THE BOMBAY CITY EDUCATIONAL SOCIETY, MUMBAI V. DIT (E), MUMBAI

ITA 1649/MUM/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84501 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2014
• Appeal Filed By: Assessee
• Bench Allotted: G
• Next Hearing Date: 15-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 25-02-2011
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO. 1649/MUM/2011 ASSESSMENT YEAR: -2007-08 THE BOMBAY CITY EDUCATIONAL SOCIETY, MOHD. UMAR RAJJAB MUM. SECONDARY SCHOOL BLDG. MOHD. UMAR RAJJAB ROAD, GROUND FLOOR, MADANPURA, MUMBAI 08. VS.` DIRECTOR OF INCOME TAX (EXEMPTION) MUMBAI. PAN:- AAATT3602K APPELLANT RESPONDENT ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 31.12.2010 OF THE DIT (EXEMPTION) FOR THE A.Y. 2007-08, WHEREBY T HE RENEWAL OF REGISTRATION U/S 80G WAS DENIED. 2. WE HAVE HEARD THE LD. AR AS WELL AS LD. DR AND C ONSIDERED THE RELEVANT MATERIAL ON RECORD. THE ASSESSEE IS A PUBLIC CHARIT ABLE TRUST, REGISTERED U/S 12A OF THE INCOME TAX ACT. THE ASSESSEE WAS ALSO GRANTED CERTI FICATE U/S 80G WHICH WAS VALID UP TO 31.03.2006. THE ASSESSEE MADE AN APPLICATION ON 11 TH JAN. 2007 FOR GRANT OF CERTIFICATE U/S 80G. THE DIT HAS REJECTED THE APPLI CATION OF THE ASSESSEE ON THE GROUND THAT THE MATTER WAS KEPT PENDING FOR COMPLIA NCE ON THE PART OF THE ASSESSEE BUT SINCE THERE IS NO COMPLIANCE FROM THE ASSESSEE TRUST, THE APPLICATION WAS DISPOSED OFF ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND ACCORDINGLY FOR WANT OF MATERIAL TO SATISFY HIMSELF THE APPLICATION WAS REJ ECTED. THE LD. AUTHORIZED ASSESSEE BY SHRI NISHIT GANDHI & KETAN RAMBHIYA REVENUE BY SHRI KISAN VYAS DATE OF HEARING 16.12.2014 DATE OF PRONOUNCEMENT 16.12.2014 THE BOMBAY CITY EDUCATIONAL SOCIETY, 2 | P A G E REPRESENTATIVE OF THE ASSESSEE HAS POINTED OUT THAT THE ASSESSEE DULY FILED ALL THE RELEVANT RECORDS BEFORE THE DIT AS IT IS EVIDENT FR OM THE LETTER DATED 27.11.2006 WHICH WAS RECEIVED IN THE OFFICE OF DIT ON 11.01.20 07. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT WHILE SUBMITTING THE APPLICATION, THE ASSESSEE FURNISHED ALL RELEVANT RECORD. HOWEVER, TH E DIT HAS PASSED THIS ORDER AFTER A GAP OF AROUND THREE YEARS WITHOUT GIVING A PROPER O PPORTUNITY OF HEARING TO THE ASSESSEE. HE HAS FURTHER POINTED OUT THAT THE LAST NOTICE ISSUED BY THE DIT ON 13.12.2010 WAS NOT SERVED UPON THE ASSESSEE BECAUSE THE BUILDING OF THE ASSESSEE WAS COLLAPSED. THUS THE LD. AUTHORIZED REPRESENTATI VE HAS SUBMITTED THAT THE IMPUGNED ORDER IS CONTRARY TO THE FACT AS WELL AS I N VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. HE HAS ALSO FILED THE ORDER DATED 7.11.201 4, WHEREBY THE 12A CERTIFICATE HAS BEEN MODIFIED BY THE AUTHORITIES ON ACCOUNT OF CHAN GE IN THE NAME OF ASSESSEES TRUST. 3. ON THE OTHER HAND, THE LD. DR HAS RELIED UPON TH E IMPUGNED ORDER AND SUBMITTED THAT DESPITE VARIOUS REMINDERS, THE ASSES SEE DID NOT APPEAR BEFORE THE DIT AND ALSO NOT FILED THE REQUISITE RECORDS FOR VERIFI CATION AND FOR SATISFACTION ABOUT THE GENUINENESS OF THE ACTIVITIES FOR GRANTING THE RENE WAL CERTIFICATE U/S 80G. 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD, WE NOTE THAT THE ASSESSEE MOVED AN APPLICAT ION FOR RENEWAL OF CERTIFICATE U/S 80G ON 11.01.2007. AFTER ISSUING THE INITIAL NOTICE ON 26.4.2007, THE DIT DID NOT PROCEED WITH THE MATTER TILL THE END OF THE YEAR 20 10 AND ONLY IN THE MONTH OF DECEMBER 2010, A REMINDER WAS ISSUED TO THE ASSESSE E. THUS THE MATTER WAS KEPT PENDING FOR ABOUT THREE YEARS WITHOUT ANY PROCEEDIN G BEING CONDUCTED. WE FURTHER NOTE THAT THE REQUISITE DOCUMENTS FILED BY THE ASSE SSEE VIDE LETTER DATED 27.11.2006 RECEIVED IN THE OFFICE OF DIT ON 11.01.2007. THEREF ORE, IT IS MANIFEST FROM THE RECORD THAT THE IMPUGNED ORDER WAS PASSED WITHOUT CONSIDER ING THE RELEVANT DETAILS AND DOCUMENTS FILED BY THE ASSESSEE. HOWEVER, THE CURR ENT RECORD WAS NOT AVAILABLE BEFORE THE DIT BECAUSE IT WAS ALREADY FILED IN THE YEAR 2007 AND NO PROCEEDINGS WERE THE BOMBAY CITY EDUCATIONAL SOCIETY, 3 | P A G E CONDUCTED TILL DECEMBER 2010. ACCORDINGLY, IN THE F ACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT THE IMPUGNED ORDER WA S PASSED DE HORS THE RELEVANT MATERIAL AVAILABLE ON RECORD AND FURTHER WITHOUT GI VING A PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE TO REPRESENT ITS CASE. HEN CE THE IMPUGNED ORDER IS SET ASIDE AND REMANDED TO THE RECORD OF DIT WITH THE DIRECTIO N TO GIVE A PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE AND THEN PASS A FRESH ORDER AFTER CONSIDERING THE RELEVANT RECORD ALREADY AVAILABLE AS WELL AS TO BE FILED BY THE ASSESSEE. 5. IN THE RESULT APPEALS OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF DECEMBER 2014. SD/- SD/- (D. KARUNAKARA RAO) (VIJAY PAL RAO) (ACCOUNTANT MEMBER/ YS[KK LNL; YS[KK LNL; YS[KK LNL; YS[KK LNL; ) (JUDICIAL MEMBER/ U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; ) MUMBAI DATED 16-12-2014 SKS SR. P.S, COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI