Shri Varadamahishi Bhojyasanam Trust, CHENNAI V. CIT, CHENNAI

ITA 172/CHNY/2016

• Counselvise Citation: [2016] 128 COUNSELVISE.COM (IT) 9752 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 01-02-2016
• Court: TRIBUNAL
• Department Lawyers: PATHLAVATH PEERYA
• Assessee Lawyers: R. BHAVYA
• Keywords: Opportunity of being heard; Principle of natural justice; Condonation of delay; Set aside
• Section: 12AA; 22

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU R L REDDY , JUDICIAL MEMBER ./ I T.A. NO. 172 /MDS/201 6 / ASSESSMENT YEAR :20 1 5 - 1 6 SHRI VARADAMAHISHI BHOJYASANAM TRUST, 19, ANAIKATTI STREET, LITTLE KANCHEEPURAM 631 501. [PAN: AANTS7328A ] VS. THE COMMISSIONER OF INCOME TAX [EXEMP TIONS] , AAYAKAR BHAVAN, ANNEXE III FLOOR, 121, M.G. ROAD, CHENNAI 600 034 . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : MS. R. BHAVYA , ADVOCATE / RESPONDENT BY : SHRI PATHLAVATH PEERY A , CIT / DATE OF HEARING : 06 . 0 9 .201 6 / DATE OF P RONOUNCEMENT : 23 . 0 9 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMM ISSIONER OF INCOME TAX ( EXEMPTIONS) , CHENNAI , DATED 3 0 . 09 .20 1 5 PASSED UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] REJECTING GRANT OF REGISTRATION . 2. THE APPEAL OF THE ASSESSEE IS FOUND TO HAVE BEEN FILED LATE BY 22 DAYS BEFORE THE TR IBUNAL. BY FILING AN AFFIDAVIT FOR CONDONATION OF DELAY IN I.T.A. NO . 1 7 2 /M/ 16 2 FILING THE APPEAL BEFORE THE TRIBUNAL, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(E) S ORDER DATED 30.09.2015 WAS RECEIVED BY THE ASSESSEE TRUST ON 11.11.2015 AND FURTHER APPEA L SHOULD HAVE BEEN FILED ON OR BEFORE 10.01.20916, BUT THE APPEAL WAS FILED ON 01.02.2016 RESULTING IN A DELAY OF 22 DAYS. SHE FURTHER SUBMITTED THAT THE ASSESSEE TRUST WAS NEWLY CONSTITUTED AND WAS IDENTIFYING TO DEAL WITH THE ISSUES RELATING TO INCOME TA X MATTER. AFTER JOINING THE INCUMBENT, WHILE SCRUTINIZING THE CORRESPONDENCE, FOUND THAT FURTHER APPEAL AGAINST THE ORDER OF THE LD. CIT(E) WAS NOT PREFERRED AND THUS, RUSHED TO THE AUDITOR FOR PREPARATION OF APPEAL FOR FILING BEFORE THE TRIBUNAL. IT WAS A LSO SUBMITTED THAT DELAY IN FILING OF THE APPEAL IS NEITHER WILFUL NOR WANTON AND PRAYED THAT THE SHORT DELAY MAY BE CONDONED AND ADMITTED THE APPEAL FOR HEARING. THE LD. DR DID NOT SERIOUSLY OBJECT TO THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE. A CCORDINGLY, WE CONDONE THE DELAY OF 22 DAYS IN FILING THE APPEAL AND ADMIT THE APPEAL FOR HEARING. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A TRUST BY CONSTITUTING A TRUST DEED DATED 10.02.2014 AND FILED AN APPLICATION IN FORM 10A FOR GRANT O F REGISTRATION UNDER SECTION 12AA OF THE ACT ON 09.03.2015. WHILE PROCESSING THE APPLICATION, IT WAS NOTICED THAT CERTAIN EXPLANATIONS/CLARIFICATIONS WERE REQUIRED TO BE FILED TO DECIDE GRANT OF REGISTRATION. ACCORDINGLY, THE ASSESSEE WAS REQUESTED TO OFFE R ITS CLARIFICATIONS/EXPLANATIONS ON CERTAIN POINTS. SINCE I.T.A. NO . 1 7 2 /M/ 16 3 THERE WAS NO RESPONSE FROM THE TRUST, THE LD. CIT(E) HELD THAT IN THE ABSENCE OF INFORMATION CALLED, THE TRUST DOES NOT QUALIFY FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT AND ACCORDING LY, REJECTED THE APPLICATION. 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AND MAINLY CONTENDED THAT THERE WAS SHUFFLING IN THE DEPARTMENT AND HENCE THE ASSESSEE COULD NOT ABLE TO MEET THE CONCERN AUTHORITIES TO PROVIDE THE REQUISITE DETA ILS. THE LD. COUNSEL FOR THE ASSESSEE HAS PLEADED THAT SUFFICIENT OPPORTUNITIES WERE NOT GIVEN TO THE ASSESSEE AND PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE. 5. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDER OF THE LD. CIT(E). 6 . WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE ASSESSEE TRUST FILED ITS APPLICATION IN FORM 10A FOR REGISTRATION UNDER SECTION 12AA OF THE ACT ON 09.03.2015. VIDE LETTER DATED 12 .08.2015, THE ASSESSEE WAS ASKED TO OFFER ITS CLARIFICATIONS/EXPLANATIONS ON CERTAIN POINTS. THE CASE WAS POSTED FOR HEARING ON 02.09.2015 BY THE LD. CIT(E) VIDE HIS LETTER DATED 19.08.2015 AND ADMITTEDLY, NO MORE OPPORTUNITY WAS GIVEN TO THE ASSESSEE. BEF ORE US, BY RELYING ON THE GROUNDS OF APPEAL, THE LD. COUNSEL FOR THE ASSESSEE STRONGLY ARGUED THAT SINCE THERE WAS SHUFFLING IN THE DEPARTMENT, THE ASSESSEE COULD NOT ABLE MEET THE CONCERN AUTHORITIES AND PROVIDE THE REQUISITE DETAILS AND I.T.A. NO . 1 7 2 /M/ 16 4 PLEADED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE. UNDER THE ABOVE FACTS AND CIRCUMSTANCES AND IN THE INTEREST OF NATURAL JUSTICE, WE SET ASIDE THE ORDER OF THE LD. CIT(E) AND DIRECT HIM TO GIVEN ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, WHO SHALL FURNISH ALL DETAILS AS MAY BE REQUIRED FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 23 RD SEPTEMBER, 2016 AT CHENNAI. SD/ - SD/ - (A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 23 . 0 9 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.