M/s. Uttam Chordia Charitable Trust, Bangalore V. The Commissioner Of Income Tax (Exemptions), Bangalore

ITA 1659/BANG/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3762 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 17-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Charitable institution; Opportunity of being heard
• Section: 80G; 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI. B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1659/BANG/2019 ASSESSMENT YEAR : UTTAM CHORDIA CHARITABLE TRUST, NO.48, 4 TH FLOOR, MOHAN MANSION, KASTURBA ROAD, BENGALURU-560 091. PAN AAATU 8513 G VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI SUMANLUNKAR, C.A RESPONDENT BY : SHRI MUZAFFAR HUSSAIN, CIT (DR) DATE OF HEARING : 22-10-2020 DATE OF PRONOUNCEMENT : 03-11-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AG AINST ORDER DATED 28/06/2019 PASSED BY LD. CIT (E), BANGALORE D ENYING RECOGNITION UNDER SECTION 80 G OF THE ACT. 2. ASSESSEE IS A TRUST CONSTITUTED UNDER TRUST DEED DATED 23/02/2018. IT IS SUBMITTED THAT, APPLICATION FOR G RANT OF REGISTRATION UNDER SECTION 12 AA OF THE ACT WAS FIL ED ON 26/03/2018 AND RECOGNITION UNDER SECTION 12AA THE A CT WAS ISSUED ON 17/09/2019. IT IS SUBMITTED THAT VARIOUS DETAILS WERE PAGE 2 OF 4 ITA NO.1659/BANG/2019 CALLED FOR BY LD.CIT(E) VIDE NOTICE DATED 06/06/201 8. ASSESSEE COULD FURNISH ALL DETAILS VIDE ITS LETTER DATED 17/ 06/2019. IT HAS BEEN SUBMITTED BY LD.AR THAT, THERE WAS NO FURTHER COMMUNICATION FROM LD.CIT(E) HOWEVER, DENIED REGIST RATION UNDER SECTION 80G VIDE ORDER DATED 28/06/2019. IT H AS BEEN SUBMITTED THAT LD. CIT (A) REJECTED THE APPLICATION FOR NON- COMPLIANCE WITHOUT CONSIDERING THE SUBMISSIONS FILE D. 3. LD.AR PLACED RELIANCE ON DECISION OF COORDINATE BENCH OF TRIBUNAL IN CASE OF M/S MANIPAL ALIMONY OF NPHROLOGY TRUST VS CIT IN ITA NO. 548 AND 549/B/2013 WHEREIN, THIS TRIBUNAL FOLLOWING DECISION OF HONBLE KARNATAKA HIGH COURT IN CASE OF DDIT (E) VS MEENAKSHI ENDOWMENT TRUST REPORTED IN 354 ITR 219 , HELD THAT AT THE TIME OF GRANT OF REGISTRATION UNDER SECTION 12A OF THE ACT AS WELL AS APPROVAL UNDER SECTION 80G(5) (VI) OF THE A CT, ABSENCE OF ACTIVITIES OF THE TRUST CANNOT BE THE BASIS TO REFU SE THE APPROVAL. ON THE CONTRARY LD.SR.DR RELIED ON ORDERS PASSED BY LD.CIT(A). 4. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SID ES IN LIGHT OF RECORDS PLACED BEFORE US. WE ARE IN AGREEM ENT WITH THE CONTENTIONS PUT FORTH BY LD.AR. THE REASONS ASSIGNE D FOR NOT GRANTING APPROVAL UNDER SECTION 80G(5)(VI) IS DIREC TLY CONTRADICTORY TO THE ACTION OF LD.CIT(E) IN GRANTIN G REGISTRATION UNDER SECTION 12A OF THE ACT. WE THEREFORE SET ASID E THE ORDER OF LD.CIT(E) AND REMAND THE QUESTION OF GRANT OF APPRO VAL UNDER SECTION 80G(5) (VI) OF THE ACT TO LD.CIT(E) FOR FRE SH CONSIDERATION IN THE LIGHT OF THE DECISIONS REFERRED TO BY LD.AR. NEEDLESS TO SAY THAT, PROPER OPPORTUNITY OF BEING HEARD SHOULD BE G RANTED TO ASSESSEE. ASSESSEE IS ALSO DIRECTED TO FILE ALL REL EVANT DETAILS AS CALLED UPON. PAGE 3 OF 4 ITA NO.1659/BANG/2019 ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD NOV, 2020. SD/- SD/- (B. R. BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL ME MBER BANGALORE, DATED, THE 3 RD NOV, 2020. /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE. PAGE 4 OF 4 ITA NO.1659/BANG/2019 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -11-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -11-2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -11-2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -11-2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -11-2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -11-2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -11-2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS