Sant Upasni Maharaj Bahuudeshiya Sevabhavi Sanstha, Nashik V. Commissioner of Income-tax, (Exemption), Pune, Pune

ITA 1638/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6149 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 25-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHISH BHALGAT
• Keywords: Charitable institution; Principle of natural justice
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI LALIET KUMAR , JM . / I TA NO. 1638 /PUN/20 19 SANT UPASNI MAHARAJ BAHUUDESHIYA SEVABHAVI SANSTHA, UPADHYE COLLEGE OF SCIENCE, AT & POST - SAYYAD PIMPRI, NEAR BAFNA WAREHOUSE, NASHIK - 422 003. PAN : AANTS5021J ....... / APPELLANT / V/S. THE COMMISSIONER OF INCOME TAX ( EXEMPTION ) , PUNE. / RESPONDENT A SSESSEE BY : SHRI ASHISH BHALGAT REVENUE BY : SHRI DEEPAK GARG / DATE OF HEARING : 1 2 .0 2 .2020 / DATE OF PRONOUNCEMENT : 12 .02 .2020 / ORDER PER LALIET KUMAR, JM: THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT (EXEMPTION) PUNE DATED 31.08.2019 PASSED U/S.12AA(1)(B) (II) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) AS PER THE FOLLOWING GROUNDS OF APPEAL ON RECORD: 2 ITA NO. 1638 /PUN/20 19 1.ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF I . T (E) PUNE IS NOT JUSTIFIED IN REJECTING THE APPLICATION FOR REGISTRATION WHEN THE TRUST FULFILLS THE CONDITIONS OF SECTION 2(15), 11, 12AA. THE REGISTRATION MAY PLEASE BE ACCORDED. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF I . T (E) PUNE IS NOT JUSTIFIED IN REJECTING THE APPLICATION FOR RE GISTRATION UNDER SECTION 12AA OF THE IT ACT WHEN THE TRUST EXISTS SOLELY FOR EDUCATION AND CHARITABLE PURPOSE AND NOT FOR PROFIT. THE TRUST MAY PLEASE BE REGISTERED UNDER SECTION 12AA. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF I . T (E) PUNE IS NOT JUSTIFIED IN REJECTING THE APPLICATION ON THE PRESUMPTION AND ASSUMPTION. THE ORDER MAY BE CANCELLED AND REGISTRATION BE GRANTED. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER OF I . T (E) PU NE IS NOT JUSTIFIED IN PROVIDING THE COPY OF REPORT OF THE LEARNED COMMISSIONER OF I . T (E) PUNE AND THE INSPECTOR FOR COMMENTS WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. THE ORDER MAY PLEASE BE CANCELLED. 5 . THE APPELLANT CRAVES LEAVE TO A DD, ALTER, AMEND OR WITHDRAW ANY OF THE GROUNDS OF APPEAL. 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESSEE HAS SUBMITTED THAT MENTIONED THAT THE TRUST IS REGISTERED UNDER BPT ACT, 1950 WITH REGISTRATION NUMBER F - 19490(AU) DATED 09.04.2013. THE TRUST HAD EARLIER APPLIED FOR 12AA ON 19.03.2018 AND THE SAID APPLICATION WAS REJECTED VIDE ORDER DATED 26.09 .2018 AFTER CALLING A REPORT FROM THE RESPECTIVE ASSESSING OFFICER. THE LD. AR FURTHER SUBMITTED THAT THE TRUST FULFILS THE CONDITIONS AS MENTIONED UNDER SECTION 2(15), 11,12AA OF THE ACT AND THE TRUST EXISTENTS SOLELY FOR EDUCATION AND CHARITABLE PURPOSE AND NOT FOR PROFIT. THE LD. AR OF THE ASSESSEE FURTHER SUBMITTED THAT THE TRUST DOES NOT HAVE ANY REVENUE OR CAPITAL TRANSACTION WITH UPADHYE CLASSES LLP. 2.1 THE LD. AR OF THE ASSESSEE ALSO SUBMITTED THAT THE LD. CIT(EXEMPTION) HAS NOT CONFRONTED THE COP Y OF REPORT OF THE LD. CIT(EXEMPTION) AND THE INSPECTOR FOR COMMENTS. MENTIONING THAT THE CIT (EXEMPTION) REJECTED THE SAID 3 ITA NO. 1638 /PUN/20 19 APPLICATION OF THE ASSESSEE FOR WANT OF DETAILS, LD. AR FOR THE ASSESSEE SUBMITTED THAT THE MATTER MAY BE REMANDED TO HIS FILE ONCE A GAIN FOR FRESH ADJUDICATION. 3. THE LD. DR FOR THE REVENUE HAS PLACED STRONG RELIANCE ON THE ORDERS OF THE LOWER AUTHORITIES. 4 . W E HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. CIT (EXEMPTION) REJECTED THE REGISTRATION MERELY ON THE BASIS OF THE REPORT OF THE INSPECTOR. THE INSPECTOR HAD CONDUCTED DETAILED ENQUIRY AND HAVE ALSO CONTACTED VARIOUS STUDENTS WHO ARE EXEMPTED FROM PAYING THE FEES BY THE ASSESSEE TRUST. THE LD. AR OF THE ASSESSEE SUB MITTED THAT NEITHER THE COPY OF THE REPORT WAS PROVIDED TO THE ASSESSEE NOR THE COMMENTS OF THE ASSESSEE WERE CALLED FOR ON THE REPORT OF THE I NSPECTOR. THE LD. CIT(EXEMPTION) WITHOUT CONFRONTING THE REPORT OF THE INSPECTOR HAVE WRONGLY HELD THAT THE ASSESS EE WAS INTO COMMERCIAL ACTIVITIES. IN THE LIGHT OF THE ABOVE WE ARE OF THE OPINION THAT THE LD. CIT(EXEMPTION) WAS UNDER DUTY TO PROVIDE THE COPY OF THE REPORT OF THE I NSPECTOR TO THE ASSESSEE AND THEREAFTER THE ASSESSEE SHOULD CALLED UPON TO FURNISH ITS RE PORT AND THE ASSESSEE MAY ALSO BE CALLED UPON BY THE LD. CIT(EXEMPTION) TO FILE ANY OTHER DOCUMENTS TO PROVE THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE. 5. AS THE LD. CIT(EXEMPTION) HAS NOT FOLLOWED THE PRINCIPLES OF NATURAL JUSTICE AND HAS ALSO NOT PROVIDED THE OPPORTUNITY TO CONTRADICT THE REPORT OF THE I NSPECTOR. WE ARE OF THE OPINION THAT THE MATTER IS REQUIRED TO BE SENT BACK TO THE FILE OF LD. CIT(EXEMPTION) FOR FRESH ADJUDICATI ON OF THE MATTER IN ACCORDANCE WITH LAW. NEEDLESS TO SAY IF THE LD. CIT(EXEMPTION) RELIES UPON 4 ITA NO. 1638 /PUN/20 19 ANY DOCUMENT OR REPORT OF THE INSPECTOR AGAINS T TH E ASSESSEE THEN THE COPY OF THE SAME SHALL BE PROVIDE TO THE ASSESSEE AND THE ASSESSEE WOULD BE CALLED UPON TO PUT FORWARD ITS POINT OF VIEW AND IF SO REQUIRED MAY ALSO CALLED UPON THE ASSESSEE TO FILE ANY DOCUMENTS / EVIDENCE SUBSTANTIATING ITS NATURE OF THE ACTIVITIES. HENCE , THE GROUNDS RAISED BY THE ASSESSEE IN APPEAL ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRO NOUNCED ON 12 TH DAY OF FEBRUARY , 20 20 . SD/ - SD/ - D. KARUNAKARA RAO LALIET KUMAR ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 12 TH FEBRUARY , 2020. SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (EXEMPTION), PUNE. 4. THE CIT, PUNE. 5 . , , , / DR, ITAT, B BENCH, PUNE. 6 . / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 5 ITA NO. 1638 /PUN/20 19 DATE 1 DRAFT DICTATED ON 12 .02 .2020 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 12 . 0 2 .20 20 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER