Vel Arakkattalai, CHENNAI V. CIT, CHENNAI

ITA 1606/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8115 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 01-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNEEL VERMA
• Assessee Lawyers: R K V SUNDAR
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . . . , . , & BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1606/MDS/2016 M/S. VEL ARAKKATTALAI 121/B, KAMATCHIAMMAN KOIL STREET, RAMANATHAPURAM, COIMBATORE-641 045. VS THE ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. R.K.V.SUNDAR, ADVOCATE /RESPONDENT BY : MR. SUNEEL VERMA, CIT /DATE OF HEARING : 17 TH AUGUST,2016 /DATE OF PRONOUNCEMENT : 8 TH NOVEMBER, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM: THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI DATED 29.01.2016 IN C. NO.CI T(E) 2(567)/2015-16 DENYING REGISTRATION UNDER SECTION 12AA OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS A PPEAL, HOWEVER, THE CRUX OF THE ISSUE IS AS FOLLOWS:- THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS ERRED IN DENYING THE REGISTRATION UNDER SECTION 12AA OF THE ACT BY REJECTING THE APPLICATION IN FORM 10A, WITHOUT 2 ITA NO.1606/MDS/2016 PROVIDING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PUBLIC CHARITABLE TRUST CONSTITUTED UNDER DEED OF TRUST ON 27.12.2010 SUBMITTED AN APPLICATION ON 10.07.2015 IN FORM NO.10A FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. SUBSEQUENTLY, THE LEARNED COMMISSIONER OF INCOME TA X (EXEMPTIONS) CALLED FOR CERTAIN CLARIFICATIONS/EXPL ANATION VIDE LETTER DATED 18.12.2015, HOWEVER, THE SAME WAS RETU RNED UNSERVED WITH A POSTAL ENDORSEMENT DOOR LOCKED. SINCE THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) COU LD NOT OBTAIN THE CLARIFICATION/EXPLANATIONS REQUIRED BY H IM, HE REJECTED THE APPLICATION IN FORM 10A AND THEREBY D ENIED REGISTRATION UNDER SECTION 12AA OF THE ACT, AGGRIEV ED BY WHICH THE ASSESSEE TRUST IS NOW IN APPEAL BEFORE U S. 4. AT THE OUTSET, THE LEARNED AUTHORIZED REPRESENTA TIVE SUBMITTED THAT ONE MORE OPPORTUNITY MAY BE PROVIDED TO THE ASSESSEE TRUST TO FILE THE REQUIRED THE DETAILS BE FORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) IN ORDER TO 3 ITA NO.1606/MDS/2016 ESTABLISH THE IDENTITY AND GENUINENESS OF THE ASSES SEE TRUST. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REM ITTED BACK TO THE FILE OF THE LEARNED COMMISSIONER OF INCOME T AX (EXEMPTIONS) FOR FRESH CONSIDERATION. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF THE LEARNE D AUTHORIZED REPRESENTATIVE AND REQUESTED FOR CONFIRM ING THE ORDERS OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS AVAILABLE ON RECORD. WE DO NO T FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LEAR NED AUTHORIZED REPRESENTATIVE. FROM THE ORDER OF THE LE ARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) IT IS APPAR ENT THAT THE REVENUE HAS PROVIDED SUFFICIENT OPPORTUNITY TO THE ASSESSEE TRUST OF BEING HEARD. THE ASSESSEE TRUST HAS FAILED TO FURNISH ITS CHANGE OF ADDRESS OR RESPOND TO THE QUERY OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS). HOWEVER, IN THE INTEREST OF JUSTICE, WE HEREBY PROV IDE ONE MORE OPPORTUNITY TO THE ASSESSEE TRUST OF BEING HEA RD AND 4 ITA NO.1606/MDS/2016 ACCORDINGLY REMIT THE MATTER TO THE FILE OF THE LEA RNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) FOR FRESH CONSIDERATION. WE ALSO CAUTION THE ASSESSEE TO PROM PTLY CO- OPERATE WITH THE REVENUE IN THEIR PROCEEDINGS, FAIL ING WHICH THE REVENUE SHALL PROCEED AND PASS APPROPRIATE ORDE RS IN ACCORDANCE WITH LAW AND MERIT. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 8 TH NOVEMBER, 2016 SD/- SD/- ( . . . ) ( . ) (N.R.S.GANESAN) ( A.M OHAN ALANKAMONY ) ! # / JUDICIAL MEMBER # / ACCOUNTANT MEMBER /CHENNAI, & /DATED 8 TH NOVEMBER, 2016 SOMU !() *) /COPY TO: 1. APPELLANT 2. RESPONDENT 3. + () /CIT(A) 4. + /CIT 5. ) !!/ /DR 6. 2 /GF .