M/s. Sri Madanantha Nirantara Prasada Viniyoga Samithi Trust, Shimoga V. Commissioner Of Income Tax (Exemptions), Bangalore

ITA 222/BANG/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0689 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 18-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Assessee Lawyers: SOUMYA K
• Keywords: Charitable institution; Corroborative evidences; Set aside
• Section: 12AA; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES B BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 222 /BANG/20 20 M/S. SRI MADANANTHA NIRANTARA PRASADA VINIYOGA SAMITHI TRUST, CH - 52, 1 ST CROSS, JAYANAGARA, SHIMOGA 577 201 .APPELLANT PAN AALTS 3599K VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS) , BANGALORE. RESPONDENT. ASSESSEE BY: S MT. SOUMYA . K. ADVOCATE. REVENUE BY: SHRI MUZAFFAR HUSSAIN, . CIT (D.R) DATE OF HEARING : 09.06. 20 20. DATE OF PRONOUNCEMENT : 12 .06 .20 20. O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE REJECTING THE REGISTRATION SOUGHT UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS OF APPEAL : 2 ITA NO. 222/BANG/2020 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CHARITABLE TRUST. THE ASSESSEE HAS MADE AN APPLICATION FOR REGISTRATION UNDER SECTION 12AA ON 3 ITA NO. 222/BANG/2020 3.2.2019. T HE CIT (EXEMPTIONS) HAS ISSUED LE TTER DT.29.07.2019 CALLING FOR CERTAIN DETAILS AND CLARIFICATIONS TO BE SUBMITTED BY THE ASSESSEE TRUST BY 08.08.2019. WHEREAS THE CIT (EXEMPTIONS) IN THE ABSENCE OF DETAILS CALLED FOR FROM THE ASSESSEE , HE COULD NOT AS CERTAIN THE GENUINENESS OF THE T RUST AND ITS ACTIVIT IES AND OBSERVED THAT THE ASSESSEE IS NOT SE RIOUS IN PROSECUTING THE CASE AND REJECTED THE APPLICATION FOR REGISTRATION U/SEC12AA OF THE ACT FOR NON - COMPLIANCE ON 21.08.2019. AGGRIEVED BY THE ORDER OF CIT (EXEMPTIONS) , THE ASSESSEE HAS FIL ED AN APPEAL WITH THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE ASS ESSEE IS A GENUINE TRUST AND ITS OBJECTS AND ACTIVITIES ARE CHARITABLE IN NATURE . IN COMPLIANCE TO THE LETTER OF CIT (EXEMPTIONS) DT.29.07.2019, THE ASS ESSEE HAS SENT A REQUEST LETTER BY SPEED POST TO CIT(E) FOR SOME TIME F OR PRODUCTION OF DOCUMENTS , AS THE MANAGER OF THE T RUST WAS OUT OF COUNTRY ON MEDICAL EMERGENCY. AND THE ASSESSEE IS SERIOUS IN PROSECUTING THE APPLICATION FOR REGISTRATION U/SEC12AA OF THE ACT AND PRAYED FOR PROVIDING ONE MORE OPPORTUNITY TO R EPRESENT THE CASE WITH EVIDENCES AND DETAILS BEFORE THE CIT (EXEMPTIONS) AND ALLOW THE APPEAL. CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE C IT (EXEMPTIONS). 4 ITA NO. 222/BANG/2020 5. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, THE CIT (EXEMPTIONS) HAS REJECTED THE R E GISTRATION UNDER SECTION 12AA OF THE ACT OBSERVING THAT THE ASSESSEE HAS NOT RESPONDED TO THE OFFICE LETTER D T.29.07.2019 WITH SUBMISSIONS ON OR BE FORE 8.8.2019. BECAUSE OF NON - COMPLIANCE BY THE ASSESSEE, THE CIT (APPEALS) COULD NOT AS CERTAIN THE GENUINENESS OF THE T RUST AND ITS ACTIVITIES AND HENCE REJECTED THE A PPLICATION FOR NON - COMPLIANCE. THE LEARNED AUTHOR IZED REPRESENTATIVE SUPPORTED HER ARGUMENTS RELYIN G ON THE PAPER BOOK PAGE NO 1, THE LETTER DT.2.8.2019 SENT THR OUGH SPEED POST TO THE CIT (EX EMPTIONS) REQUEST ING TO EXTEND THE TIME FOR PRODUCTION OF DETAILS ,AS THE MANAGER OF THE TRUST WAS OUT OF COUNTR Y AND ALSO SUPPORTED WITH THE PASSPORT COPY OF THE MANAGER . WE FOUND THE SUBMISSIONS OF THE LDAR ARE REALISTIC WITH SUPPORTING EVIDENCES, AND ALSO THE TRUST IS SERIOUS IN PROSECUTING THE APPLICATION FOR R EGISTRATION UNDER SECT ION 12AA OF THE ACT. CONSIDER ING THE FACTS AND CIRCUMST ANCES, WE SET ASIDE THE ORDER OF CIT (EXEMPTIONS) AND RESTORE THE DISPUTED ISSUE TO THE FILE OF THE CIT (EXEMPTIONS) WITH THE DIRECTION TO CONSIDER AFRESH AND PASS A SPEAKING ORDER. THE ASSESSEE SHOULD BE PROVIDED ADEQUATE OPPORT UNITY OF HEARING AND SHALL CO - OPERATE IN SUBMITTING THE INFORMATION AND DETAILS FOR EARLY DISPOSAL OF THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. ACCORDINGLY, WE ALLOW THE APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES. 5 ITA NO. 222/BANG/2020 6. IN TH E RESULT, THE ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/ - SD/ - ( B.R. B ASKARAN ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 12 .06. 20 20 . *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE