Lalit Monhanka Foundation, Kolkata V. DIT (Exemption), Kolkata, Kolkata

ITA 1603/KOL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48127 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-05-2011
• Assessment Year: misc
• Appeal Filed On: 12-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIYUSH KOLHE
• Assessee Lawyers: AMITAVA BOSE
• Keywords: Reasonable cause
• Section: 12AA

Judgement Text

, , , , , , ,, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA ( (( ( ) )) ) . . . . . . . . , ,, , , , , , ! ! ! ! ' # ' # ' # ' #, , , , $% $% $% $% , ,, , ) [BEFORE HONBLE SRI B. R. MITTAL, JM & HONBLE AKBE R BASHA, AM] !& !& !& !& / I.T.A NO. 1603/KOL/2010 !& !& !& !& / I.T.A NO. 720/KOL/2010 LALIT MOHANKA FOUNDATION -VS.- DY. COMMISSIONER OF WEALTH TAX (E) KOLKATA. [PAN : AAATL 7648 D] KOLKATA. [ '( /APPELLANT ] [ *+'(/ RESPONDENT ] '( / FOR THE APPELLANT : SHRI AMITAVA BOSE *+'( / FOR THE RESPONDENT : SHRI PIYUSH KOLHE $# /ORDER [ ' # ' # ' # ' # , $% $% $% $% ] PER AKBER BASHA, A.M. THESE TWO APPEALS ARE FILED BY ASSESSEE AGAINST OR DER OF DIT(E), KOLKATA DATED 30.06.2010. BOTH THE APPEALS ARE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS TAKEN BY THE ASSESSEE IN ITA NO.160 3/KOL/2010 ARE AS UNDER :- (1) FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE THE ORDER DATED 30.06.2010 REJECTING THE APPLICATION OF REGISTRATIO N U/S. 12AA AND APPROVAL U/S. 80G(5)(VI) OF THE I.T. ACT, 1961 IS BAD IN LAW AS WELL AS IN FACTS. (2) FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCE O F THE CASE THE LD. DIT(E), KOLKATA WAS WRONG IN STATING THAT THERE WAS VIOLATI ON OF CLAUSE OF IRREVOCABILITY OF THE TRUST. ON A PROPER CONSIDERAT ION OF THE FACTS OF THE CASE THE LD. DIT(E) SHOULD HAVE FOUND THAT THERE WAS NO VIOLATION AND THE TRUST IS ENTITLED FOR REGISTRATION U/S. 12AA AND APPROVAL U/S. 80G(5)(VI) OF THE I.T. ACT, 1961. 2.1 THE GROUNDS TAKEN BY THE ASSESSEE IN ITA NO.720 /KOL/2011 ARE AS UNDER :- [ ITA NO. 1603/KOL/2010] 2 (1) FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCE O F THE CASE THE ORDER DATED 30.06.2010 REJECTING THE APPLICATION FOR APPROVAL U /S. 80G(5)(VI) OF THE I.T. ACT, 1961 IS BAD IN LAW AS WELL AS IN FACTS. (2) FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCE OF TH E CASE THE LD. DIT(E), KOLKATA WAS WRONG IN REJECTING THE PRAYER FOR EXEMP TION U/S. 80G(5)(VI) OF THE I.T. ACT, 1961. THE OBSERVATION MADE IN THIS RE GARD THAT DONATIONS WERE GIVEN OTHERS THAN PROMOTION OF SPORTS AND REGISTERE D OFFICE OF THE TRUST IS AT SETTLORS FLAT VIOLATE THE CLAUSE OF IRREVOCABLE OF THE TRUST IS WRONG AND INCORRECT. ON A PROPER CONSIDERATION OF THE FACTS O F THE CASE THE LD. DIT(E) SHOULD HAVE FOUND THAT THE TRUST IS ENTITLED FOR EX EMPTION U/S. 80G(5)(VI) OF THE I.T. ACT, 1961. 3. THE APPEAL FILED BY THE ASSESSEE IN ITA NO.720/K OL/2011 IS TIME BARRED BY 232 DAYS. THE ASSESSEE HAS FILED APPLICATION DATED 10.05.2011 PRAYING TO CONDONE DELAY STATING THAT DUE TO OVER-SIGHT AND UNINTENTIONAL, THE ASSESSEE FILED SINGLE APPEAL AGAINST THE ORDER OF DIT (E) IN REJECTING THE PETITION FOR REGISTRATION UNDER SECTI ON 12AA AND APPROVAL UNDER SECTION 80G(5)(VI) OF THE ACT. IT IS SUBMITTED THAT THE APP EAL FILED ON 12.08.2010 MAY BE TREATED AS APPEAL AGAINST THE REGISTRATION OF APPLICATION UNDE R SECTION 12AA AND NOW THE ASSESSEE HAS FILED APPEAL AGAINST THE ORDER OF THE DIT(E) FOR RE JECTING THE APPEAL UNDER SECTION 80G(5)(VI) OF THE ACT. HENCE, THE PRESENT APPEAL BECOME TIME B ARRED. THE LD. DEPARTMENTAL REPRESENTATIVE HAS NOT SERIOUSLY OBJECTED TO THE PR AYER OF THE ASSESSEE. AFTER HEARING BOTH THE PARTIES AND CONSIDERING THE CONTENTS OF THE APPLICA TION, WE ARE OF THE CONSIDERED VIEW THAT THERE IS A REASONABLE CAUSE FOR DELAY IN FILING APPEAL. H ENCE, WE CONDONE THE DELAY AND CONSIDER THE APPEAL. 4. AT THE OUTSET, WE FIND THAT THE DIT(EXEMPTION) HAS NOT PASSED A SPEAKING ORDER WHILE REJECTING THE APPLICATIONS FOR REGISTRATION UNDER S ECTION 12AA AND APPROVAL UNDER SECTION 80G(5)(VI) OF THE ACT. IT IS ALSO THE FACT THAT THE ASSESSEE HAS FILED THE FOLLOWING DOCUMENTS BEFORE THE DIT (EXEMPTION) :- (I) COPY OF DEED OF TRUST DATED 30.12.2009 (II) COPY OF DEED OF ADDENDA DATED 29.06.2009 (III) COPY OF PROFIT AND LOSS ACCOUNT AND BALANCE SHEET F ROM 30.12.2009 TO 31.03.2010. (IV) DETAILS OF DONATION PAID AND CERTIFICATE UNDER SECT ION 80G(5)(VI) THEREOF. (V) SUBMISSION/WRITE UP OF LALIT MOHANKA FOUNDATION. [ ITA NO. 1603/KOL/2010] 3 ALSO, IN VIEW OF THE FACT THAT ASSESSEES LD. COUNS EL REQUIRES ONE MORE OPPORTUNITY TO REPRESENT HIS CASE BEFORE DIT (EXEMPTION) FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT AND APPROVAL UNDER SECTION 80G(5(VI) OF THE ACT , IN THE INTEREST OF JUSTICE, WE FEEL IT PROPER TO RESTORE THIS MATTER TO THE FILE OF THE DIT(EXEMP TION) FOR FRESH CONSIDERATION AND DIRECT THE ASSESSEE TO COOPERATE WITH THE DEPARTMENT FOR DISPO SAL OF HIS CASE AT THE EARLIEST. WE DIRECT ACCORDINGLY. 5. SINCE WE REMITTED BACK THE MATTER TO THE FILE OF THE DIT (EXEMPTION) WITH REGARD TO THE REGISTRATION UNDER SECTION 12AA OF THE ACT, THE APP EAL FILED BY THE ASSESSEE-TRUST FOR GRANT OF APPROVAL UNDER SECTION 80G(5)(VI) OF THE ACT BECOME S CONSEQUENTIAL. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. $# - ./ 0 12 ORDER PRONOUNCED IN THE COURT ON 11. 05. 2011. SD/- SD/- [ . . , ] [ ' #, $% ] [ B. R. MITTAL ] [ AKBER BASHA ] JUDICIAL MEMBER ACCOUNTANT M EMBER (3%) DATED : 11 TH MAY, 2011. $# 4 *5 6$57/ COPY OF THE ORDER FORWARDED TO: 1. '( /APPELLANT- LALIT MOHAN FOUNDATION, 5B, MARUTI SA DAN, 12, DOVER PARK, KOLKATA-700 019. 2 *+'( / RESPONDENT : DIRECTOR OF INCOME TAX (EXEMPTION), 10B, MIDDLETON ROW, 6 TH FLOOR, KOLKATA-700 071. 3. #// THE CWT, 4. #/ ()/ THE CWT(A), KOLKATA. 5. =0 *// DR, KOLKATA BENCHES, KOLKATA [+5 */ TRUE COPY] $#/./ BY ORDER, [ ITA NO. 1603/KOL/2010] 4 !? /DEPUTY/ASSTT REGISTRAR [ KKC @A /B? `` C /SR.PS]