M/s. Bantara Sangha Yekkaru, Dakshina Kannada V. The Commissioner Of Income Tax (Exemption), Bengaluru

ITA 1947/BANG/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4331 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 11-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Charitable institution; Opportunity of being heard
• Section: 80G; 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI. B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1947/BANG/2019 ASSESSMENT YEAR : 2019-20 M/S BANTARA SANGHA YEKKARU, A-23/1, NEAR GUDDE SANA, KINNILA HOUSE COMPOUND, YEKKAR, DAKSHINA KANNADA-574 509. PAN AAFAB 3780 Q. VS. THE COMMISSIONER OF INCOME TAX (EXEMPTION], BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SHRI PRANAV KRISHNA, ADVOCATE RESPONDENT BY : SHRI MUZAFFAR HUSSAIN, CIT (DR) DATE OF HEARING : 21-10-2020 DATE OF PRONOUNCEMENT : 27-10-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST O RDER DATED 26/07/2019 PASSED BY LD. CIT (E), BANGALORE D ENYING RECOGNITION UNDER SECTION 80 G OF THE ACT. 2. ASSESSEE IS A PUBLIC CHARITABLE TRUST CONSTITUTE D UNDER TRUST DEED DATED 16/10/2014. IT IS SUBMITTED THAT, APPLIC ATION FOR GRANT OF REGISTRATION UNDER SECTION 12 AA OF THE AC T AND RECOGNITION UNDER 80 G OF THE ACT WERE FILED ON SAM E DAY ON PAGE 2 OF 4 ITA NO.1947/BANG/2019 18/01/2019. IT IS SUBMITTED THAT VARIOUS DETAILS WE RE CALLED FOR BY LD.CIT(E) VIDE NOTICE DATED 09/07/2019 AND 19/07 /2019. ASSESSEE HAD FURNISHED ALL THE DETAILS VIDE ITS LET TER DATED 13/07/2019 AND 23/07/2019. IT HAS BEEN SUBMITTED BY LD.AR THAT, THERE WAS NO FURTHER COMMUNICATION FROM LD.CI T(E) HOWEVER, ASSESSEE WAS GRANTED REGISTRATION UNDER SE CTION 12AA OF THE ACT VIDE ORDER DATED 26/07/2019 AND APPLICATION UNDER SECTION 80G WAS REJECTED ON THE SAME DAY. 3. LD.AR PLACED RELIANCE ON DECISION OF COORDINATE BENCH OF THEI TRIBUNAL IN CASE OF M/S MANIPAL ALIMONY OF NPHROLOGY TRUST VS CIT IN ITA NO. 548 AND 549/B/2013 WHEREIN, THIS TRIBUNAL FOLLOWING DECISION OF HONBLE KARNATAKA HIGH COURT IN CASE OF DDIT (E) VS MEENAKSHI ENDOWMENT TRUST REPORTED IN 354 ITR 219 , HELD THAT AT THE TIME OF GRANT OF REGISTRATION UNDE R SECTION 12A OF THE ACT AS WELL AS APPROVAL UNDER SECTION 80G(5) (V I) OF THE ACT, ABSENCE OF ACTIVITIES OF THE TRUST CANNOT BE THE BA SIS TO REFUSE THE APPROVAL. 4. ON THE CONTRARY LD.SR.DR RELIED ON ORDERS PASSED BY LD.CIT(A). 5. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SID ES IN LIGHT OF RECORDS PLACED BEFORE US. WE ARE IN AGREEM ENT WITH THE CONTENTIONS PUT FORTH BY LD.AR. THE REASONS ASSIGNE D FOR NOT GRANTING APPROVAL UNDER SECTION 80G(5)(VI) IS DIREC TLY CONTRADICTORY TO THE ACTION OF LD.CIT(E) IN GRANTIN G REGISTRATION UNDER SECTION 12A OF THE ACT. WE THEREFORE SET ASID E THE ORDER OF LD.CIT(E) AND REMAND THE QUESTION OF GRANT OF APPRO VAL UNDER PAGE 3 OF 4 ITA NO.1947/BANG/2019 SECTION 80G(5) (VI) OF THE ACT TO LD.CIT(E) FOR FRE SH CONSIDERATION IN THE LIGHT OF THE DECISIONS REFERRED TO BY LD.AR. NEEDLESS TO SAY THAT, PROPER OPPORTUNITY OF BEING HEARD SHOULD BE G RANTED TO ASSESSEE. ASSESSEE IS ALSO DIRECTED TO FILE ALL REL EVANT DETAILS AS CALLED UPON. ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 27 TH OCT, 2020 SD/- SD/- (B. R. BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL ME MBER BANGALORE, DATED, THE 27 TH OCT, 2020. /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE PAGE 4 OF 4 ITA NO.1947/BANG/2019 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -10-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -10-2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -10-2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -10-2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -10-2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -10-2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -10-2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS