All India Sai Samag (Regd.), CHENNAI V. DIT, CHENNAI

ITA 1777/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4996 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 07-06-2011
• Assessment Year: misc
• Appeal Filed On: 21-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI
• Assessee Lawyers: V RAMACHANDRAN; DR ANITA SUMANTH
• Keywords: Principle of natural justice
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH D : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO. 1777/MDS/2010 ASSESSMENT YEAR : NA ALL INDIA SAI SAMAJ(REGD) 51A, ALAMELUMANGAPURAM MYLAPORE CHENNAI 600 004 VS THE DIRECTOR OF INCOME- TAX(EXEMPTIONS) CHENNAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.RAMACHANDRAN & DR. ANITA SUMANTH RESPONDENT BY : SHRI ANIRUDH RAI O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE-SOCIETY, IS DIRECTE D AGAINST THE ORDER OF THE DIT(E), CHENNAI, DATED 29.9.2010. 2. THE ASSESSEE-SOCIETY HAD APPLIED FOR REGISTRATIO N U/S 12AA OF THE ACT IN FORM NO.10A ON 31.3.2010. DURING PROCES SING OF THIS APPLICATION, THE AUTHORITY NOTED CERTAIN DEFICIENCI ES WHICH REQUIRED CERTAIN CLARIFICATIONS/EXPLANATIONS. THEREFORE, VI DE OFFICE LETTER DATED 27.8.2010, THE ASSESSEE-SOCIETY WAS REQUESTED TO OF FER ITS EXPLANATION AND ALSO TO FURNISH ADDITIONAL INFORMATION AS CALLE D FOR IN THAT LETTER. ITA 1777/10 :- 2 -: THE CASE WAS POSTED FOR HEARING ON 30.9.2010. THIS EXERCISE WAS DONE BY THE DIT(E) AT THE FAG END OF LAPSE OF SIX M ONTHS FROM THE DATE OF APPLICATION. BUT, FINALLY, HE REJECTED THE APPL ICATION. AGAINST THIS ACTION OF THE DIT(E), THE ASSESSEE-SOCIETY IS IN AP PEAL BEFORE US BY RAISING FOLLOWING GROUNDS: A. THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMP TIONS) DATED 29.9.2010 REJECTING THE APPELLANTS APPLICATI ON FOR REGISTRATION U/S 12AA OF THE INCOME-TAX ACT, IS WRO NG AND OPPOSED TO LAW, AGAINST THE WEIGHT OF EVIDENCE AND IS VITIATED BY NON-APPLICATION OF MIND TO THE RELEVANT FACTS. THE ORDER DATED 29.9.2010 IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. B. THE APPELLANT HAS SATISFIED ALL THE REQUIREME NTS FOR REGISTRATION AND ACCORDINGLY, OUGHT TO HAVE BEEN GR ANTED REGISTRATION U/S 12AA. C. THE ORDER OF THE DIRECTOR OF INCOME TAX (EX EMPTIONS) IS IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTIC E. THE LETTER DATED 27.8.2010 REFERRED TO IN THE IMPUGNED ORDER H AS NOT BEEN RECEIVED BY THE APPELLANT. IN FACT, ALL RELEV ANT PARTICULARS HAVE BEEN FURNISHED BY THE APPELLANT A LONGWITH THE APPLICATION AND THE DISPOSAL OF THE APPLICATION WITHOUT REFERENCE TO THE SAME IS ERRONEOUS AND ILLEGAL. D. THE DIRECTOR OF INCOME TAX (EXEMPTIONS) ERRS IN STATING THAT THERE WAS NO RESPONSE FROM THE APPELLA NT IN SO FAR AS NO OPPORTUNITY WAS GRANTED TO IT TO APPEAR A ND STATE ITS CASE. THE APPLICATION WAS FILED IN MARCH 2010 AND A HEARING IS STATED TO HAVE BEEN POSTED ON 13.9.2010, TOWARDS THE FAG END OF THE LIMITATION. THE APPELLA NT THUS, DID NOT HAVE NOTICE AS REQUIRED BY LAW, MUCH, EFFEC TIVE NOTICE. E. THE IMPUGNED ORDER IS BAD IN LAW IN SO FAR A S NO PROPOSAL TO REJECT THE APPLICATION HAS BEEN ISSUED PRIOR TO THE PASSING OF THE SAME. ITA 1777/10 :- 3 -: 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE CAREFULLY EXAMINED THE ENTIRE RECORD AVAILABLE BEFORE US. UN DISPUTEDLY, THE OBJECTS OF THE SOCIETY ARE CHARITABLE IN NATURE. T HE INFORMATION WHICH THE DIT(E) REQUIRED SEEMS TO BE SIMPLY VAGUE AND NO BODY CAN MAKE OUT AS TO WHAT HE WANTED TO CLARIFY FOR PROCESSING THE APPLICATION VIDE WHICH REGISTRATION U/S 12AA WAS SOUGHT. HE HAS ALS O NOT MENTIONED AS TO WHAT WERE THE DEFICIENCIES WHICH HE NOTICED I N THE APPLICATION. IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, W E ARE OF THE OPINION THAT THERE IS NO REASON TO DENY REGISTRATION TO TH E ASSESSEE-SOCIETY U/S 12AA OF THE ACT. THEREFORE, WE DIRECT THE DIT( E) TO GRANT REGISTRATION U/S 12AA OF THE ACT TO THE ASSESSEE-SO CIETY. 4. IN THE RESULT, THE APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 7.6.2011. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 7 TH JUNE, 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR