Keshab Smarak Sanskriti Surabhi, Kachar V. CIT(Exemption), Kolkata, Koklata

ITA 1822/KOL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6563 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 30-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHRIP K SRIHANI
• Assessee Lawyers: V N PUROHIT; H V BHARDWAJ ACA
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A, BENCH KOLKATA BEFORE SHRI A. T. VARKEY, JM &DR. A.L.SAINI, AM ./ITA NOS.1822/KOL/2017 KESHAB SMARAK SANSKRITI SURABHI KESAB NIKETAN, S.D. LANE, AMBICAPALLY, SILCHER, DIST KACHAR (ASSAM), PIN 788004. VS. C.I.T EXEMPTION, KOLKATA 10B, MIDDLETON ROW, KOLKATA 700071. ./ ./PAN/GIR NO. : AAATK 8981 C (APPELLANT) .. (RESPONDENT) APPELLANT BY :SHRI V.N. PUROHIT, FCA & H.V. BHARDWAJ, ACA RESPONDENT BY :SHRIP.K. SRIHANI, CIT(DR) / DATE OF HEARING : 09/04/2018 /DATE OF PRONOUNCEMENT : 20/04/2018 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, IS DIRECTED AGAINST THEORDER PASSED BY THE COMMISSIONER OF INCOME TAX (EXEMPTION) [HEREINAFTER REFERRED TO AS THE CIT(EXEMPTION)], KOLKATA, UNDER SECTION 80G OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT), DATED 27.03.2017. 2.THE APPEAL FILED BY THE ASSESSEE TRUST, IS BARRED BY LIMITATION BY 73 DAYS. THE ASSESSEE HAS MOVED A PETITION REQUESTING THE BENCH TO CONDONE THE DELAY. WE HEARD THE PARTY ON THIS PRELIMINARY ISSUE. HAVING REGARD TO THE REASONS GIVEN IN THE PETITION, WE CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING. KESHAB SMARAK SANSKRITI SURABHI ITA NOS.1822/KOL/2017 PAGE | 2 3. IN THIS APPEAL, THE ASSESSEE IS CHALLENGING THE ACTION OF THE LD. CIT(EXEMPTION) DENYING OF APPROVAL U/S 80G OF THE INCOME TAX ACT, 1961. 4. THE ASSESSEE TRUST CAME INTO EXISTENCE VIDE CERTIFICATE OF REGISTRATION DATED 25.01.1989. THE AFORESAID SOCIETY FILED AN APPLICATION IN FORM 10G FOR APPROVAL OF EXEMPTION U/S 80G OF THE ACT, 1961, ON 07.10.2016. THELD CIT(EXEMPTION) HAS DENIED APPROVAL U/S 80G OF THE ACT STATING THAT ASSESSEES CASE IS NOT A FIT CASE FOR APPROVAL U/S 80G OF THE ACT. THEREFORE, CONSIDERING THE ABOVE REASON, THE LD. CIT(EXEMPTION) REJECTED THE APPLICATION FOR APPROVAL U/S 80G OF THE ACT. 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(EXEMPTION), THE ASSESSEE IS IN APPEAL BEFORE US. 6.WE HAVE GIVEN A CAREFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD AND AFTER HEARING THE LD. DR FOR THE REVENUE, WE NOTE THAT LD CIT(E) HAS PASSED THE ORDER REJECTING APPROVAL U/S 80G OF THE INCOME TAX ACT 1961, MERELY STATING THAT HE WAS OF THE OPINION THAT THIS IS NOT A FIT CASE FOR APPROVAL U/S 80G OF THE INCOME TAX ACT. HAVING GONE THROUGH THE ORDER OF LD. CIT(E), WE NOTE THAT THE REJECTION OF APPROVAL UNDER SECTION 80G OF THE INCOME TAX ACT, IS WITHOUT ASSIGNING ANY REASON OR WITHOUT PASSING SPEAKING ORDER. THE LD. CIT(E) DID NOT EXPLAIN THE REASONS AS TO WHY THE ASSESSEE`S CASE IS NOT A FIT CASE FOR APPROVAL UNDER SECTION 80G OF THE ACT. THE LD COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE US THAT REGISTRATION CERTIFICATE OF THE TRUST UNDER SECTION 12AA IS IN FORCE AND HAS NOT BEEN CANCELLED BY THE LD CIT (E ). THE ASSESSEE TRUST HAS BEEN CARRYING ON CHARITABLE ACTIVITIES AS PER ITS OBJECT CLAUSE AND IN SPITE OF THIS, LD. CIT(E) HAS DENIED APPROVAL UNDER SECTION 80G OF THE ACT WITHOUT ASSIGNING ANY REASONS. KESHAB SMARAK SANSKRITI SURABHI ITA NOS.1822/KOL/2017 PAGE | 3 WE NOTE THAT ASSESSEE`S TRUST REGISTRATION UNDER SECTION 12AA HAS NOT BEEN CANCELLED THEREFORE A REASONABLE PRESUMPTION CAN BE DRAWN THAT ASSESSEES TRUST IS CARRYING ON CHARITABLE ACTIVITIES WITHIN ITS OBJECTS. WE ARE OF THE OPINION THAT SO FAR AS GRANT OF REGISTRATION U/S 12AA OF THE ACT IS CONCERNED, THE CIT(EXEMPTION)S JURISDICTION IS ONLY TO VERIFY THE OBJECTIVES OF THE INSTITUTION AND GENUINENESS OF THE ACTIVITIES, MEANING THEREBY THAT, HE HAS TO SATISFY HIMSELF THAT THE OBJECTS ARE CHARITABLE IN NATURE AND THE ACTIVITIES BEING CARRIED ON OR TO BE CARRIED ON ARE GENUINE, MEANING THEREBY THAT, THEY ARE IN CONSONANCE FORACHIEVING OF CHARITABLE OBJECT AND NOTHING ELSE. CONSIDERING THE FACTUAL POSITION EXPLAINED ABOVE, WE ARE OF THE VIEW THAT THIS ISSUE NEEDS TO BE EXAMINED BY THE LD. CIT(E) THAT WHY THE ASSESSEE`S CASE IS NOT FIT FOR APPROVAL UNDER SECTION 80G OF THE ACT. THEREFORE, WE DIRECT THE LDCIT(E ) TO EXAMINE THE OBJECTIVES OF THE TRUST AND THE FACT THAT REGISTRATION CERTIFICATE OF THE TRUST U/S 12AA IS IN FORCE, AND THEN, IN THAT CIRCUMSTANCES WHY AND HOW THE APPROVAL U/S 80G OF THE ACT SHOULD NOT BE GRANTED. THEREFORE, WE DEEM IT FIT AND APPROPRIATE IN THE INTEREST OF JUSTICE AND FAIR PLAY TO GIVE DIRECTIONS TO CIT(E) TO ADJUDICATE THE ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 20/04/2018. SD/ - (A. T. VARKEY) SD/ - (A.L. SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; / DATE: 20/04/2018 ( RS, SPS) KESHAB SMARAK SANSKRITI SURABHI ITA NOS.1822/KOL/2017 PAGE | 4 / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/D.D.O, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. / THE APPELLANT- KESHAB SMARAK SANSKRITI SURABHI 2. / THE RESPONDENT- C.I.T EXEMPTION, KOLKATA 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, KOLKATA 6. [ / GUARD FILE.