Sundargarh Zilla Maheswari Trust, Rourkela V. CIT, Sambalpur

ITA 174/CTK/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0757 (ITAT-CUTTACK)
• Duration Of Justice: 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2011
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 10-05-2010
• Court: TRIBUNAL
• Department Lawyers: A K MOHAPATRA
• Assessee Lawyers: D PATIAR
• Keywords: Opportunity of being heard
• Section: 80G

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , S HRI K.S.S.PRASAD RAO , JUDICIAL MEMBER / I.T.A.NO. 174/ CTK /2010 / ASSESSMENT YEAR 2009 - 10 SUNDARGARH ZILLA MAHESWARI TRUST, MAHESWARI BHAWAN, BIRAJAPALI, ROURKELA. PAN: AAATS 5120 R - - - VERSUS - COMMISSIONER OF INCOME - TAX , SAMBALPUR. ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI D.PATI,AR / FOR THE RESPONDENT: / SHRI A.K.MOHAPATRA, DR / ORDER . . . , , SHRI K. S.S.PRASAD RAO, JUDICIAL MEMBER . IN THIS APPEAL, THE ASSESSEE AGITATES AGAINST ORDER DT.19.3.2010 OF THE COMMISSIONER OF INCOME - TAX IN NOT GRANTING REGISTRATION UNDER SECTION 80G OF THE INCOME - TAX ACT,1961. 2. THE ASSESSEE TRUST CONSTRUCTED A KALYAN MAN DOP KNOWN AS MAHESWARI BHAWAN AT ROURKELA OUT OF THE DONATIONS RECEIVED BY THE TRUST DURING THE AYS 2006 - 07, 2007 - 08 AND ASSESSMENT YEAR 2008 - 09, PURPORTED TO BE USED FOR ALL COMMUNITY MARRIAGE FUNCTIONS FOR HIRING AT NOMINAL CHARGES. THE LEARNED CIT OBS ERVED THAT THE ASSESSEE DID NOT FURNISH RECEIPT & EXPENDITURE ACCOUNTS FOR ANY OF THE YEARS MENTIONED ABOVE, AND AS SUCH THOSE COULD NOT BE VERIFIED. ON REFERENCE, THE DCIT, ROURKELA CIRCLE FAILED TO OBTAIN ANY COOPERATION FROM THE TRUST AND RECOMMENCED TH E CASE NOT TO BE CONSIDERED FOR BENEFIT U/S.80G. CONSIDERING THE REPORT OF THE DCIT, THE LEARNED CIT HELD THAT THE ASSESSEE TRUST CANNOT BE TREATED AS CHARITABLE AND I.T.A.NO. 174/CTK/2010 2 NON - PROFIT ORGANIZATION IN NATURE AND THEREFORE, THE LEARNED CIT REJECTED THE APPLICATION OF THE ASSESSEE FOR GRANT OF RENEWAL OF EXEMPTION U/S.80G(5)(VI) OF THE ACT. 3. THE LEARNED AR OF THE ASSESSEE CONTENDED BEFORE US THAT THE LEARNED CIT IS NOT JUSTIFIED IN REJECTING THE REQUEST FOR APPROVAL OF EXEMPTION U/S.80G ON EXTRANEOUS CONSIDERATION WHICH IS DE HORS OF THE RECORD AND WITHOUT OPPORTUNITY OF BEING HEARD. HE FURNISHED COPIES OF AUDITED BALANCE SHEET, INCOME EXPENDITURE AND RECEIPT PAYMENT ACCOUNT FOR THE YEARS ENDING 341.3.2006, 31.3.2007 AND 31.3.2008 ALONG WITH AUDIT REPORTS AND SUBMI TTED THAT THE ASSESSEE TRUST FULFILLS ALL THE CONDITIONS SO AS TO BE ENTITLED FOR EXEMPTION U/S.80G. THE LEARNED DR, ON THE OTHER HAND, SUPPORTED THE IMPUGNED ORDER OF THE LEARNED CIT. 4. HAVING HEARD BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE O N RECORD, WE FIND THAT THE ASSESSEES CASE COULD NOT BE EXAMINED EITHER BY THE DCIT OR THE LEARNED CIT FOR WANT OF PROPER OPPORTUNITY OF BEING HEARD. THE ASSESSEE HAS PRODUCED BEFORE US AUDIT REPORTS AND OTHER ACCOUNTS AS MENTIONED ABOVE, WHICH IN OUR CONS IDERED VIEW REQUIRES EXAMINATION BY THE LEARNED CIT WHILE DECIDING THE ENTITLEMENT OF BENEFIT U/S.80G FOR THE ENDS OF NATURAL JSUTICE. THEREFORE, WE SET ASIDE THE IMPUGNED ORDER OF THE LEARNED CIT AND DIRECT THE LEARNED CIT CONSIDER THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S.80G (5)(VI) OF THE ACT AS IN ACCORDANCE WITH LAW AFTER PROPER EXAMINATION OF THE ACCOUNTS AND AUDIT REPORTS. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE WITH THE DEPARTMENT IN THIS MATTER. I.T.A.NO. 174/CTK/2010 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE TRUST IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 14 TH MARCH, 2011 S D/ - S D/ - ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( . . . ) , (K.S.S.PRASAD RAO), JUDICIAL MEMBER. ( ) DATE: 14 TH MARCH, 2011 - COPY OF THE ORDER FORWARDED TO: 1 . / TH E APPELLANT : SUNDARGARH ZILLA MAHESWARI TRUST, MAHESWARI BHAWAN, BIRAJAPALI, ROURKELA. 2 / THE RESPONDENT: COMMISSIONER OF INCOME - TAX, SAMBALPUR. 3 . / THE CIT, 4 . ( )/ THE CIT(A), 5 . / DR, CUTTACK B ENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, [ ] SENIOR PRIVATE SECRETARY ( ), ( H.K.PADHEE ), SENIOR.PRIVATE SECRETARY.