M/s Shri Chaitnya Dandabhanga Leelakunjashram, Puri V. CIT, Bhubaneswar

ITA 183/CTK/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52362 (ITAT-CUTTACK)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2011
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 04-08-2011
• Assessment Year: misc
• Appeal Filed On: 04-04-2011
• Court: TRIBUNAL
• Department Lawyers: A BHATTACHARJEEDR
• Assessee Lawyers: B PANDAAR
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE : HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER, AND HONBLE SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER. ITA NO. 183/CTK/2011 M/S.SHRI CHAITNYA DANDABHANGA LEELAKUNJASHRAM,CHANDANPUR,SHREE JAGANNATH PURI, PURI 752 012. PAN: AAITS 1367 C VERSUS COMMISSIONER OF INCOME - TAX, BHUBANESWAR. (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI B.PANDA,AR FOR THE RESPONDENT SHRI A.BHATTACHARJEE,DR ORDER SHRI K.K.GUPTA, ACCOUNTANT MEMBER : THIS APPEAL BY THE ASSESSEE IS AGAINST ORDER DT.30.6.2010 OF THE COMMISSIONER OF INCOME - TAX, BHUBANESWAR IN REJECTING THE APPLICATION SEEKING GRANT OF REGISTRATION/S.12AA OF THE INCOME - TAX ACT,1961. 2. THE APPEAL HAS BEEN FILED LATE BY 127 DAYS FOR WHICH THE A SSESSEE HAS FILED A CONDONATION PETITION AND ALSO SUBMITTED AN AFFIDAVIT OF THE SECRETARY OF THE ASSESSEE - SOCIETY STATING THEREIN THE DELAY IN FILING THE APPEAL WAS DUE TO HIS ILLNESS FROM 1.11.2010 TO 25.3.2011 DURING WHICH PERIOD HE WAS BEDRIDDEN AND UND ER TREATMENT UNDER DR.B.K.SAHU. CONSIDERING THE CIRCUMSTANCES STATED IN THE CONDONATION PETITION AS WELL AS THE AFFIDAVIT AND IN ABSENCE OF ANY CONTRARY MATERIAL BROUGHT ON RECORD BY THE DEPARTMENT NEGATING THE SAME, WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE WAS PREVENTED WITH SUFFICIENT CAUSE FOR BELATED FILING OF THE APPEAL. HENCE, WE CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING. 2. THE ASSESSEE - SOCIETY, REGISTERED UNDER THE SOCIETY ACT, 1860 ON 7.2.2008, FILED AN APPLICATION IN FORM 10A FOR G RANT OF REGISTRATION/S.12AA OF THE I.T.ACT, 1961. THE LEARNED CIT OBSERVED THAT THE ASSESSEE SOCIETY WAS EXISTING EARLIER PRIOR TO THE REGISTRATION ON THE BASIS OF FINANCIAL STATEMENTS ITA NO.183/CTK/2011 2 FURNISHED BY ASSESSEE FROM THE FY 2006 - 07 TO FY 2008 - 09. HE FURTHER OB SERVED THAT DURING THOSE YEARS THE ASSESSEE SOCIETY HAD UNDERTAKEN A NUMBER OF CHARITABLE ACTIVITIES I.E., ADOPTING UNDERPRIVILEGED CHILDREN, TRAINING PROGRAM TO TEACH SEEKING WOMEN, POLLUTION AWARENESS PROGRAM, PLANTATION, RELIEF PROGRAM AND RENOVATION OF MONARCHY AND PROVIDING DRINKING WATER FACILITIES AND MANY OTHER SIMILAR CHARITABL E ACTIVITIES. THE LEARNED CIT ALSO FOUND THAT I & E ACCOUNT AS ON 31.3.2009 REFLECTS MOST OF THE EXPENSES BEING DEBITED TOWARDS ADMINISTRATIVE AND ESTABLISHMENT EXPENSES AND ALMOST NOTHING HAS BEEN DEBITED FOR THE CHARITABLE ACTIVITIES. FROM THESE HE RAISED DOUBT ABOUT THE SERIOUSNESS AND GENUINENESS OF THE SOCIETYS ACTIVITIES AND THEREFORE, HE REJECTED THE APPLICATION OF THE ASSESSEE SEEKING GRANT OF REGISTRATION U/S.12AA. A GGRIEVED THE ASSESSEE - SOCIETY IS IN APPEAL BEFORE THE TRIBUNAL. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LEARNED CIT(A) OBSERVING THE EXPENDITURE CLAIMED IN THE INCOME & EXPENDITURE ACCOUNT HAD FAILED TO OBSERVE THAT THE EXPENSES WERE INC URRED FOR THE PURPOSE OF CHARITABLE WORK CARRIED OUT BY THE ASSESSEE BY CONFINING HIMSELF TO CONSIDER THAT PART FROM THE ADMINISTRATIVE AND ESTABLISHMENT EXPENSES, THE ASSESSEE HAD CLAIMED EXPENSES FOR FUNCTION AND FESTIVAL EXPENSES AND TO MAINTENANCE OF A SHRAMITS AND TEMPLES BOTH WERE DIRECTLY RELATED TO THE CHARITABLE WORK OF ADOPTION OF CHILDREN , UNPRIVILEGED CHILDREN , FEEDING OF POOR AND CREATING AWARENESS OF POLLUTION BY PLANTING TREES AND SAPLINGS AND BY PROVIDING DRINKING WATER FACILITIES WHICH EX PENDITURE VOUCHERS ARE AVAILABLE WITH THE ASSESSEE FOR VERIFICATION OF THE LEARNED CIT. HE SUBMITTED THAT THE GENUINENESS OF THE EXPENDITURE COULD ONLY BE VERIFIED ONCE THE CIT COULD GIVE OPPORTUNITY FOR HIS DOUBT TO THE ASSESSEE FOR INCURRING ANY EXPENDIT URE FOR THE MAIN OBJECT OF THE SOCIETY REGISTERED AS CHARITABLE ITA NO.183/CTK/2011 3 SOCIETY. HE PRAYED THAT AN OPPORTUNITY BE GRANTED TO THE ASSESSEE TO EXPLAIN THE FACTS WHICH HAVE BEEN CONSIDERED ARBITRARILY BY THE LEARNED CIT IN REJECTING THE GENUINENESS OF THE ACTIVITIES OF THE SOCIETY VIS - - VIS THE BOOKS OF ACCOUNT WHEN HE ONLY SOUGHT TO VERIFY THE FINANCIAL STATEMENTS WHICH ARE BASED ON THE BASIS OF SUCH VOUCHERS WHICH HE OUGHT TO HAVE VERIFIED. 4. THE LEARNED DR SUPPORTED THE ORDER OF THE LEARNED CIT AND SUBMITTED THAT INCOME AND EXPENDITURE ACCOUNT ENCLOSED WITH THE APPLICATION FOR SEEKING REGISTRATION U/S.12A ARE THE BASIC DOCUMENTS WHICH INDICATE THE CHARITABLE ACTIVITIES CARRIED OUT BY THE ASSESSEE THEREFORE SUPPORTED THE ORDER OF THE CIT FOR HIS PART SUBMISSIONS. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE INCLINED TO RESTORE THE ISSUE OF CONSIDERATION OF THE APPLICATION SEEKING REGISTRATION U/S.12A T O THE FILE OF THE LEARNED CIT AS THE LEARNED CIT HAS PASSED HIS DECISION TO REJECT THE GRANT OF REGISTRATION ON MISINTERPRETATION OF FACTS WITHOUT AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HE IS DIRECTED TO SATISFY HIMSELF FOR THE GE NUINENESS OF THE ACTIVITIES CARRIED OUT BY THE ASSESSEE FOR THE PURPOSE OF ITS CHARITABLE OBJECTS. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON DT. 12.08.2011 S D/ - S D/ - (K.S.S.PRASAD RAO) JUDICIAL MEMB ER (K.K.GUPTA) ACCOUNTANT MEMBER DATE: 12.08.2011 H.K.PADHEE, SENIOR PRIVATE SECRETARY. ITA NO.183/CTK/2011 4 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT: M/S.SHRI CHAITNYA DANDABHANGA LEELAKUNJASHRAM,CHANDANPUR,SHREE JAGANNAT H PURI, PURI 752 012. 2. THE RESPONDENT: COMMISSIONER OF INCOME - TAX, BHUBANESWAR. 3. THE CIT, 4. THE CIT(A), 5. THE DR, CUTTACK 6. GUARD FILE (IN DUPLICATE) TRUE COPY, BY ORDER, SENIOR PRIVATE SE CRETARY.