Seervi Samaj Bilwas Trust , Bangalore V. Income Tax Officer Ward-3 , Bangalore

ITA 2009/BANG/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5490 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 16-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: B R SUDHEENDRA
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, B E NGAL U R U BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI LALIT KUMAR, JUDICIAL MEMBER ITA NO. 2009 / BANG/ 201 7 (ASSESSMENT YEAR : 201 7 - 18 ) SEERVI SAMAJ BILAWAS TRUST, NO.2/2, SHANTHA KUNJ, BEGUR MAIN ROAD, BOMMANAHALLI, BENGALURU - 560068. PAN: AAQTS 5743 J VS. APPELLANT INCOME - TAX OFFICER (EXEMPTIONS) WARD - 3, BENGALURU/CIT(EXEMPTIONS), BENGALURU. RESPONDENT APPELLANT BY : SHRI B.R.SUDHEENDRA, CA. RESPONDENT BY : MS. NE ERA MALHOTRA, CIT(DR) DATE OF HEARING : 01/03/2018 DATE OF PRONOUNCEMENT : 02 /0 3 /2018 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE - TRUST DIRECTED AGAINST THE ORDER OF THE LEARNED COM MISSIONER OF INCOME - TAX (E XEMPTIONS ) , BENGALURU, [CIT(EXEMPTIONS)] DATED 27/07/2017 REJECTING REGISTRATION U/S 12AA OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT]. 2 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE - TRUST FILED AN APPLICATION IN THE PRESC RIBED FORM FOR REGISTRATION U/S 12AA OF THE ACT ON 16/01/2017. THE LD.CIT(EXEMPTIONS) HAD ISSUED A LETTER DATED 03/07/2017 CALLING FOR CERTAIN DETAILS. IT IS STATED THAT THE ASSESSEE - TRUST HAD NOT COMPLIED WITH THE SAID LETTER. THEREFORE, THE LD.CIT(EXEM PTIONS) FELT THAT IT WAS NOT POSSIBLE TO SATISFY HIMSELF ABOUT THE OBJECTS AND GENUINENESS OF THE TRUST. THEREFORE, DECLINED REGISTRATION U/S 12AA VIDE IMPUGNED ORDER. ITA NO . 2009 /BANG/201 7 PAGE 2 OF 4 3. BEING AGGRIEVED, THE ASSESSEE - TRUST IS BEFORE US IN THE PRESENT APPEAL RAIS ING THE F OLLOWING GROUNDS OF APPEAL: 3. LEARNED AR OF THE ASSESSEE CONTENDED THAT THE ASSESSEE - TRUST HAS NOT RECEIVED THE LETTER DATED 03/07/2017 ISSUED BY THE LD.CIT(EXEMPTIONS) AND THEREFORE, COULD NOT BE COMPLIED WITH. IN SUPPORT OF THIS CONTENTION, AFFIDAVI T DULY SWORN BY THE PRESIDENT OF THE ASSESSEE - TRUST WAS FILED BEFORE US, WHICH READS AS UNDER: I, N.KHIVARAM, S/O NEMARAMJI AGED ABOUT 58 YEARS, PRESIDENT OF SEERVI SAMAJ BILAWAS TRUST, NO.2/2, SHANTHA KUNJ, BEGUR MAIN ROAD, BOMMANAHALLI, BANGALORE, DO S OLEMNLY AFFIRM AND STATE ON OATH AS UNDER: ITA NO . 2009 /BANG/201 7 PAGE 3 OF 4 ON THE OTHER HAND, LD.CIT(DR) OPPOSED THE SUBMISSIONS. 4. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ONLY ISSUE IN THE PRESENT APPEAL IS WHETHER THE LD.CIT(EXEMPTIONS) WAS JUSTIFIED IN DENYING REGISTRATION U/S 12AA OF THE ACT. THE SOLITARY GROUND ON WHICH THE LD.CIT(EXEMPTIONS) DENIED REGISTRATION IS THAT THE ASSESSEE - TRUST HAD NOT COMPLIED WITH THE LETTER ISSUED BY HIM CALLING FOR CERTAIN DETAILS. IN ABSENCE OF SUCH DETAILS, THE LD.CI T(EXEMPTIONS) DREW ADVERSE INFERENCE AND DENIED REGISTRATION. BEFORE US, THE ASSESSEE - TRUST MADE OUT A CASE BY FILING AN AFFIDAVIT AS TO HOW IT WAS PREVENTED FROM COMPLYING WITH THE NOTICE ISSUED BY THE LD.CIT(EXEMPTIONS). THE CONTENTS OF THE AFFIDAVIT H AVE NOT BEEN REBUTTED BY THE LD.CIT(DR). IN THE CIRCUMSTANCES, WE DEEM IT FIT TO RESTORE THE MATTER TO THE FILE OF THE LD.CIT(EXEMPTIONS). 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUN CED IN THE OPEN COURT ON 2 ND MARCH 2018. SD/ - SD/ - ( LALI T KUMAR ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : B EN GA L URU D A T E : 02/ 03 /2018 SRINIVASULU, SPS ITA NO . 2009 /BANG/201 7 PAGE 4 OF 4 COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE