M/s.Sapient Education Trust, Mysore V. Commissioner of Income Tax, Bangalore

ITA 2232/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7531 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 18-07-2017
• Assessment Year: misc
• Appeal Filed On: 16-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.N.PARBAT
• Assessee Lawyers: H.N. KHINCHA
• Section: 80G; 12AA; 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B E NGAL U R U BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 2232 & 223 3 / BANG/20 16 (ASSESSMENT YEAR: 20 1 6 - 17 & 2016 - 17) SAPIENT EDUCATION TRUST, NO.26 - 45 /5, II MAIN, TEMPLE ROAD, V.V.MOHALLA, MYSORE - 570 002. PAN:AAPTS61889M VS. APPELLANT COMMISSIONER OF INCOME - TAX(EXEMPTIONS) BENGALURU. RESPONDENT APPELLANT BY : SHRI H.N.KHINCHA, CA. RESPONDENT BY : SHRI R.N.PARBAT, CIT(D R) DATE OF HEARING : 25/09/2017 DATE OF PRONOUNCEMENT : 28 /09/2017 O R D E R PER I NTURI RAMA RAO, AM : ITA NO.2232/BANG/2017: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME - TAX(EXEMP TIONS)[ CIT(EXEMPTION S ) FOR SHORT ] U/S 12AA(1)(B)(II) OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] DATED 30/09/2016. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO S . 2232 & 223 3 /BANG/201 6 PAGE 2 OF 4 3. BRIEFLY FACTS OF THE CASE ARE THAT THE ASSESS EE IS A TRUST DULY REGISTERED UNDER THE PROVISIONS OF THE TRUST ACT WITH SUB - REGISTRAR, MYSORE. THE SAID TRUST WAS FORMED FOR THE PURPOSE OF IMPARTING EDUCATION. THE ASSESSEE - TRUST APPLIED FOR REGISTRATION U/S 12AA BEFORE THE CIT(EXEMPTION S ), BENGALURU. DURING THE COURSE OF PROCEEDINGS BEFORE THE CIT(EXEMPTION S ), THE ASSESSEE - TRUST FILED DETAILED EXPLANATION VIDE LETTER DATED 12/08/2016 AND SUBSEQUENTLY COPY OF THE RE - CONSTITUTED DEED EXECUTED ON 28/09/2016 DULY REGISTERED WITH THE OFFICE OF THE SUB - REG ISTRAR ON 29/09/2016 WERE E - MAILED TO THE CIT(EXEMPTION S ). HOWEVER, THE CIT(EXEMPTIONS) REJECTED REGISTRATION U/S 12AA OF THE ACT VIDE ORDER DATED 30/09/2016 ON THE GROUND THAT THE ASSESSEE HAD NOT FURNISHED DETAILS AS CALLED FOR. IT WAS SUBMITTED THAT TH E FINDING OF THE CIT(EXEMPTIONS) WAS CONTRARY TO FACTS AND THEREFORE, PRAYED THAT THE MATTER MAY BE REMITTED BACK TO ITA NO S . 2232 & 223 3 /BANG/201 6 PAGE 3 OF 4 THE FILE OF THE CIT(EXEMPTIONS) FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW. ON THE OTHER HAND, LEARNED DEPARTMENTAL REPRESENTATIVE POI NTED OUT THAT THE ASSESSEE - TRUST FAILED TO COMPLY WITH NOTICE ISSUED BY THE OFFICE OF THE CIT(EXEMPTIONS BEFORE THE SPECIFIED DATE AND INFORMATION WAS FILED AFTER THE SPECIFIED DATE IN THE NOTICE S ISSUED AND IT IS NOT A MATTER REQUIRING REMAND TO THE FILE OF THE CIT(EXEMPTIONS). 4. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ONLY ISSUE IN THE PRESENT APPEAL IS WHETHER THE CIT(EXEMPTIONS) WAS JUSTIFIED IN REJECTING THE APPLICATION FOR REGISTRATION ON THE GROUND THAT THE ASSESSEE HAD N OT COMPLIED WITH NOTICE ISSUED. DURING THE COURSE OF HEARING OF THE APPEAL, LEARNED AR OF THE ASSESSEE DEMONSTRATED THAT THE ASSESSEE HAD COMPLIED WITH ALL THE NOTICES THOUGH BELATEDLY. THEREFORE, IN OUR CONSIDERED OPINION, IT IS A FIT CASE TO REMAND THE MATTER TO THE FILE OF THE CIT(EXEMPTIONS) WITH A DIRECTION THAT THE APPLICATION MAY BE CONSIDERED AFRESH IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ITA NO.2233/BA NG/2016 : 6. IN THIS APPEAL, THE ASSESSEE CHALLENGES THE REJECTION OF APPROVAL U/S 80G OF THE ACT. SINCE IN THE ASSESSEE S APPEAL IN ITA NO.2232/BANG/2016 AGAINST REJECTION OF REGISTRATION U/S ITA NO S . 2232 & 223 3 /BANG/201 6 PAGE 4 OF 4 12AA OF THE ACT, THE MATTER WAS REMANDED BACK TO THE FILE OF TH E CIT(EXEMPTIONS) FOR PARITY OF SAME REASONING, WE REMIT THIS ISSUE ALSO TO THE FILE OF THE CIT(EXEMPTIONS) FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW. 7. IN THE RESULT, THE APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONO UNCED IN THE OPEN COURT ON 28 TH SEPTEMBER, 201 7 SD/ - SD/ - (VIJAY PAL RAO) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : B EN GAL URU D A T E D : 28 /0 9 /2017 S RINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVA TE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE