Sri Banashankari Vidya Samsthe, Bangalore V. The Commissioner of Income tax (Exemption), Bangalore

ITA 1566/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4706 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-05-2018
• Assessment Year: 2017-2018
• Appeal Filed On: 18-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: KUPENDRA SHETTY
• Keywords: Opportunity of being heard
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 1566/BANG/2017 ASSESSMENT YEAR : 2017 - 18 SRI BANASHANKARI VIDYA SAMSTHE, NO.2, VIP SCHOOL, NEW MICO ROAD, ADUGODI, BANGALORE 560 030. PAN: AAGTS 2360B VS. THE COMMISSIONER OF INCOME TAX (EXEMPTION), BENGALURU. APP ELL ANT RESPONDENT A PP EL LANT BY : SHRI KUPENDRA SHETTY, CA RE SPONDENT BY : MS. NEERA MALHOTRA, CIT(DR - II)(ITAT), BEN GALURU. DATE OF HEARING : 2 4 . 0 5 .201 8 DATE OF PRONOUNCEMENT : 01.06. 201 8 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 19.06.2017 OF THE CIT(EXEMPTIONS), BENGALURU [THE CIT(E)] RE JECTING THE APPLICATION FOR GRANT OF REGISTRATION U/S. 12A OF THE INCOME-TA X ACT, 1961 [THE ACT] 2. THE ASSESSEE, WHICH A TRUST CLAIMING TO BE A CHA RITABLE INSTITUTION, FILED AN APPLICATION FOR GRANT OF REGISTRATION U/S. 12A ON 15.12.2016. THE CIT(E) ISSUED LETTER DATED 15.3.17 AND 1.6.17 CALLI NG UPON THE ASSESSEE TO FURNISH CERTAIN DETAILS. IT APPEARS THAT THE ASSES SEE FILED CERTAIN DETAILS ON 16.6.17, WHICH ACCORDING TO THE CIT(E), WERE NOT CO MPLETE. THE CIT(E) ACCORDINGLY HELD THAT HE COULD NOT VERIFY THE SATIS FACTION OF THE CONDITIONS ITA NO. 1566/BANG/2017 PAGE 2 OF 3 FOR GRANT OF REGISTRATION U/S. 12A OF THE ACT BECAU SE OF THE ASSESSEES NEGLIGENCE IN NOT GIVING RELEVANT DETAILS. ACCORID NGLY, THE CIT(E) DISMISSED THE APPLICATION OF ASSESSEE FOR GRANT OF REGISTRATI ON. 3. AGGRIEVED BY THE ORDER OF CIT(E), THE ASSESSEE H AS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS. THE GROUND S OF APPEAL RAISED BY THE ASSESSEE READS AS FOLLOWS:- 1. THE ORDER OF THE COMMISSIONER IS ERRONEOUS ON T HE FACTS AND IN THE LAW. ON THE FACTS AND IN THE CIRCUMSTAN CES OF THE CASE HE OUGHT NOT TO HAVE REJECTED THE APPLICATION OF RE GISTRATION U/S. 12AA. 2. THE LEARNED COMMISSION IS NOT JUSTIFIED IN REJEC TING THE APPLICATION WITHOUT GIVING REASONABLE OPPORTUNITY F OR THE ASSESSEE OF BEING HEARD BEFORE PASSING HIS ORDER UN DER SECTION 12AA. 3. THE ORDER STATED THAT APPLICANT TRUST FILED INCO MPLETE DETAILS ON 16/06/2017 AND HOWEVER LEARNED COMMISSIO NER FAILED TO EXPLAIN OR ELABORATE THE INCOMPLETENESS WITHOUT PASSING SPEAKING ORDER. 5. AS RIGHTLY CONTENDED IN GROUND NO.3 BY THE ASS ESSEE, THE CIT(E) HAS NOT ELABORATED WHAT WAS THE NON-COMPLIANCE BY T HE ASSESSEE. WE ARE OF THE VIEW THAT THE ASSESSEE HAS NOT BEEN AFFORDED PROPER OPPORTUNITY OF BEING HEARD BY THE CIT(E). ACCORDINGLY, WE SET ASI DE THE ORDER OF CIT(E) AND REMAND THE QUESTION OF GRANT OF REGISTRATION U /S. 12A TO CIT(E) FOR FRESH CONSIDERATION. THE CIT(E) WILL AFFORD OPPORTU NITY OF BEING HEARD TO THE ASSESSEE AND DECIDE ON THE QUESTION WHETHER THE ASS ESSEE SHOULD BE GRANTED REGISTRATION U/S. 12A OF THE ACT. ITA NO. 1566/BANG/2017 PAGE 3 OF 3 6. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 1 ST DAY OF JUNE, 2018. SD/- SD/- ( INTURI RAMA RAO ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 1 ST JUNE, 2018. / D ESAI S MURTHY / COPY TO: 1. APP ELL ANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.