Defy Educational Organisation, Bangalore V. The Commissioner Of Income Tax (Exemptions), Bengaluru

ITA 1840/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6194 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 26-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SURESH MUTHUKRISHNACA
• Keywords: Opportunity of being heard; TDS; Set aside
• Section: 80G; 12AA; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ES : A , BANGALORE BEFORE SHRI N.V.VASUDEVAN, VICE PRESIDENT AND S HRI A.K.GARODIA, A CCOUNTANT MEMBER ITA NO. 1 840 (BANG)/ 20 1 9 DEFY EDUCATIONAL ORGANIZATION, 3 RD FLOOR , NO.29/1, MAGRATH ROAD, BANGALORE - 560 0 25 PAN NO. A AFCD9128C APPELLANT VS THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE RESPONDENT APPELLANT BY : S HRI SURESH MUTHUKRISHNA,CA RE VENUE BY : MS.NEERA MALHOTRA, CIT - DR DATE OF HEARING : 1 1 - 0 2 - 2020 DATE OF PRONOUNCEMENT : 12 - 02 - 2020 O R D E R PER SHRI N.V.VASUDEVAN, VICE PRESIDENT : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 28 - 06 - 2019 OF CIT( E ), BANGALORE, RE JECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF RECOGNITION U/S 80G OF THE I NCOME T AX ACT, 1961 (ACT) . ITA NO. 1 840 (BANG/2019 2 2. THE A SSESSEE HAD A PP LIED FOR GRANT OF RECOGNITION U/S 80G OF THE ACT ON 26 - 12 - 2018 . IT IS NOT IN DISPUTE THAT THE ASSESSEE TRUST WAS GRANTED REGISTRATION U/S 12AA OF THE ACT BY THE CIT(EXEMPTIONS), BANGALORE BY AN ORD E R DATED 21 - 09 - 2017. IT IS THUS CLEAR THAT THE OBJECTS OF THE ASSESSEE ARE CHARITABLE IN NATURE WITHIN THE MEANING OF SEC. 2 ( 15 ) OF THE A CT. AS FAR AS THE APPLICATION FOR GRANT OF RECOGNITION U/S 80 - G OF THE ACT IS CONCERNED, THE CIT(E) HAD CALLED FOR CERTAIN DETAILS AND THE ASSESSEE WAS ASKED TO COMPLY AND FURNISH THOSE D ETAILS BY 17 - 06 - 2019 . THE ASSESSEE DID NOT COMPLY WITH THE DIRECTIONS OF THE CIT(E) AND THE REQUIRED DETAILS WERE NOT GIVEN. IN THESE CIRCUMSTANCES, THE CIT(E) CAME TO A CONC L USION THAT THE CHARITABLE NATURE OF THE OBJECTS OF THE TRUST COULD NOT BE VERI FIED AND THEREFORE, G R ANT OF RECOGNITION U/S 80G OF THE ACT WAS REJECTED. 3. IN THIS APPEAL, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL THE DETAILS WHICH THE CIT(E) WANTED WERE ALREADY AVAILABLE ON RECORD. WE ARE O F THE VIEW THAT THE ORDER OF THE CIT(E) SHOULD BE SET ASIDE AND THE MATTER REMANDED TO CIT(E) FOR FRESH CONSIDERATION TO AFFORD ASSESSEE ONE MORE OPPORTUNITY TO ESTABLISH HIS CASE FOR GRANT OF RECOGNITION U/S.80G OF THE ACT, ESPECIALLY WHEN THE ASSESSEE HAS ALREADY BEEN GRANT ED REGISTRATION U/S.12A OF THE ACT. IT MAY BE TRUE THAT ALL THE MATERIAL WHICH THE CIT(E) WANTED ARE ALREADY AVAILABLE ON RECORD BUT THAT CANNOT BE A SUBSTITUTE FOR ASSESSEE NOT TO ATTEND AND FURNISH EXPLANATION TO SATISFY THE CIT(E) THAT THE ASSESSEE DES ERVES TO BE ALLOWED RECOGNITION U/S.80G OF THE ACT. THE ASSESSEE WILL FURNISH THE DETAILS THAT THE CIT(E) HAD CALLED FOR IN HIS LETTER AND ALSO COMPLY WITH SUCH OTHER DIRECTIONS AND INFORMATION AND CLARIFICATION THAT THE CIT(E) MIGHT HAVE OR CALL FOR. TH E CIT(E) IS DIRECTED TO CONSIDER THE APPLICATION FOR REC OGNITION U/S 80G OF THE ACT AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE A SSESSEE. 3. THE APPEAL OF THE AS SESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH FEB.2020. SD/ - SD/ - ( A.K.GARODIA ) ( N.V.VASUDEVAN ) ACCOUNTANT MEMBER VIC E PRESIDENT DATED: 12 - 02 - 2020. *AM ITA NO. 1 840 (BANG/2019 3 COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.GUARD FILE BY ORDER ASST. REGISTRAR