M/s The Rastriya Computer Saksharatha Samithi , Bantwal V. The Commissioner of INcome TAx (Exemptions) , Bangalore

ITA 2034/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4581 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 23-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. JASON P BOAZ , ACCOUNTANT MEMBER ITA NO S . 2033 AND 2034 / BANG/201 7 ASSESSMENT YEAR : 20 1 7 - 1 8 M/S. THE RASTRIYA COMPUTER SAKSHARATHA SAMITHI, 1 ST FLOOR, BHARATH COMMERCIAL COMPLEX, B. C. ROAD, BANTWAL 574 219. PAN : AABTT 8092 Q VS. THE COMMISSIONER OF INCOME TAX [EXEMPTIONS], BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI. NARENDRA SHARMA , ADVOCATE REVENUE BY : MS. NEERA MALHOTRA , CIT - DR DATE OF HEARING : 19 . 0 6 .201 8 DATE OF PRONOUNCEMENT : 22 . 0 6 .201 8 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THESE APPLES ARE PREFERRED BY THE ASSESSEE AGAINST THE RESPECTIVE ORDERS OF THE CIT(E) DENYING REGISTRATION UNDER SECTION 12AA AND RECOGNITION UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT. SINCE COMMON GROUNDS ARE RAISED, THESE APPEALS WERE HEARD TOGETHER AND ARE DISPOSED OFF THROUGH THIS CONSOLIDATED ORDER. GROUNDS RAISED IN THESE APPEALS ARE AS UNDER: ITA NOS. 2033 AND 2034/BANG/2017 PAGE 2 OF 4 GROUNDS OF APPEAL IN ITA NO.2033/BANG/2017 1. THE ORDER OF THE TEAMED CIITE] U/S.12AA[1][B][II] OF THE I.T. ACT, 1961 DATED 30/03/2016 REFUSING TO REGISTER THE TRUST U/S.12A OF THE I.T.ACT, 1961, IN SO FAR AS IT IS AGAINST THE APPELLANT, IS OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED CIT(E) IS NOT JUSTIFIED IN REFUSING TO REGISTER THE TRUST U/S 12AA[1][B][II] OF THE ACT, ON THE GROUND THAT THE APPELLANT HAS NOT COMPLIED THE REQUIREMENTS UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANTS CASE. 3. THE LEARNED CIT[E] OUGHT TO HAVE APPRECIATED THAT THE OBJECTS OF TRUST ARE CHARITABLE IN NATURE AND THAT THE APPELLANT HAD FILED ALL THE DETAILS CALLED FOR BY THE LEARNED CIT [EXEMPTIONS], BANGALORE AND THEREFORE, THE LEARNED CIT IS NOT JUSTIFIED IN REJECTING THE APPLICATION FOR REGISTRATION U/S. 12A OF THE ACT ON THE UNSUSTAINABLE ROUND THAT THE APPELLANT HAS NOT COMPLIED WITH THE DETAILS CALLED FOR. 4. FOR THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL, YOUR APPELLANT HUMBLY PRAYS THAT THE APPEAL MAY BE ALLOWED AND JUSTICE RENDERED AND THE APPELLANT MAY BE AWARDED COSTS IN PROSECUTING THE APPEAL AND ALSO ORDER FOR THE REFUND OF THE INSTITUTION FEES AS PART OF THE COSTS. GROUNDS OF APPEAL IN ITA NO.2034/BANG/2016 1. THE ORDER OF THE LEARNED CIT[E] U/S.80G[5][VI] OF THE I.T. ACT, 1961 DATED 30/03/2016 REFUSING TO GRANT RECOGNITION U/S 80G OF THE ACT, IN SO FAR AS IT IS AGAINST THE APPELLANT, IS OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED CIT[E] IS NOT JUSTIFIED IN REFUSING THE TO GRANT RECOGNITION U/S 80G OF THE INCOME-TAX ACT, 1961 ON THE GROUND THAT THE APPLICATION FOR REGISTRATION U/S. 12A OF THE ACT HAS BEEN REJECTED UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANT'S CASE. 3. FOR THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL, YOUR APPELLANT HUMBLY PRAYS THAT THE APPEAL MAY BE ALLOWED AND JUSTICE RENDERED AND THE APPELLANT MAY BE AWARDED COSTS IN PROSECUTING THE APPEAL AND ALSO ORDER FOR THE REFUND OF THE INSTITUTION FEES AS PART OF THE COSTS. ITA NOS. 2033 AND 2034/BANG/2017 PAGE 3 OF 4 2. WITH REGARD TO APPEAL NO.2033/BANG/2017 THROUGH WHICH DENIAL OF REGISTRATION UNDER SECTION 12AA IS CHALLENGED, THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THOUGH THE ASSESSEE HAS FILED THE REQUISITE INFORMATION BEFORE THE CIT, BUT HE DID NOT TAKE COGNIZANCE OF THE SAME AND REJECTED THE REQUEST FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS PLACED A COPY OF REPLY ALONG WITH THE REQUISITE DOCUMENTS FILED BEFORE THE CIT IN RESPONSE TO HIS LETTER DATED 15.03.2017 BUT THE CIT DID NOT LOOK INTO THE DOCUMENTS AND REJECTED THE REGISTRATION. THE LEARNED DR PLACED RELIANCE UPON THE ORDER OF THE CIT. 3. HAVING CAREFULLY EXAMINED THE DOCUMENTS PLACED BEFORE US, WE ARE OF THE VIEW THAT THE CIT HAS REJECTED THE REGISTRATION WITHOUT VERIFYING OR EXAMINING THE DOCUMENTS FILED BY THE ASSESSEE IN RESPONSE TO QUERY RAISED BY THE CIT. THEREFORE, THESE DOCUMENTS ARE REQUIRED TO BE PROPERLY EXAMINED BY THE CIT. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO READJUDICATE THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT IN THE LIGHT OF THE EVIDENCES FILED BEFORE HIM, AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. CONSEQUENT TO THE DENIAL OF REGISTRATION UNDER SECTION 12AA, THE CIT HAS ALSO REJECTED THE APPLICATION FOR RECOGNITION UNDER SECTION 80G(5)(VI) OF THE ACT. SINCE WE HAVE ALREADY SET ASIDE THE ORDER OF THE CIT DENYING REGISTRATION UNDER SECTION 12AA AND RESTORED THE MATTER TO THE CIT FOR READJUDICATION, THE ORDER OF THE CIT DENYING RECOGNITION UNDER SECTION 80G(5)(VI) DESERVES TO BE SET ASIDE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT DENYING REGISTRATION UNDER SECTION 80G(5)(VI) OF THE ACT AND RESTORE THE MATTER TO HIS FILE TO READJUDICATE THE ISSUE OF GRANT OF RECOGNITION UNDER SECTION 80G(5)(VI) AGAIN IN THE LIGHT OF FATE OF THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. ACCORDINGLY, BOTH THE ORDERS OF CIT ARE SET ASIDE AND MATTERS RESTORED TO HIS FILE FOR READJUDICATION IN TERMS INDICATED ABOVE. ITA NOS. 2033 AND 2034/BANG/2017 PAGE 4 OF 4 4. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 22 ND JUNE, 2018. SD/- SD/- BANGALORE. DATED: 22 ND JUNE, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE. (JASON P BOAZ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER