Eastern India Culture Association, Vadodara V. CIT (Exemption), Ahmedabad

ITA 1984/AHD/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4798 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-04-2020
• Assessment Year: misc
• Appeal Filed On: 20-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRENDRA OJHA
• Assessee Lawyers: ABBAS GULAM HUSAINWAL
• Keywords: Principle of natural justice

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD ( CONVENED THROUGH VIRTUAL COURT ) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 1984/AHD/2018 EASTERN INDIA CULTURAL ASSOCIATION C-4, SWATI SOCIETY (LIG) P.O., SAMA ROAD, BARODA 390 008 / VS. CIT-EXEMPTION FIRST FLOOR, ROOM NO. 111- 112, ANNEXY, AAYKAR BHAVAN, ASHRAM ROAD, AHMEDABAD - 380009 ./ ./ PAN/GIR NO. : AAATE2555N ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI ABBAS GULAM HUSAINWAL, A.R. / RESPONDENT BY : SHRI VIRENDRA OJHA, CIT D.R. / DATE OF HEARING 06/10/2020 !'# / DATE OF PRONOUNCEMENT 19/10/2020 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX (EXEMPTIONS), AHMEDABAD (CIT(E) IN SHORT), DATED 30.07.2018 UNDER S. 80G(5) OF THE INCOME TAX ACT, 1961 (THE AC T). ITA NO. 1984/AHD/18 [EASTERN INDIA CULTURAL ASSOCIATION VS. CIT-E) - 2 - 2. AS PER ITS GROUNDS OF APPEAL, THE ASSESSEE IN ES SENCE HAS CHALLENGED THE ACTION OF THE CIT (EXEMPTIONS) IN RE JECTING THE APPLICATION FOR REGISTRATION OF THE ASSESSEE TRUST UNDER SECTION 80G(5) OF THE ACT AS WHOLLY ILLEGAL, UNLAWFUL AND A GAINST PRINCIPLES OF NATURAL JUSTICE. 3. WHEN THE MATTER WAS CALLED FOR HEARING BEFORE TH E TRIBUNAL, THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET REFE RRED TO THE IMPUGNED ORDER PASSED UNDER SECTION 80G(5) OF THE A CT WHEREBY THE APPLICATION FILED IN FORM NO.10G SEEKING APPROVAL U NDER SECTION 80G(5) OF THE ACT FOR AVAILING CONSEQUENTIAL BENEFI TS AS PER THE ACT WAS REJECTED AND POINTED OUT THAT THE CIT(A) HAS WR ONGLY RECORDED A FINDING THAT THE ASSESSEE HAS NOT FULLY COMPLIED WI TH THE NOTICE CALLING FOR RELEVANT DOCUMENTS/DETAILS. THE LEARNE D COUNSEL POINTED OUT THAT THE ASSESSEE HAS FILED RELEVANT INFORMATIO N UNDER THE COVERING LETTER DATED 12.07.2018. IT WAS POINTED O UT THAT THE MATERIAL PLACED BEFORE THE CIT (EXEMPTIONS) WAS NOT PROPERLY TAKEN INTO ACCOUNT WHILE ADJUDICATING THE REQUEST FOR REG ISTRATION ADVERSE TO THE ASSESSEE. IT WAS STRONGLY URGED THAT THE AC TION OF THE CIT (EXEMPTIONS) IS THUS IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE, ON THE OTHER HAND, RELIED UPON THE ORDER OF THE LEARNE D CIT (EXEMPTIONS) UNDER CHALLENGE BUT HOWEVER, SUBMITTED IN THE SAME VAIN AND FAIRLY SO THAT THE MATTER MAY GO BACK TO T HE FILE OF CIT (EXEMPTIONS) FOR CONSIDERATION OF DOCUMENTARY EVIDE NCES CLAIMED TO HAVE BEEN PLACED BEFORE THE CIT (EXEMPTIONS) FOR APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. WITHOUT GOING INTO THE MERITS OF THE CASE, WE NOTICE AT THE OUTSET THAT THE ITA NO. 1984/AHD/18 [EASTERN INDIA CULTURAL ASSOCIATION VS. CIT-E) - 3 - ASSESSEE HAS STRONGLY CHALLENGED THE ACTION OF THE CIT (EXEMPTIONS) ON THE GROUNDS OF TRANSGRESSION OF NATURAL JUSTICE. IT IS A CASE OF THE ASSESSEE THAT RELEVANT DOCUMENTARY EVIDENCES WERE D ULY FILED FOR THE SCRUTINY OF THE CIT(EXEMPTIONS) TO ENABLE HIM TO TA KE AN INFORMED DECISION ON THE APPLICATION FOR REGISTRATION IN FOR M NO.10G UNDER RULE 11AA OF THE INCOME TAX RULES TOGETHER WITH THE REGISTRATION GRANTED UNDER S.12A OF THE ACT. FROM THE PAPER BOO K FILED BEFORE THE TRIBUNAL, WE OBSERVE THAT THE ASSESSEE HAS PLAC ED CERTAIN DOCUMENTS AND EXPLANATIONS. THE CIT (EXEMPTIONS) H AS HOWEVER MADE REFERENCE TO CERTAIN DEFICIENCIES ON THE PART OF ASSESSEE TRUST IN ITS ORDER PASSED UNDER SECTION 80G(5) OF THE ACT . A PERUSAL OF THE IMPUGNED ORDER, HOWEVER, GIVES US AN IMPRESSION THAT THE CONTENTS OF THE AFORESAID COMMUNICATIONS HAVE NOT B EEN FULLY TAKEN INTO ACCOUNT WHILE REFUSING TO GRANT THE REGISTRATI ON SOUGHT. THE ASSESSEE ALSO APPEARS TO HAVE PROVIDED INADEQUATE A SSISTANCE TO THE REGISTERING AUTHORITY IN EXPLAINING THE GENUINENESS OF ITS ACTIVITIES ETC. 6. NEEDLESS TO SAY, THE PUBLIC AUTHORITY FUNCTIONIN G IN QUASI- JUDICIAL CAPACITY IS EXPECTED TO CONFIRM TO THE BAS IC PRINCIPLES OF NATURAL JUSTICE. IT APPEARS THAT THE CIT (EXEMPTIO NS) HAS OMITTED TO CONSIDER THE SUBMISSIONS AND DOCUMENTS WARRANTING O UR INTERFERENCE. THE NON-CONSIDERATION OF EVIDENCES A ND EXPLANATIONS HAS CAUSED PREJUDICE TO THE INTEREST OF THE ASSESSE E TRUST. THE ASSESSEE ALSO APPEARED TO HAVE FAULTED IN FULLY EXP LAINING THE MATERIAL PLACED. WE THUS CONSIDER IT EXPEDIENT TO RESTORE THE ISSUE BACK TO THE FILE OF CIT (EXEMPTIONS) FOR FRESH CONS IDERATION OF THE APPLICATION FOR REGISTRATION IN ACCORDANCE WITH LAW , AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. IT SHALL B E OPEN TO CIT(EXEMPTIONS) TO CALL FOR SUCH DOCUMENTS, EVIDENC ES AS MAY BE CONSIDERED NECESSARY TO DISPOSE OF THE PETITION FOR CONSIDERATION OF ITA NO. 1984/AHD/18 [EASTERN INDIA CULTURAL ASSOCIATION VS. CIT-E) - 4 - APPLICATION FOR REGISTRATION IN ACCORDANCE WITH LAW . NEEDLESS TO SAY THAT THE ASSESSEE SHALL CO-OPERATE EARNESTLY IN THE DE NOVO PROCEEDINGS BEFORE THE CIT(EXEMPTIONS) FOR THE PURP OSES OF DETERMINATION OF THE ISSUE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (RAJPAL YADAV) (PRADIP KUMA R KEDIA) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD: DATED 19/10/2020 TRUE COPY S. K. SINHA ! / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED ON 19/10/2020