Gopsai Avinandan Sangha, Paschim Medinipur V. CIT, Kol-XIX, Kolkata, Kolkata

ITA 2157/KOL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1871 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 02-02-2017
• Assessment Year: misc
• Appeal Filed On: 01-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MD USMAN
• Keywords: Charitable institution
• Section: 12AA; 12

Judgement Text

1 ITA NOS.2244 & 2245/KOL/2013& 2156&2157/KOL/2014-GO PSAI AVINANDAN SANGHA IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B KOL KATA [BEFORE HONBLE SHRI N.V.VASUDEVAN, JM & DR.ARJUN LAL SAINI, AM ] ITA NOS.2244 & 2245/KOL/2013 ASSESSMENT YEAR : 2013-14 GOPSAI AVINANDAN SANGHA -VERSUS- C.I.T., KOL-XIX, KOLKATA KOLKATA (PAN:AAATG 8930 F)) (APPELLANT) (RESPONDENT) ITA NOS.2156 & 2157/KOL/2014 GOPSAI AVINANDAN SANGHA -VERSUS- C.I.T., KOL-XIX, KOLKATA KOLKATA (PAN:AAATG 8930 F)) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI SOMNATH GHOSH, ADVOCA TE FOR THE RESPONDENT: MD. USMAN, CIT(DR) DATE OF HEARING : 21.12.2017. DATE OF PRONOUNCEMENT : 03.01.2018. ORDER PER BENCH ITA NO.2244/KOL/2013 IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 03.07.2013 OF CIT-KOL-XIX, KOLKATA PASSED U/S 12 AA OF THE INCOME TAX ACT, 1961 (ACT) REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT. THE APPLICATION FOR GRANT OF REGISTRATION WAS MADE BY THE ASSESSEE IN FORM-10A ON 07.01.2013. ITA NO.2245/KOL/2013 IS AN APPEAL B Y THE ASSESSEE AGAINST THE ORDER DATED 03.07.2013 OF CIT-KOL-XIX, KOLKATA REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT. TH E APPLICATION FOR GRANT OF APPROVAL WAS FILED BY THE ASSESSEE ON 07.01.2013. ITA NO.2156/KOL/2014 IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 31.10.2014 OF CIT-KOL-XIX, KOLKATA REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT. THE ASSE SSEE HAD APPLIED FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IN FORM-10A ON 28. 04.2014. ITA NO.2157/KOL/2014 2 ITA NOS.2244 & 2245/KOL/2013& 2156&2157/KOL/2014-GO PSAI AVINANDAN SANGHA IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATE D 28.04.2014 OF CIT-KOL-XIX, KOLKATA REJECTING THE APPLICATION OF THE ASSESSEE F OR GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT. THE APPLICATION FOR GRANT OF APPROVAL W AS FILED BY THE ASSESSEE ON 28.04.2014. 2. WHEN THESE APPEALS CAME UP FOR HEARING THE LD. C OUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE THE APPLICATION FOR REGISTRATI ON U/S 12AA OF THE ACT AS WELL AS APPROVAL U/S 80G(5)(VI) OF THE ACT RELATE TO ONE AN D THE SAME ASSESSEE HE WOULD PRESS FOR AN ADJUDICATION OF THE ASSESSEES APPLICATION I N FORM-10A FOR REGISTRATION U/S 12AA OF THE ACT DATED 07.01.2013 AND THE APPLICATIO N FOR GRANT OF APPROVAL U./S 80G(5)(VI) OF THE ACT DATED 07.01.2013. HE THEREFOR E PRAYED THAT ITA NOS.2156 & 2157/KOL/2014 WHICH ARISE OUT OF THE APPLICATION IN FORM-10A FOR GRANT OF REGISTRATION U/S 12AA DATED 28.04.2014 AND FOR GRAN T OF APPROVAL U/S 80G(5)(VI) OF THE ACT DATED 28.04.2014MAY BE DISMISSED AS NOT PRESSED . ACCORDINGLY ITA NOS.2156 & 2157/KOL/2014 ARE DISMISSED AS NOT PRESSED. 3. AS FAR AS ITA NO.2244/KOL/2013 IS CONCERNED THE FACTS ARE THAT THE ASSESSEE IS A REGISTERED SOCIETY UNDER THE SOCIETIES REGISTRATI ON ACT OF THE GOVERNMENT OF WEST BENGAL DULY REGISTERED ON 14.08.2003. IT WAS CREATE D FOR THE PURPOSE OF CARRYING OUT THE CHARITABLE PURPOSE OF IMPARTING EDUCATION. THE ASSESSEE APPLIED FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IN FORM-10A ON 07. 01.2013. THE ASSESSEE ALSO APPLIED FOR GRANT OF APPROVAL U/S 80G(5)(VI) ON 07. 01.2013. THE CIT ON PERUSAL OF THE MEMORANDUM OF THE ASSOCIATION NOTICED THAT THERE WA S A CLAUSE FOR DISSOLUTION OF THE ASSOCIATION. IT HAS BEEN PROVIDED THAT THE SOCIETY MAY BE DISSOLVED BY A RESOLUTION TO THAT EFFECT PASSED BY THREE FOURTH MEMBERS OF THE S OCIETY AT A JOINT MEETING. IT WAS ALSO PROVIDED THAT THE SAID MEETING WOULD ALSO DEC IDE THE MANNER OF DISBURSING OF THE FUNDS AND ASSETS OF THE ASSOCIATION, IF ANY, AFTER DISSOLUTION AS PER THE PROVISIONS OF THE ACT. THE CIT WAS OF THE VIEW THAT IN THE EVENT OF D ISSOLUTION OF THE ASSESSEE THERE WAS NO GUARANTEE THAT THE FUNDS WILL BE APPLIED TOWARDS THE PURPOSE OF CHARITY. THE CIT IN A LETTER DATED 13.03.2013 CALLED UPON THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNTS OF THE SOCIETY ON A HEARING HELD ON 06.05.2013. THE AS SESSEE WAS ASKED TO APPEAR ON 04.06.2013 FOR VERIFICATION OF THE DETAILS. ON 04.0 6.2013 NONE APPEARED. THE CIT 3 ITA NOS.2244 & 2245/KOL/2013& 2156&2157/KOL/2014-GO PSAI AVINANDAN SANGHA MADE A REFERENCE TO THE FACT THAT IN A LETTER DATED 09.04.2013 THE SECRETARY OF THE ASSESSEE INTIMATED THE OFFICE OF THE CIT HIS INABIL ITY TO PRODUCE THE BOOKS OF ACCOUNTS AND RELATED DOCUMENTS FOR VERIFICATION. IT APPEARS THAT BY A LETTER DATED 24.06.2013 THE CIT GAVE LAST OPPORTUNITY FOR THE ASSESSEE TO APPEA R ON 03.07.2013 TO ITS OFFICE BEARERS FOR VERIFICATION OF BOOKS OF ACCOUNTS AND OTHER DET AILS. IT APPEARS THAT ON 03.07.2013 A LETTER WAS SUBMITTED IN THE OFFICE OF CIT BUT BOOKS OF ACCOUNTS WERE NOT PRODUCED FOR VERIFICATION. IN THESE CIRCUMSTANCES THE CIT CAME T O THE CONCLUSION THAT THE ASSESSEE FAILED TO SATISFACTORILY EXPLAIN THE GENUINENESS O F ITS ACTIVITIES AND THEREFORE THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT WA S BEING REJECTED. FOR IDENTICAL REASON THE APPLICATION FOR GRANT OF APPROVAL U/S 80 G(5)(VI) OF THE ACT WAS ALSO REJECTED. 4. AGGRIEVED BY THE AFORESAID ORDERS OF CIT THE ASS ESSEE HAS FILED THE PRESENT APPEALS BEFORE THE TRIBUNAL. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. IT WAS STAT ED BY THE LD. COUNSEL FOR THE ASSESSEE BEFORE US THAT AT THE TIME OF FILLING APPL ICATIONS, THE ASSESSEE ANNEXED THE FOLLOWING DOCUMENTS WITH DULY FILLED FORM NO. L0A A ND FORM NO. 10G: (I) COMPLETE SETS OF AUDITED BALANCE SHEET AND AUDI T REPORT FOR THE ASSESSMENT YEARS 2012-13,2011-12 AND 2010-11; (II) MEMORANDUM OF ASSOCIATION AND RULES & REGULATI ONS OF THE TRUST; (III) CERTIFICATE OF REGISTRATION OF SOCIETIES; AND (IV) LIST OF GOVERNING BODY MEMBERS. DURING HEARING, THE ASSESSEE APPEARED BEFORE THE C OMMISSIONER OF INCOME TAX, KOLKATA - XIX AND SUBMITTED ALL THE DOCUMENTS. EVEN ON THE LAST DAY OF HEARING I.E. ON 3RD JULY, 2013 THE ASSESSEE APPEARED BEFORE THE CO MMISSIONER OF INCOME TAX, KOLKATA - XIX, WITH THE DOCUMENTS AS REQUIRED BY TH E COMMISSIONER OF INCOME TAX, KOLKATA - XIX. THE COMMISSIONER OF INCOME TAX, KOLK ATA - XIX, WITHOUT DISPOSING OF THE APPLICATIONS ON MERIT, DISMISSED THE MATTER FOR DEFAULT. 4 ITA NOS.2244 & 2245/KOL/2013& 2156&2157/KOL/2014-GO PSAI AVINANDAN SANGHA 6. KEEPING IN MIND THE ABOVE SUBMISSIONS AND ALSO T AKING NOTE OF THE FACT THAT ULTIMATELY THE ELIGIBILITY OF THE ASSESSEE FOR REGI STRATION U/S 12AA OF THE ACT AND APPROVAL U/S 80G(5)(VI) OF THE ACT HAS TO BE DECIDE D ON MERITS RATHER THAN ON THE BASIS OF DEFAULT BY THE ASSESSEE, WE ARE OF THE VIEW THAT THE IMPUGNED ORDERS OF THE CIT SHOULD BE SET ASIDE AND THE ISSUE WITH REGARD TO TH E GRANT OF REGISTRATION U/S 12AA OF THE ACT AND THE APPROVAL U/S 80G(5)(VI) OF THE ACT SHOULD BE DIRECTED TO BE CONSIDERED AFRESH BY CIT AFTER AFFORDING THE ASSESSEE OPPORTUN ITY OF BEING HEARD. THE CIT SHOULD TAKE INTO CONSIDERATION THE DOCUMENTS ALREADY FILE D BY THE ASSESSEE AND ALSO PERMIT THE ASSESSEE TO PRODUCE OTHER DOCUMENTS AS MAY BE N ECESSARY OR CALLED FOR BY THE CIT. THE CIT WILL THEREAFTER DECIDE THE APPLICATIONS IN ACCORDANCE WITH LAW. FOR STATISTICAL PURPOSES THE APPEALS ARE TREATED AS ALLOWED. 7. IN THE RESULT ITA NOS.2244 & 2245/KOL/2013 ARE A LLOWED FOR STATISTICAL PURPOSES. ITA NOS.2156 & 2157/KOL/2014 ARE DISMISSE D AS NOT PRESSED. O RDER PRONOUNCED IN THE OPEN COURT ON 03.01.2018. SD/- SD/- [DR.ARJUN LAL SAINI] [ N.V.VASUDEVAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 03.01.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.GOPSAI AVINANDAN SANGHA, VILLAGE-GOPSAI, P.O.CHAN DRAKONA TOWN, DISTRICT- PASCHIM MEDINPUR, WEST BENGAL-721 201. 2. C.I.T., KOLKATA-XIX, KOLKATA.. 3. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/ D.D.O., ITAT KOLKATA BENCHES 5 ITA NOS.2244 & 2245/KOL/2013& 2156&2157/KOL/2014-GO PSAI AVINANDAN SANGHA