Anisha Education Society, Pune V. Commissioner of Income-tax - 1,

ITA 1855/PUN/2013

• Counselvise Citation: 185524514 RSA 2013
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 14-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MODI
• Assessee Lawyers: SUNIL PATHAK
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.1855/PN/2013 ANISHA EDUCATION SOCIETY, PLOT NO.53, LANE NO.2, KOREGAON PARK, PUNE -411001 PAN NO.AACAA6115F .. APPELLANT VS. CIT-I, PUNE .. RESPONDENT ASSESSEE BY : SHRI SUNIL PATHAK & SHRI SUHAS BORA REVENUE BY : SHRI A.K. MODI DATE OF HEARING : 22-05-2014 DATE OF PRONOUNCEMENT : 26-05-2014 ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 20-09-2013 OF THE CIT-I, PUNE REJECTING THE REQUEST FOR GRANT OF REGISTRATION U/S.12A OF THE INCOME TAX ACT. 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE SOCIETY, WHICH WAS CONSTITUTED VIDE A MEMORANDUM OF ASSOCIATION AND RE GISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 VIDE NOTIFICATION DATED 09-08-2012, APPLIED FOR GRANT OF REGISTRATION U/S.12A OF THE IN COME TAX ACT. THE LD.CIT VIDE HIS LETTER DATED 15-07-2013 CALLED FOR CERTAIN DETAILS SUCH AS CHARITABLE ACTIVITIES CARRIED OUT SINCE INCEPTION, COPIES OF STATEMENT OF ACCOUNTS AND BANK ACCOUNTS, PROOF OF HAVING FILED R ETURNS OF INCOME ETC. IN RESPONSE TO THE SAID LETTER, THE ASSESSEE SUBMIT TED ONLY COPIES OF ITS 2 BANK ACCOUNTS. THE OTHER DETAILS WERE NOT FURNISHE D. THEREFORE, THE CIT ISSUED ANOTHER LETTER DATED 06-09-201 ASKING THE AS SESSEE TO FURNISH THE REMAINING DETAILS ALONG WITH CERTAIN OTHER INFORMAT ION ON 19-09-2013. HOWEVER, THERE WAS NO COMPLIANCE TO THE SAME ALSO. THEREFORE, THE CIT PROCEEDED TO CONSIDER THE MERITS OF THE APPLICATION . HE OBSERVED THAT THE OBJECTS OF THE ASSESSEE SOCIETY ARE APPARENTLY CHAR ITABLE. HOWEVER, SINCE THE ASSESSEE DID NOT FURNISH ANY DETAILS OR EVIDENC E REGARDING THE ACTIVITIES CARRIED ON BY THE ASSESSEE SOCIETY, IT I S VERY DIFFICULT TO EXAMINE ONE OF THE TWO ESSENTIAL PRE-CONDITIONS LAI D DOWN U/S.12AA OF THE I.T. ACT, 1961, I.E. BEING SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITIES. HE ACCORDINGLY REJECTED THE REQUEST FO R GRANT OF REGISTRATION U/S.12A OF THE I.T. ACT. 3. AGGRIEVED WITH SUCH ORDER OF THE CIT THE ASSESSE E IS IN APPEAL BEFORE US WITH THE FOLLOWING GROUNDS : THE FOLLOWING GROUNDS ARE TAKEN WITHOUT PREJUDICE TO EACH OTHER ON FACTS AND IN LAW, 1] THE LEARNED CIT ERRED IN NOT GRANTING REGIS TRATION U/S 12AA TO THE APPELLANT TRUST. 2] THE LEARNED CIT WAS NOT JUSTIFIED IN HOLDING THAT THE ACTIVITIES OF THE TRUST WERE TO BE LOOKED INTO FOR GRANTING REGISTRATI ON U/S 12AA. 3] THE LEARNED CIT FAILED TO APPRECIATE THAT A. HAVING HELD THAT THE OBJECTS OF THE TRUST WERE CHA RITABLE, THE REGISTRATION U/S 12AA HAD TO BE GRANTED TO THE TRUST . B. THE APPELLANT RECEIVED THE NOTICE OF HEARING ON 24.09.2013 AND HENCE, THE APPELLANT COULD NOT ATTEND THE HEARING O N 19.09.2013 AS PER THE NOTICE AND THUS, SUFFICIENT OPPORTUNITY OF HEARING WAS NOT GRANTED. C. THE APPELLANT WAS GRANTED THE HEARING ON 27.09.20 13, THE QUESTION OF PASSING THE ORDER BEFORE THAT DATE DID NOT ARISE AND THUS, IT COULD NOT BE OBSERVED BY HIM IN THE ORDER TH AT THE APPELLANT HAS NOT GIVEN THE DETAILS AS PER THE NOTICE . 4] THE APPELLANT REQUESTS FOR GRANT OF REGISTR ATION U/S 12AA AS IT SATISFIES ALL THE CONDITIONS MENTIONED IN SECTION 12AA. 3 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE NOTICE FIXING THE CASE FOR HEARING ON 19-09-2013 WAS RECEIVED BY THE ASSESSEE ON 24- 09-2013, THE ASSESSEE MOVED AN APPLICATION BEFORE T HE LD.CIT FOR EXTENSION OF TIME AND WAS GRANTED TIME ON 27-09-201 3. HOWEVER, THE LD.CIT PASSED THE ORDER ON 20-09-2013 REJECTING THE REQUEST FOR GRANT OF REGISTRATION U/S.12A AND THEREFORE SUFFICIENT OPPOR TUNITY WAS NOT GRANTED TO THE ASSESSEE SOCIETY TO EXPLAIN ITS CASE. HE SU BMITTED THAT SINCE THE LD.CIT IS NOT DOUBTING THE OBJECTS OF THE ACTIVITIE S OF THE TRUST AS CHARITABLE IN NATURE, THEREFORE, HE SHOULD NOT HAVE REJECTED THE GRANT OF REGISTRATION U/S.12A ON THE GROUND THAT THE ASSESSE E HAS NOT MET ABOUT THE GENUINENESS OF THE ACTIVITIES. 4.1 REFERRING TO THE DECISION OF THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF USHA PANNA PITALIYA CHARITABLE TRUST VS. CI T VIDE ITA NO.716/PN/2013 ORDER DATED 21-04-2014 HE SUBMITTED THAT THE TRIBUNAL IN THE SAID DECISION HAS HELD THAT THE CIT WAS NOT JUSTIFIED IN DENYING REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE ME RELY ON ACCOUNT OF NON-STARTING OF THE ACTIVITIES AS MANIFESTED BY THE OBJECTS OF THE MEMORANDUM OF ASSOCIATION OF ASSESSEE. REFERRING T O THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF DIT VS. FOU NDATION OF OPTHALMIC AND OPTOMETRY RESEARCH EDUCATION CENTRE H E SUBMITTED THAT THE HONBLE HIGH COURT, IN THE SAID DECISION, HAS H ELD THAT NON- COMMENCEMENT OF CHARITABLE ACTIVITY IS NOT A GROUND FOR DENYING REGISTRATION. HE ACCORDINGLY SUBMITTED THAT SINCE THE CIT HAS SATISFIED HIMSELF ABOUT THE NATURE OF THE ACTIVITIES OF THE A SSESSEE SOCIETY AS CHARITABLE, THEREFORE, UNDER THE FACTS AND CIRCUMST ANCES OF THE CASE, HE SHOULD HAVE ALLOWED REGISTRATION U/S.12A OF THE I.T . ACT. 4 5. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND SUBMITTED THAT, FOR GRANTING REGISTRATION U/S.12A, THE CIT HA S TO BE SATISFIED ABOUT THE OBJECTS OF THE TRUST AS WELL AS ABOUT THE GENUI NENESS OF ITS ACTIVITIES. DESPITE SUFFICIENT OPPORTUNITIES GRANTED, THE ASSES SEE TRUST HAS NOT FILED THE REQUISITE DETAILS BEFORE THE CIT FOR WHICH THE LD.CIT WAS JUSTIFIED IN DENYING REGISTRATION U/S.12A OF THE I.T. ACT. HE, HOWEVER, SUBMITTED THAT SINCE THE ORDER HAS BEEN PASSED BEFORE THE DUE DATE OF HEARING, THEREFORE, HE HAS NO OBJECTION IF THE MATTER IS RES TORED TO THE FILE OF THE LD.CIT WITH A DIRECTION TO GIVE DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE ISSUE AFRESH. 6. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES, PERUSED THE ORDER OF THE LD.CIT AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE FIND THE ASSESSEE HAD ADDRESSED A LET TER TO THE CIT ON 25- 09-2013 STATING THAT THE LETTER DT. 06-09-2013 FIXI NG THE HEARING OF THE CASE ON 19-09-2013 WAS RECEIVED BY THE ASSESSEE ON 24-09-2013 AND ACCORDINGLY IT WAS REQUESTED TO GIVE ANOTHER DATE. AS PER THE SAID APPLICATION, THE DATE WAS EXTENDED TO 27-09-2013. HOWEVER, THE LD.CIT PASSED THE ORDER REFUSING GRANT OF REGISTRATION U/S .12A ON 20-09-2013. THEREFORE, WE ARE OF THE OPINION THAT THE ASSESSEE WAS NOT GIVEN REASONABLE OPPORTUNITY TO REPRESENT ITS CASE. WE, THEREFORE, DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE LD.C IT WITH A DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBMIT THE REQUISITE DETAILS. THE LD.CIT SHALL DECIDE THE ISSUE AFRESH AND IN ACC ORDANCE WITH LAW AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ALSO DIRECT THAT THE LD.CIT SHALL PASS THE ORDER WITHIN A PERIOD OF THREE MONTHS FROM THE DATE OF RECEIPT OF CERTIFIED COPY O F THIS ORDER FILED BY 5 THE ASSESSEE BEFORE HIM. WE HOLD AND DIRECT ACCORD INGLY. GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 26-05-2014. SD/- SD/- (R.S. PADVEKAR) (R.K. PAND A) JUDICIAL MEMBER ACCOUN TANT MEMBER PUNE DATED: 26 TH MAY, 2014 SATISH COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. DEPARTMENT 3. THE D.R, B PUNE BENCH 4. GUARD FILE BY ORDER // TRUE COPY // SENIOR PRIVATE SECRETARY ITAT, PUNE BENCHES, PUNE