M/s.Dr.Vijayas Ayurveda Research and Development Trust, Mysore V. Commissioner of Income Tax, Bangalore

ITA 2040/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7641 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 05-07-2017
• Assessment Year: misc
• Appeal Filed On: 24-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K BIJU JT BENGALURU
• Keywords: Opportunity of being heard
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER ITA NOS.2039 & 2040/BANG/2016 ASSESSMENT YEARS : N.A. M/S. DR. VIJAYAS AYURVEDA RESEARCH & DEVELOPMENT TRUST, 1 ST MAIN, 18 TH CROSS, JAYANAGAR, MYSORE 570 014. PAN: AACTD 2073N VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI SURESH MUTHUKRISHNAN, CA RESPONDENT BY : SHRI M.K. BIJU, JT.CIT(DR),ITAT, BENGALURU DATE OF HEARING : 22.08.2017 DATE OF PRONOUNCEMENT : 31.08.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THESE APPEALS ARE PREFERRED BY THE ASSESSEE AGA INST THE RESPECTIVE ORDER OF THE CIT(EXEMPTIONS) DENYING REG ISTRATION U/S. 12A OF THE INCOME-TAX ACT, 1961 [THE ACT] AND RECOGNITIO N U/S. 80G OF THE ACT. ITA NOS.2039 & 2040/BANG/2016 PAGE 2 OF 4 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL F OR THE ASSESSEE HAS INVITED OUR ATTENTION THAT CIT(E) HAS DISMISSED THE APPLICATION FOR REGISTRATION U/S. 12A WITHOUT AFFORDING PROPER OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE AND AFTER REJECTING THE APPLICATION FO R REGISTRATION U/S. 12A, THE CIT(E) HAS ALSO REJECTED THE REQUEST FOR RECOGN ITION U/S. 80G OF THE ACT ON THE GROUND THAT REGISTRATION U/S. 12AA WAS DENIE D TO THE ASSESSEE. 3. THE LD. COUNSEL FOR THE ASSESSEE FURTHER INVITED OUR ATTENTION TO THE ORDER OF CIT(E) PASSED U/S. 12AA(1)(B)(II) OF THE A CT WITH THE SUBMISSION THAT ASSESSEE HAS FILED APPLICATION FOR REGISTRATIO N ON 28.03.2016, LETTER DATED 14.07.2016 WAS ISSUED TO THE APPLICANT CALLIN G FOR DETAILS/INFORMATION AND ON 03.08.2016 ASSESSEE FURNISHED CERTAIN DETAIL S. AGAIN ON 19.09.2016, LETTER WAS ISSUED TO FURNISH COPY OF AM ENDED TRUST DEED, ADDRESS PROOF AND FINANCIAL STATEMENT FOR THE YEAR ENDING 31.3.2016 FIXING THE HEARING ON 23.09.2016. ACCORDING TO THE ORDER, THE ASSESSEE COULD NOT APPEAR ON THE DATE FIXED AND CIT(E) DENIED REGISTRA TION WITHOUT AFFORDING OPPORTUNITY TO THE ASSESSEE. 4. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTEND ED THAT HE COULD NOT RECEIVE COMMUNICATION FROM THE CIT OFFICE, THEREFOR E HE COULD NOT APPEAR. THUS, IN THE INTEREST OF JUSTICE, THE MATTER SHOULD BE RESTORED BACK TO THE CIT(E) SO THAT ASSESSEE CAN PLACE THE REQUISITE INF ORMATION BEFORE HIM. ITA NOS.2039 & 2040/BANG/2016 PAGE 3 OF 4 5. THE LD. DR PLACED RELIANCE UPON THE ORDER OF CIT (E). 6. HAVING CAREFULLY EXAMINED THE ORDER OF CIT(E), W E FIND THAT THE CIT(E) HAS FIXED TWO DATES FOR HEARING. IF THE ASS ESSEE HAS APPEARED ON 03.08.2016 AND FURNISHED CERTAIN DETAILS, NEXT DATE OF HEARING SHOULD HAVE BEEN GRATED INSTEAD OF ISSUING A FRESH LETTER FOR H EARING ON 23.09.2016. IT IS NOT CLEAR FROM THE ORDER THAT NOTICE OF HEARING WAS DULY SERVED ON THE ASSESSEE OR NOT. MOREOVER, THE CIT(E) HAS FIXED TH E HEARING ONLY FOR TWO DATES AND WITHOUT AFFORDING FURTHER OPPORTUNITY, HE REJECTED THE APPLICATION FOR REGISTRATION. IN THESE CIRCUMSTANCES, WE ARE O F THE VIEW THAT SUFFICIENT OPPORTUNITY WAS NOT AFFORDED TO THE ASSESSEE TO PRE SENT ITS CASE EFFECTIVELY. THEREFORE, WE SET ASIDE THE ORDER OF CIT(E) DATED 2 9.09.2016 PASSED U/S. 12AA OF THE ACT AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO READJUDICATE THE ISSUE AFRESH AFTER AFFORDING PROPE R OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO PRESENT ALL RELEVANT INFORMATION/DETAILS/EVIDENCE BEFORE THE CIT(E) IN O RDER TO ADJUDICATE THE ISSUES EFFECTIVELY. 7. SINCE WE HAVE ALREADY SET ASIDE THE ORDER OF THE CIT(E) PASSED U/S. 12AA OF THE ACT, THE ORDER PASSED BY THE CIT(E) U/S . 80G(5)(VI) OF THE ACT IS ALSO SET ASIDE AND THE MATTER IS RESTORED TO HIS FI LE TO READJUDICATE THE ISSUE ITA NOS.2039 & 2040/BANG/2016 PAGE 4 OF 4 IN THE LIGHT OF THE ORDER PASSED ON REQUEST FOR REG ISTRATION U/S. 12A OF THE ACT. 8. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF AUGUST, 2017. SD/- SD/- ( JASON P. BOAZ ) ( SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 31 ST AUGUST, 2017. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.