House of Abraham Charitable Trust, Kodaikanal V. ITO, Dindigul

ITA 2045/CHNY/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8686 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 30-07-2014
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: T VASUDEVAN
• Keywords: Reopening of assessment; Charitable institution; Condonation of delay

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . ! ' , # '$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER . /ITA NOS. 2045 & 2046/MDS/2016 / ASSESSMENT YEARS : 2003-04 & 2006-07 HOUSE OF ABRAHAM CHARITABLE TRUST, KODAIKANAL CHRISTIAN COLLEGE, KODAIKANAL. ( /APPELLANT) V. THE INCOME-TAX OFFICER, WARD-I(1), DINDIGUL. RESPONDENT) / APPELLANT BY : SHRI T. VASUDEVAN, ADVOCATE / RESPONDENT BY : SHRI SHIVA SRINIVAS, JCIT ! / DATE OF HEARING : 22.08.2016 '# ! / DATE OF PRONOUNCEMENT : 24.08.2016 % / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED A GAINST DIFFERENT ORDERS OF THE COMMISSIONER OF INCOME-TAX( APPEALS), - - ITA 2045/14 2 BOTH DATED 31.1.2014 FOR THE ASSESSMENT YEARS 2003- 04 AND 2006-07. 2. THE FIRST ISSUE FOR OUR CONSIDERATION IN BOTH TH E APPEALS IS WITH REGARD TO REOPENING OF ASSESSMENT ON THE GROUN D THAT NO REASON FOR REOPENING OF ASSESSMENT HAS BEEN RECORDE D BY THE ASSESSING OFFICER BEFORE ISSUING NOTICE U/S.148 OF THE ACT. AS SUCH, REASSESSMENT ORDER PASSED U/S.147 OF THE ACT IS BAD IN LAW. THE ASSESSEE HAS ALSO RAISED GROUNDS WITH REG ARD TO ADDITIONS MADE BY THE AO IN BOTH THE APPEALS. SINC E, REOPENING OF ASSESSMENT IS THE ROOT OF THE MATTER, FIRST WE T AKE UP THE ISSUE OF REOPENING OF ASSESSMENT. 3. AT THE OUTSET, IT IS NOTICED THAT THERE IS A DEL AY OF 94 DAYS IN FILING THE APPEALS BEFORE THIS TRIBUNAL. THE AS SESSEE FILED A CONDONATION PETITION SEEKING CONDONATION OF DELAY I N FILING THESE APPEALS ON THE REASON THAT ORIGINALLY, THE ASSESSEE HAS GIVEN APPEAL PAPERS TO ONE MR. M. KARTHIKEYAN, CA. HOWEV ER, THE APPEAL PAPERS WERE RECEIVED BY ONE MR. K. AYYANAR, SON OF K. KARANTHAMALAI, WHO FAILED TO HAND OVER THE PAPERS T O THE CONCERNED COUNSEL FOR THE ASSESSEE DUE TO STRESS OF CA EXAMS - - ITA 2045/14 3 AND ONLY AFTER MR. SAM ABRAHAM, CHAIRMAN OF THE ASS ESSEE TRUST REMINDED HIM, THE PAPERS WERE TRACED AND NEC ESSARY STEPS WERE TAKEN TO FILE THE APPEAL PAPERS. IT WAS ALSO CONFIRMED BY THE ASSESSEE AND EXPLAINED THAT THE DELAY IS UNINTE NTIONAL AND THE DELAY MAY BE CONDONED. 4. THE LD. DR HAS NOT RAISED ANY SERIOUS OBJECTION IN CONDONING THE DELAY. 5. CONSIDERING THE REASONS ADVANCED BY THE ASSESSEE , WE ARE SATISFIED THAT THERE IS GOOD AND SUFFICIENT REA SON TO FILE THE APPEALS BELATEDLY, BEFORE THIS TRIBUNAL. ACCORDING LY, THE DELAY IS CONDONED AND THE APPEALS ARE ADMITTED FOR ADJUDICAT ION. 6. THE ISSUE RELATING TO REOPENING OF ASSESSMENT IS CONCERNED, IT IS TO BE SEEN THAT FOR THE FIRST TIME , IT IS RAISED BEFORE THIS TRIBUNAL. THE LD. AR PLEADED THAT THOU GH, THIS GROUND IS RAISED FOR THE FIRST TIME BEFORE THE TRIBUNAL, I N VIEW OF THE JUDGMENT OF THE SUPREME COURT IN THE CASE OF NTPC V S. CIT (229 ITR 383), THE TRIBUNAL HAS JURISDICTION TO EXA MINE THIS ISSUE, AS IT ARISES FROM THE FACTS BROUGHT ON RECORD AND D OES NOT REQUIRE - - ITA 2045/14 4 ANY INVESTIGATION. FURTHER, THE LD. AR PRAYED THAT THE ISSUE MAY BE DECIDED IN ACCORDANCE WITH LAW. 7. ON THE OTHER HAND, THE LD. DR SUBMITTED THAT THI S ISSUE WAS NOT RAISED BEFORE THE CIT(APPEALS). AS SUCH, T HE SAME MAY NOT BE REMITTED. 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. ADMITTEDLY, THESE ASSESSMENTS WERE REOP ENED U/S.147 OF THE ACT. RECORDING OF REASONS IS PRIME IMPORTANT BEFORE ISSUING NOTICE U/S.148 OF THE ACT, WHICH WAS NOT DONE BY THE AO. THE ASSESSEE FILED A COPY OF LETTER DATED 2.11.2015 FOR THE AY 2006-07 ISSUED BY THE ITO(EXEMPTIONS), MADUR AI STATING THAT THERE IS NO REASONS RECORDED BEFORE ISSUING NO TICE U/S.148 OF THE ACT, WHICH READS AS FOLLOWS : TO SENIOR AUTHORISED REPRESENTATIVE, A BENCH, INCOME TAX APPELLATE TRIBUNAL, II FLOOR, BBLOCK BESANT NAGAR, CHENNAI 600 090 SIR, - - ITA 2045/14 5 SUB: ASSESSEE APPEAL BEFORE ITAT IN THE CASE OF M/S. HOUSE OF ABRAHAM CHARTIABLE TRUST, KODAIKANAL, A.Y. 2006- 07 SUBMISSION OF DETAILS REG. REF: LETTER IN ITAT NO.2046/2014-A.Y.2006- 07 DT. 09.09.2015 PLEASE REFER TO THE ABOVE. IT IS SEEN FROM THE RECORD THERE IS NO REASON RECOR DD IN THE ORDER SHEET FOR ISSUING OF NOTICE U/S.148 BY TH E ASSESSING OFFICER. HOWEVER, DURING THE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER HAS MENTIONED THA T THE TRUST IS NOT GRANTED U/S.12A FOR THE ASSESSMENT YEA R 2006- 07 VIDE COMMISSIONER OF INCOME TAX-II C.NO.101/254/ CIT- II/2008-09 DT. 04.09.2009. THE ASSESSING OFFICER H AS TREATED THE INCOME IN AOP STATUS, AND PASSED THE ASSESSMENT ORDER ACCORDINGLY. I AM FURNISHING HEREWITH THE COPIES OF ORDER SHEET NOTING IN THE ABOVE CASE FOR THE ASSESSMENT YEAR 2006-07 CONTAINING SIX PAGES. YOURS FAITHFULLY, SD/- (P.RAVEENDRAN) INCOME-TAX OFFICER (EXEMPTIONS), MADURAI. 8.1 NO SUCH LETTER WAS FILED FOR THE A.Y. 2004-05. IN OUR OPINION, SINCE THIS ISSUE IS RAISED BEFORE US FOR T HE FIRST TIME, ALL MATERIALS RELATING TO REOPENING OF ASSESSMENT IS RE QUIRED TO BE EXAMINED BY THE AUTHORITIES CONCERNED. HENCE, IT I S APPROPRIATE TO REMIT THE ISSUE OF REOPENING TO THE FILE OF THE CIT(APPEALS) FOR - - ITA 2045/14 6 FRESH CONSIDERATION, AS HE HAS NO OCCASION TO EXAMI NE THE MATERIALS. ACCORDINGLY, THIS ISSUE IS REMITTED BAC K TO THE FILE OF THE CIT(APPEALS) FOR HIS ADJUDICATION. SINCE, WE H AVE NOT DEALT WITH THE LEGAL ISSUE, AT THIS STAGE, WE REFRAIN FRO M GOING TO THE OTHER GROUNDS RAISED BY THE ASSESSEE. 9. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE P ARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 24 TH OF AUGUST, 2016 AT CHENNAI. SD/- SD/- ( $% & ) ( ' ( ) $ ) *%+,-,./01,2345,.62,+778,293 : ;< /JUDICIAL MEMBER ! ;<=>>70.?,.?@A1BA2 ': /CHENNAI, C; /DATED, THE 24 TH AUGUST, 2016. MPO* ;D EFGF /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. H3 /CIT(A) 4. H /CIT 5. FIJ K /DR 6. JLM /GF.