Vidyaranya Seva Sangha, Hubballi V. The Commissioner Of Income Tax (Exemptions), Bengaluru

ITA 1769/BANG/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0565 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-07-2021
• Assessment Year: 2019-2020
• Appeal Filed On: 13-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVARATHNA KUMAR BEN GALURU
• Keywords: Principle of natural justice
• Section: 12A; 12AA; 6(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI , JUDICIAL MEMBER IT A NO. 1 7 69/BANG/2019 ASSESSMENT YEAR: N.A. VIDYARANYA SEVA SANGH, VANITE LADIES HOSTEL, SHANTI COLONY, VISHWESHWARA NAGAR, HUBBALI 580 032. PAN: AAAJS 4355 C VS. THE COMMISSIONER OF INCOME-TAX (EXEMPTIONS), BENGALURU. APPELLANT RESPONDENT APPELLANT BY : S MT. SUMAN LUNKAR, CA RESPONDENT BY : SHRI DEVARATHNA KUMAR, CIT(DR)(ITAT), BEN GALURU. DATE OF HEARING : 15 . 07 .202 1 DATE OF PRONOUNCEMENT : 15 .07 .202 1 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL IS BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), [CIT(E)] B ANGALORE PASSED U/S. 12AA(1)(B)(II) OF THE INCOME-TAX ACT, 1961 [TH E ACT]. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- 1. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP TIONS) HAS ERRED IN PASSING THE IMPUGNED ORDER IN THE MANN ER PASSED BY HIM. THE ORDER PASSED BEING HAD IN LAW, AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND EQUITY AND IS LIABLE TO BE QUAS HED. ITA NO. 1769/BANG/2019 PAGE 2 OF 3 2.1 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTI ONS) HAS ERRED IN REJECTING THE APPLICATION FILED FOR RE GISTRATION U/S. 12AA OF THE LT. ACT, 1961, ON THE GROUNDS THAT: I) THE APPELLANT IS HAVING SURPLUS YEAR AFTER YEARS . II) THE OBJECT MENTIONED IN THE BYE LAW DOES NOT FI T INTO THE DEFINITION OF CHARITY. III) IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS O F THE OBJECTS AND THE ACTIVITIES OF THE APPELLANT IV) THE REGISTRATION GRANTED U/S 12A OF THE ACT WAS CANCELLED VIDE ORDER DATED 25/03/2014 ON PROPER APPRECIATION OF FACTS OF THE CASE AND THE LAW APPLICABLE, THE APPELLANT IS ENTITLED FOR REGISTRAT ION AND HENCE, THE CONCLUSION DRAWN BEING CONTRARY TO FACTS AND LAW AP PLICABLE ARE TO BE DISREGARDED AND THE APPELLANT BE GRANTED REGI STRATION U/S. 12AA OF I.T. ACT, 1961. 2.2 ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPELLANT IS ELIGIBLE FOR THE REGISTRATION U/S. 12AA OF THE I.T. ACT, 1961 AND SAME IS TO BE GRANTED TO IT. 3. IN VIEW OF THE ABOVE AND ON OTHER GROUNDS TO BE ADDUCED AT THE TIME OF HEARING, IT IS REQUESTED THAT THE IM PUGNED ORDER PASSED BE QUASHED AND THE APPELLANT BE GRANTED THE REGISTRATION U/S. 12AA OF THE I.T. ACT, 1961 AS APPLIED FOR. 3. THE ASSESSEE TRUST APPLIED FOR REGISTRATION U/S. 12AA BY FILING FORM 10A ON 3.12.2018. VARIOUS DOCUMENTS CALLED FOR WER E FURNISHED BY THE ASSESSEE. THE CIT(E) REJECTED THE APPLICATION FI LED BY THE ASSESSEE ON THE REASON THAT BYE LAW 6(6) STATED THAT THE FUNDS AND THE INCOME OF THE TRUST/SOCIETY SHALL BE SOLELY UTILIZED FOR PAYMENT TO THE TRUSTEES/MEMBER BY WAY OF PROFIT, INTEREST, DIVIDEND, ETC. ACCORDING TO THE CIT(E), SINCE THIS OBJECT DOES NOT FIT INTO THE DEFINITION OF CHARITY AS ENVISAGED IN THE ACT, IT WAS NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE O BJECTS AND THE ACTIVITIES ITA NO. 1769/BANG/2019 PAGE 3 OF 3 OF THE TRUST. ACCORDINGLY, HE REJECTED GRANT OF RE GISTRATION. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. THE LD. AR SUBMITTED THAT THE ASSESSEE AMENDED THE BYE LAWS AND OBJECTIONABLE PARTS HAVE BEEN REMOVED IN THE BYE LA W, WHICH WAS DULY APPROVED BY THE REGISTRAR OF SOCIETIES VIDE ENDORSE MENT DATED 29.06.2019, A COPY OF WHICH IS PLACED AT PAGE 47 OF THE PB. IN OUR OPINION, IF THE ASSESSEE CARRIED OUT DUE AMENDMENT IN ITS BY E LAWS, THEN THE SAME REQUIRES RE-EXAMINATION BY THE CIT(E). ACCORDINGL Y, WE REMIT THE ISSUE IN DISPUTE TO THE FILE OF THE CIT(E) FOR RECONSIDERATI ON AND DECISION IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 15 TH DAY OF JULY, 2021. SD/- SD/- ( BEENA PILLAI ) ( CHANDRA POOJARI ) JUDICIAL MEMBER AC COUNTANT MEMBER BANGALORE, DATED, THE 15 TH JULY, 2021. / DESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.