESSING OFFICER ( AO ) VIDE LETTER DATED 28/1/2016 TO WHICH THERE WAS PARTIAL COMPLIANCE BY THE ASSESSEE. IT IS MENTIONED THAT VIDE OFFICE LETTER DATED 2/6/2016, THE LD CIT REQUIRED THE ASSESSEE TO FILE CERTAIN DET AILS BY 8/6/2016. IN VIEW OF THE ASSESSEE S NON COMPLIANCE THERETO, THE LD CIT REJECTED THE ASSESSEE S APPLICATION FOR REGISTRATION ON GROUNDS OF ABSENCE OF RELEVANT DETAILS . 2.2 AGGRIEVED BY ORDER OF THE CIT( EXEMPTIONS ), BANGALORE DATED 30/6/2016 REJECTI NG THE ASSESSEE S TRUST S APPLICAT I ON FOR REGISTRATION, THE ASSESSEE FILED AN APPEAL BEFORE THE TRIBUNAL WHICH WAS DISMISSED FOR NON - PROSECUTION VIDE ORDER OF EVEN NUMBER DATED 30/5/2017. THIS ORDER OF THE TRIBUNAL WAS RECALLED VIDE ORDER IN M.P NO.185/BA NG/2017 DATED 1/9/2017. IT IS IN THESE CIRCUMSTANCES THAT THIS APPEAL IS NOW BEFORE US. 3. GROUNDS OF A PPEAL RAISED BY THE ASSESSEE ARE AS UNDER : - 1. THAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (EXEMPTION), IN SO FAR IT IS PREJUDICIAL TO THE INTEREST OF THE APPELLANT IS BAD AND ERRONEOUS IN LAW AND AGAINST THE 6.TS AND CIRCUMSTANCES OF THE CASE. 2. THAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (EXEMPTION) IN DENYING THE REGISTRATION U/S ITA NO. 1 559 /B/201 6 3 12A OF THE ACT IS VIOLATIVE OF PRINCIPLES OF NATURAL JUSTICE IS LIABLE TO BE QUASHED. 3. THAT THE FINDING OF THE LEARNED COMMISSIONER OF INCOME - TAX (EXEMPTION) THAT THE APPELLANT HAS NOT RESPONDED TO THE NOTICES ISSUED BY THE DEPARTMENT IS PERVERSE AS BEING CONTRARY TO THE MATERIALS ON RECORD. 4. THAT THE LEARNED COMMISSIONER OF INCOME - TAX (EXEMPTION) OUGHT TO HAVE GRANTED THE REGISTRATION U/S. 1 2AA OF THE ACT. 4. ACCORDING TO THE LD A R FOR THE ASSESSEE, AFTER THE ASSESSEE TRU S T PUT FORTH AN APPLICATION FOR REGISTRATION ON 9/12/2015, THE A O CAL LED FOR CERTAIN DETAILS VIDE LETTER DATED 28/1/2016 AND IN RESPONSE THERETO THE ASSESSEE FILED DETAILS ON 3/3/2016. IT IS SUBMITTED THAT THE LETTER DATED 2/6/2016 S AID TO BE ISSUED BY THE LD CIT CALLING FOR DETAILS WAS NOT RECEIVED BY THE ASSESSEE, BUT TH E ASSESSEE HAD RECEIVED A TELEPHONIC MESSAGE FROM TH E OFFICE OF THE LD CIT TO AMEND THE TRUST DEED BY REMOVING THE CLAUSE OF OPENING BRANCH OFFICE OF THE ASSESSEE TRUST OUTSIDE INDIA. THE LD AR STATED THAT THE ASSESSEE SENT A N OTARIZED COPY OF THE RECTIFI ED TRUST DEED TO THE LD CIT ON 20/6/2016 BY SPEED POST FROM MANGALORE (COPY OF LET T ER AND SPEED POST RECEIPT ARE PLACED AT PAGE 1 OF PAPER BOOK) WHICH WAS RECEIVED/ DELIVERED TO THE ADDRESSEE I.E LD CIT ON 22/6/2016 AS PER THE E - RECORD OF INDIA P OSTS (COPY PLACED AT PAGE 2 OF PAPER BOOK). IT IS THE CONTENTION OF THE ASSESEE THAT EVEN AFTER ITS COMPLIANCE WITH FILING THE ITA NO. 1 559 /B/201 6 4 DETAILS/DOCUMENTS REQUIR E D BY 22/6/2017, THE LD CIT WENT ON TO INCORRECTLY OBSERVE THAT THE ASSESSEE TRUST HAD NOT RESPONDED AND IN THE AB SENCE OF DETAILS REJECTED THE ASSESSEE S APPLICATION FOR REGISTRATION VIDE ORDER DATED 30/6/2016 . IT IS PRAYED THAT IN THE ABOVE FACTUAL MATRIX OF THE CASE, THE IMPUGNED ORDER OF THE LD CIT BE SET ASIDE AND THE MATTER BE RE MITTED BACK FOR FRESH CONSIDERAT ION OF THE ASSESSE S APPLICATION FOR REGISTRATION. 4.2 PER CONTRA, THE LD DR FOR REVENUE RELIED ON THE ORDER OF THE LD CIT REJECTING THE ASSESSEE S TRUST S APPLICATION FOR REGISTRATION. 4.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD. FROM A PERUSAL OF THE R E CORDS BEFORE US, IT APPEARS THAT AFTER THE ASSE S SEE TRUST FILED THE APPLICATION FOR GRANT OF REGISTRATION U/S 12A OF THE ACT ON 9/12/2015, THE AO REQUIRED THE ASSESSEE TO FILE CERTAIN DETAILS. AC CORDING TO THE AO THE ASSESSEE FILED INCOMPLETE DETAILS/CLARIFICATION ON 5 / 1/2016 AND 3 / 3 / 2016. THE RECORD INDICATES THAT FURTHER DETAILS WERE REQUIRED BY THE OFFICE OF THE LD CIT I.E AMENDMENT OF THE TRUST DEED BY EXCLUDING A CERTAIN CLAUSE ; WHICH WAS CO NVEYED TO THE ASSESEE TELEPHONICALLY. AS PER THE DETAILS FILED BEFORE US BY THE ASSESSEE TRUST IN PAPER BOOK (PAGE 1 TO 2), COPIES OF THE CORRESPONDENCE THEREIN INDICATE THAT THE ASSESEE SENT THE LD CIT COPIES OF THE REC T IFIED TRUST DEED VIDE LETTER DATED 20/6/2016 ON 21/6/2016 BY SPEED POST FROM MANGALORE WHICH WAS DELIVERED AT THE OFFICE O F THE LD CIT AT BANGALORE ON 22/6/2016 AS P E R THE E - RECORD OF INDIA POST . IN THIS FACTUAL MATRIX OF THE CASE, AS SET OUT ABOVE, IT IS EVIDENT FROM A PERUSAL OF THE I MPUGNED ORDER THAT THE ITA NO. 1 559 /B/201 6 5 LD C I T HAD NOT CONSIDERED THE DETAILS FILED BY THE ASSE S SEE TRUST ON 22/6/2016 VIDE LETTER DATED 20/6/2016, WHEN HE PASSED THE IMPUGNED ORDER THEREAFTER ON 30/6/2016 REJECTING THE ASSESSEE S APPLICATION FOR REGISTRATION FOR THE INCOR RECT REASONS THAT HE WAS DOING SO IN THE ABSENCE OF RELEVANT DETAILS , AS THE ASSESSEE HAD NOT FILED THEM . IN OUR CONS I DERED VIEW, IN THE ABOVE FACTUAL MATRIX OF THE CASE, THE IMPUGNED ORDER OF THE LD CIT, REJECTING THE ASSESSEE S APPLICATION FOR REGISTRAT ION U/S . 12A OF THE ACT IS UNSUSTAINABLE. WE, THEREFORE, IN THE INTEREST OF SUBSTANTIAL JUSTICE, SET ASIDE THE IMPUGNED ORDER OF THE LD CIT AND REMAND THE ISSUE , OF THE ASSESSE S TRUST S APPLICATION FOR REGISTRATION U/S 12A OF THE ACT , BACK TO HIS FILE F OR FRESH EXAMINATION AND ADJUDICATION THEREON AFTER AFFORDING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEA R D AND TO FILE DETAILS/SUBMISSIONS REQUIRED, WHICH SHALL BE DULY CONSIDERED. WE HOLD AND DIRECT ACCORDINGLY. 7 . IN THE RESULT, THE ASSESSEE S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH DEC. , 201 7 . SD/ - SD/ - ( LALIET KUMAR ) ( JASON P BOAZ ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE DATED : 6 / 1 2 /201 7 * REDDY GP / VMS