C.R.Anand Educational Trust, Madurai V. CIT, Madurai

ITA 2155/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64639 (ITAT-CHENNAI)
• Duration Of Justice: 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 14-12-2012
• Assessment Year: misc
• Appeal Filed On: 27-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURU BASHYAM IRS
• Assessee Lawyers: N DEVANATHAN
• Keywords: Charitable institution; Cancellation of registration
• Section: 12A; 12AA; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.2155(MDS)/2012 & S.P. NO.118(MDS)/2012 IN ITA NO.2155(MDS)/2012 M/S.C.R.ANAND EDUCATIONAL TRUST, 34-GANESHAPURAM, K.PUDUR, MADURAI-625 007. PAN AABTC1675J. VS. THE COMMISSIONER OF INCOME-TAX-I, MADURAI. (APPELLANT/PETITIONER) (RESPONDENT) APPELLANT BY : SHRI N.DEVANATHAN, AD VOCATE RESPONDENT BY : SHRI GURU BASHYAM, IRS. J CIT DATE OF HEARING : 14 TH DECEMBER, 2012 DATE OF PRONOUNCEMENT : 14 TH DECEMBER, 2012 O R D E R PER S.S.GODARA, JUDICIAL MEMBER THIS APPEAL IS FILED BY THE ASSESSEE TRUST. IT IS FILED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX, CANCELLING THE REGISTRATION OF THE ASSESSEE UNDER SECTION 12AA(1)( B) OF THE INCOME-TAX ACT, 1961. - - ITA 2155 & SP 118 OF 2012 2 2. THE MAIN GRIEVANCE OF THE ASSESSEE IS THAT THE ASSESSEE TRUST HAS BEEN CARRYING ON THE ACTIVITIES PURSUANT TO ITS OBJECTS AND NO CIRCUMSTANCES PREVAILED FOR WHICH RE ASON THE COMMISSIONER OF INCOME-TAX COULD HAVE CANCELLED THE REGISTRATION EARLIER GRANTED TO THE ASSESSEE TRUST. IT IS ALSO THE CASE OF THE ASSESSEE THAT THE COMMISSIONER OF INCOM E-TAX HAS PASSED AN EX-PARTE ORDER WITHOUT GIVING AN EFFECTIV E OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 3. IN THE FACTS OF THE CASE, WE FIND THAT THIS IS A FIT CASE TO BE RECONSIDERED BY THE COMMISSIONER OF INCOME-TA X. CANCELLATION OF REGISTRATION UNDER SECTION 12AA OF THE ACT OF A CHARITABLE TRUST HITHERTO ENJOYING THE BENEFIT OF R EGISTRATION UNDER SECTION 12A IS TO BE TREATED AS AN EXCEPTIONAL SITU ATION AND REGISTRATION CANNOT BE CANCELLED IN A CASUAL MANNER . WHILE THE ASSESSEE WAS GRANTED A PRIVILEGE AUTHORIZED BY STAT UTE, THE SAME CAN BE WITHDRAWN BY ESTABLISHING COGENT REASON S AND THROUGH PASSING A SPEAKING ORDER AND THAT TOO AFTER HEARING THE ASSESSEE TRUST. 4. WE ACCORDINGLY SET ASIDE THE ORDER OF THE COMMISSIONER OF INCOME-TAX AND REMIT BACK THE FILE TO HIM SO - - ITA 2155 & SP 118 OF 2012 3 THAT HE CAN RE-EXAMINE THE ISSUE IN A DETAILED MANN ER IN THE LIGHT OF THE FACTS AND THE CIRCUMSTANCES EXPLAINED BEFORE HIM AND ULTIMATELY TO PASS AN ORDER IN ACCORDANCE WITH LAW. 5. THIS APPEAL FILED BY THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND THE FIL E IS REMITTED BACK TO THE COMMISSIONER OF INCOME-TAX, MADURAI. 6. AS THE APPEAL ITSELF IS DISPOSED OFF, THE STAY PETITION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS. 7. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND THE STAY PETITION IS DISMISSED AS INFRUCTUOUS. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON FRIDAY, THE 14 TH OF DECEMBER, 2012 AT CHENNAI. SD/- SD/- (DR. O.K.NARAYANAN) (S.S.GODARA) VICE-PRESIDENT JUDICIAL MEMBER CHENNAI, DATED, THE 14 TH DECEMBER, 2012. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5 . DR 6.GF.