Saddiksha Public Charitable trust, Bengaluru V. Commissioner Of Income Tax (Exemptions) , Bengaluru

ITA 2063/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8747 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 19-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C H SUNDAR RAO
• Assessee Lawyers: H V GOUTHAMA
• Keywords: Charitable institution; Opportunity of being heard; Set aside
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER IT A NO. 2 063 /BANG/201 8 ASSESSMENT YEAR : 20 1 8 - 1 9 M/S. SADDIKSHA PUBLIC CHARITABLE TRUST, ROOM NO.25, NO.36, MAYURA COMPLEX, 1 ST MAIN ROAD, 1 ST STAGE, YESHWANTHPUR, BANGALORE 560 022. PAN : AALTS 3673 C VS. THE COMMISSIONER OF INCOME TAX (EXEMPTION), 6 TH FLOOR, UNITY BUILDING ANNEX, P. KALINGA RAO ROAD, BENGALURU 560 027. APPELLANT RESPONDENT ASSESSEE BY : SHRI. H. V. GOUTHAMA , CA REVENUE BY : SHRI. C. H. SUNDAR RAO, CIT DATE OF HEARING : 25 . 0 2 .201 9 DATE OF PRONOUNCEMENT : 03 . 04 .201 9 O R D E R PER JASON P. BOAZ, ACCOUNTANT MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(EXEMPTION), BANGALORE, DATED 14.05.2018 REJECTING THE ASSESSEES APPLICATION FOR GRANT OF RECOGNITION UNDER SECTION 80G OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE FACTS RELEVANT FOR DISPOSAL OF THIS APPEAL ARE AS UNDER:- 2.1 THE ASSESSEE TRUST, ESTABLISHED BY TRUST DEED DATED 20.03.2010, FILED APPLICATIONS FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT ITA NO.2063/BANG/2018 PAGE 2 OF 7 AND FOR GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT SIMULTANEOUSLY ON 03.11.2017. LETTERS WERE ISSUED BY THE CIT(E) TO THE ASSESSEE CALLING FOR DETAILS / CLARIFICATIONS THEREON. IN THIS REGARD, THE ASSESSEE SUBMITTED REPLIES. THE CIT(E), AFTER CONSIDERING THE DETAILS FILED, REJECTED THE ASSESSEES APPLICATION SEEKING GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT VIDE THE IMPUGNED ORDER DATED 14.05.2018 ON THE GROUNDS THAT SINCE THE DETAILS OF ACTIVITIES CARRIED OUT AS SUBMITTED BY THE TRUST WERE WITHOUT MENTIONING ANY DATE AND PLACE, THERE WAS NO OPTION BUT TO REJECT THE ASSESSEES APPLICATION FOR GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT. 2.2 HOWEVER, AS FAR AS THE ASSESSEES APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT, THE CIT(E) BY ORDER OF EVEN DATE, AS THE IMPUGNED ORDER, I.E., DATED 14.05.2018 HAS GRANTED THE ASSESSEE REGISTRATION; COPY OF WHICH HAS BEEN PLACED ON FILE IN THE COURSE OF HEARINGS BEFORE US. 3.0 AGGRIEVED BY THE ORDER OF CIT(E), BENGALURU, DATED 14.05.2018 REJECTING THE ASSESSEES APPLICATION FOR RECOGNITION UNDER SECTION 80G, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL; WHEREIN IT HAS RAISED THE FOLLOWING GROUNDS:- 1. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) ERRED IN REJECTING THE APPLICATION FILED FOR RECOGNITION U/S. 80G(5)(IV). 2. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) ERRED IN STATING THAT DETAILS SUBMITTED ON 03.11.2017 IN RESPECT OF EVIDENCE OF CHARITABLE WORK CARRIED OUT ARE WITHOUT ANY DATE OR DETAILS. 3. THE APPELLANT FURTHER SUBMITS ALL THE DETAILS REQUIRED BY LEARNED COMMISSIONER OF INCOME TAX TOGETHER WITH PHOTOGRAPHS OF ACTIVITIES ITA NO.2063/BANG/2018 PAGE 3 OF 7 CONDUCTED HAVE BEEN SUBMITTED ALONG WITH LETTER DTD. 30 TH APRIL 2018 WHICH WAS HANDED OVER PERSONALLY TO THE LEARNED ASSESSING OFFICER ON 03.05.2018. SOME OF THE PHOTOGRAPHS SUBMITTED AT THE TIME OF HEARING GIVES A DETAILED NOTE ON ACTIVE CONDUCTED BY THE APPELLANT TRUST AND THE ACTION OF LEARNED COMMISSIONER OF INCOME TAX STATING THAT CHARITABLE ACTIVITIES HAVE NOT BEEN CONDUCTED IS WRONG. 4. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) OUGHT TO HAVE CONSIDERED ALL THE FACTS AND BASED ON THE LETTER ENCLOSING THE PHOTOGRAPHS DETAILS OF VARIOUS ACTIVITIES CONDUCTED SHOW THAT THE TRUST HAS BEEN CONDUCTING CHARITABLE ACTIVITIES. 5. FOR THE ABOVE ANY OTHER GROUNDS THAT MAY BE ADVANCED AT THE TIME OF HEARING THE APPELLANT PRAY THE HON'BLE MEMBERS TO DIRECT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) TO ALLOW RECOGNITION OF SEC. 80G OF INCOME TAX ACT, 1961. 4.1 BEFORE US, THE LEARNED AR FOR THE ASSESSEE SUBMITTED THAT ITS APPLICATIONS FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT AND FOR RECOGNITION UNDER SECTION 80G OF THE ACT WERE BOTH FILED BEFORE THE CIT(E) ON 03.11.2017. DETAILS AND CLARIFICATIONS THEREON WERE CALLED FOR BY THE CIT(E) AND THE ASSESSEE ALSO FILED ITS REPLY IN THIS REGARD. IT IS SUBMITTED THAT WHILE THE CIT(E) DISMISSED THE ASSESSEES APPLICATION FOR GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT VIDE THE IMPUGNED ORDER DATED 14.05.2018, THE CIT(E) HOWEVER WENT ON TO GRANT THE ASSESSEE RECOGNITION UNDER SECTION 12AA OF THE ACT VIDE ORDER DATED 14.05.2018 I.E., ON THE SAME DATE THAT HE PASSED THE IMPUGNED ORDER. IT WAS SUBMITTED THAT THE CIT HAS REJECTED THE ASSESSSEES APPLICATION FOR REGISTRATION PRIMARILY ON THE GROUND THAT THE ACTIVITY DETAILS SUBMITTED ITA NO.2063/BANG/2018 PAGE 4 OF 7 BY THE ASSESSEE TRUST DOES NOT MENTION ANY DATE AND PLACE AND THEREFORE HE HAD NO OPTION BUT TO REJECT THE ASSESSEES APPLICATION FOR RECOGNITION UNDER SECTION 80G OF THE ACT. ACCORDING TO THE CONTENTION OF THE LEARNED AR, SINCE THE CIT(E) HAS GRANTED THE ASSESSEE TRUST REGISTRATION UNDER SECTION 12AA OF THE ACT VIDE ORDER DATED 14.05.2018, IT SHOWS THAT THE CIT(E) HAS ALREADY VERIFIED ITS OBJECTS AND ITS ESTABLISHMENT FOR CHARITABLE PURPOSES WHILE GRANTING REGISTRATION AND THEREFORE THE CIT(E) BE DIRECTED TO GRANT THE ASSESSEE RECOGNITION UNDER SECTION 80G OF THE ACT. IN SUPPORT OF THIS PROPOSITION, THE LEARNED AR, INTER ALIA, PLACED RELIANCE ON THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF INDIC SCIENCE RESEARCH TRUST VS. CIT (EXEMPTION), BENGALURU, IN ITA NO.1077/BANG/2018 DATED 20.07.2018. 4.2 PER CONTRA, THE LEARNED DR FOR REVENUE, SUPPORTED THE ORDER OF THE CIT(E) REJECTING THE ASSESSEES APPLICATION FOR GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT. 4.3.1 WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD; INCLUDING THE JUDICIAL PRONOUNCEMENTS CITED / RELIED UPON. THE UNDISPUTED FACTS, AS EMERGE FROM A PERUSAL OF THE RECORD ITA NO.2063/BANG/2018 PAGE 5 OF 7 BEFORE US, IS THAT THE ASSESSEE TRUST ESTABLISHED VIDE TRUST DEED DATED 20.03.2010, SIMULTANEOUSLY FILED APPLICATIONS FOR GRANT OF REGISTRATION UNDER SECTION 12AA AND GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT ON 03.11.2017. CLARIFICATIONS / DETAILS WERE CALLED FOR THEREON BY THE CIT(E) AND THE ASSESSEES REPLY FOR BOTH GRANT OF REGISTRATION UNDER SECTION 12AA AND RECOGNITION UNDER SECTION 80G OF THE ACT WAS FILED. FROM THE IMPUGNED ORDER, WE FIND THAT THE MAIN OBJECTION BY THE CIT(E) TO GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT WAS THAT THE ASSESSEE TRUST IN THE DETAILS OF ACTIVITIES SUBMITTED BEFORE THE CIT DID NOT MENTION THE DATE AND PLACE THEREOF AND THEREFORE, IT WAS NOT A FIT CASE FOR GRANT OF RECOGNITION UNDER SECTION 80G OF THE ACT. IN OUR VIEW, WHEN THE DETAILS OF ACTIVITIES WERE ADMITTEDLY FILED BY THE ASSESSEE, THE CIT(E) OUGHT TO HAVE SOUGHT CLARIFICATIONS THEREON. THIS CANNOT BE THE BASIS FOR REJECTION OF THE ASSESSEES APPLICATION. STRANGELY, IN THE CASE ON HAND, ON THE VERY SAME DAY I.E., 14.05.2018 WHEN HE REJECTED THE ASSESSEES APPLICATION FOR RECOGNITION UNDER SECTION 80G OF THE ACT, THE CIT(E) HAS GRANTED THE ASSESSEE-TRUST REGISTRATION UNDER SECTION 12AA OF THE ACT VIDE ORDER DATED 14.05.2018; OSTENSIBLY, AFTER EXAMINATION OF THE ASSESSEES OBJECTS, ETC., WHICH THE CIT HAS CATEGORIZED AS ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. ITA NO.2063/BANG/2018 PAGE 6 OF 7 4.3.2 IN THIS FACTUAL MATRIX OF THE CASE, AS DISCUSSED ABOVE AND FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH IN THE CASE OF INDIC SCIENCE RESEARCH TRUST (SUPRA), WE ACCORDINGLY SET ASIDE THE IMPUGNED ORDER OF THE CIT(E) DATED 14.05.2018 PASSED UNDER SECTION 80G(5)(V) OF THE ACT AND RESTORE THE MATTER TO THE FILE OF THE CIT(E) TO EXAMINE THE MATTER AFRESH IN THE LIGHT OF HIS ORDER DATED 14.05.2018 GRANTING THE ASSESSEE REGISTRATION UNDER SECTION 12AA OF THE ACT AND OUR OBSERVATIONS HEREINABOVE. NEEDLESS TO ADD, THE CIT(E) IS DIRECTED TO AFFORD THE ASSESSEE REASONABLE OPPORTUNITY OF BEING HEARD IN THE MATTER AND TO FILE DETAILS / SUBMISSIONS REQUIRED THAT SHALL BE CONSIDERED BEFORE DECIDING THE ISSUE. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 3 RD APRIL, 2019. SD/- SD/- ( N. V. VASUDEVAN ) (JASON P. BOAZ) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE. DATED: 3 RD APRIL, 2019. /NS/* ITA NO.2063/BANG/2018 PAGE 7 OF 7 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.