Mathru Chaya Jain Mahila Sanghatan, Bangalore V. Commissioner Of Income Tax (Exemptions), Bengaluru

ITA 2168/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7606 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 03-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFAR HUSSAIN BENGALURU
• Keywords: Opportunity of being heard; Condonation of delay; Set aside
• Section: 12AA; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI A.K.GARODIA , ACCOUNTANT MEMBER IT A NO. 2168/BANG/2019 ASSESSMENT YEAR : N.A. MATHRU CHAYA JAIN MAHILA SANGHATAN, NO.26, 3 RD CROSS, SHANKARAPURAM, BANGALORE 560 004. PAN: AAETM 7626E VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU. APPELLANT RESPONDENT AP PEL LANT BY : S MT. SUMAN LUNKAR, CA RE SPONDENT BY : SHRI MUZAFAR HUSSAIN , CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 13 . 0 1.20 20 DATE OF PRONOUNCEMENT : 29 . 0 1.20 20 O R D E R PER N.V. VASUDEVAN, VICE PRESIDENT ITA NO.2168/BANG/2019 IS AN APPEAL BY THE ASSESSE E AGAINST THE ORDER DATED 22.11.2018 OF CIT(EXEMPTIONS), BANGAL ORE [CIT(E)] PASSED U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 (THE ACT) REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATI ON U/S 12AA OF THE ACT. THE APPLICATION FOR GRANT OF REGISTRATION WAS MADE BY THE ASSESSEE IN FORM-10A ON 25.5.2018. ITA NO.2168/BANG/2019 PAGE 2 OF 4 2. THE ASSESSEE IS A TRUST AND STATED TO BE CREATED FOR THE PURPOSE OF CARRYING OUT CERTAIN CHARITABLE ACTIVITIES AND RUN BY LADIES. THE ASSESSEE APPLIED FOR GRANT OF REGISTRATION U/S 12AA OF THE A CT IN FORM-10A ON 25.5.2018. 3. IN THE IMPUGNED ORDER THE CIT(E) IN REJECTING AP PLICATION FOR REGISTRATION U/S.12AA OF THE ACT, THE CIT(E) HAS OB SERVED THAT A NOTICE WAS ISSUED TO THE ASSESSEE CALLING UPON THE ASSESSEE TO FILE CERTAIN DETAILS AND FIXING THE DATE OF COMPLIANCE AS 14.11.2018. ACCOR DING TO THE CIT(E), THE ASSESSEE DID NOT RESPOND TO THE SAID LETTER AND THE REFORE THE CIT(E) CAME TO THE CONCLUSION THAT HE WAS NOT IN A POSITION TO SATISFY HIMSELF ABOUT THE FULFILMENT OF THE CONDITIONS FOR GRANT OF REGISTRAT ION AND HE THEREFORE HELD THAT HE WAS NOT IN A POSITION TO VERIFY THE OBJECTS OF THE TRUST AND GENUINENESS OF ITS ACTIVITIES AND THEREFORE THE APP LICATION FOR REGISTRATION U/S 12AA OF THE ACT WAS BEING REJECTED. 4. AGGRIEVED BY THE AFORESAID ORDER OF CIT(E) THE A SSESSEE HAS FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. THERE IS A DELAY OF ABOUT 245 DAYS IN FILING THE APPEAL BY THE ASSESSEE. IN AN A PPLICATION FOR CONDONATION OF DELAY IN FILING THE APPEAL, IT HAS BEEN STATED T HAT THE ASSESSEE TRUST WAS MANAGED BY LADIES WHO WERE NOT CONVERSANT WITH THE TAX LAWS. THEY WERE ACTIVELY PURSUING FOR GETTING DONATIONS FROM PUBLIC TO CARRY OUT CHARITABLE ACTIVITIES BUT FOUND THAT IN THE ABSENCE OF GRANT O F APPROVAL U/S.80G OF THE ACT, DONORS WERE NOT WILLING TO DONATE. THEY APPRO ACHED PROFESSIONAL FOR OBTAINING APPROVAL U/S.80G OF THE ACT AND WERE INFO RMED THAT THE FIRST STEP WAS TO OBTAIN REGISTRATION U/S.12A OF THE ACT. THE REAFTER THE REJECTION OF APPLICATION U/S.12A WAS BROUGHT TO HIS NOTICE AND H E ADVISED THAT APPEAL ITA NO.2168/BANG/2019 PAGE 3 OF 4 SHOULD BE FILED BEFORE TRIBUNAL. THEREAFTER THE AP PEAL WAS FILED IMMEDIATELY. THE CONTENTS OF THE APPLICATION HAVE BEEN VERIFIED AS TRUE AND CORRECT BY THE PRESIDENT OF THE TRUST IN AN AFF IDAVIT FILED BEFORE THE TRIBUNAL. 6. CONSIDERING THE FACTS AND CIRCUMSTANCES STATED I N THE APPLICATION FOR CONDONATION OF DELAY, WE ARE SATISFIED THAT THERE W AS A REASONABLE AND SUFFICIENT CAUSE FOR THE DELAY IN FILING THE APPEAL BEFORE TRIBUNAL AND ACCORDINGLY THE SAID DELAY IS CONDONED. 7. AS FAR AS THE MERITS OF THE APPEAL REGARDING GRA NT OF REGISTRATION U/S.12A OF THE ACT IS CONCERNED, IT WAS STATED BY T HE LD. COUNSEL FOR THE ASSESSEE BEFORE US THAT THE NOTICE CALLING FOR DETA ILS AND FIXING THE CASE FOR HEARING ON 14.11.2018 TOWARDS THE END OF THE EXPIRY OF LIMITATION FOR PASSING ORDERS U/S.12A OF THE ACT WHICH EXPIRES ON 30.11.2018 WAS THE ONLY OPPORTUNITY AFFORDED TO THE ASSESSEE AND CONSI DERING THE ABSENCE OF ADEQUATE AND PROPER OPPORTUNITY THE ORDER OF CIT(E) MAY BE SET ASIDE AND THE ISSUE DECIDED AFRESH ON MERITS AFTER AFFORDING OPPORTUNITY OF BEING HEARD. DATED 20.2.2019 WAS NEVER RECEIVED BY THE AS SESSEE. KEEPING IN MIND THE SUBMISSIONS MADE BEFORE US AND TAKING NOTE OF THE FACT THAT THE TIME LIMIT FOR PASSING ORDER U/S.12AA WOULD EXPIRE ON 30.11.2018 AND THE TIME ALLOWED TO THE ASSESSEE FOR COMPLIANCE WAS NOT SUFFICIENT, WE ARE OF THE VIEW THAT THE ASSESSEE DID NOT HAVE A PROPER OP PORTUNITY OF BEING HEARD BEFORE THE CIT(E). WE THEREFORE SET ASIDE THE ORDER S OF CIT(E) AND RESTORE THE QUESTION OF GRANT OF REGISTRATION U/S.12AA OF T HE ACT TO THE CIT(E) FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW, AFTER A FFORDING THE ASSESSEE OPPORTUNITY OF BEING HEARD. ITA NO.2168/BANG/2019 PAGE 4 OF 4 8. IN THE RESULT, THE APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF JANUARY, 2020. SD/- SD/- ( A.K.GARODIA ) ( N V VA SUDEVAN ) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE, DATED, THE 29 TH JANUARY, 2020. / DESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT( E ) 5. DR, ITAT, BAN GALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.