Institute for Advanced Studies in Complex Choices, Hyderabad V. Commissioner of Income Tax, (Exemptions), Hyderabad

ITA 2232/Hyd/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7275 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 07-11-2019
• Assessment Year: misc
• Appeal Filed On: 29-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 80G; 12A; 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 2232 / HYD/20 18 INSTITUTE FOR A DVANCED S TUDIES IN COMPLEX CHOICES, HYDERABAD. PAN: AABTI 4377 D VS. CIT (EXEMPTIONS), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI G.V.V.S. MURTY, AR REVENUE BY: SRI Y.V.S.T. SAI, CIT - DR DATE OF HEARING: 07/11/2019 DATE OF PRONOUNCEMENT: 31 / 01/2020 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT (EXEMPTIONS), HYDERABAD IN F.NO. CIT (E) /HYD /3(03)/80G/2017 - 18, DATED 28/09/2018 PASSED U/S. 80G(5)(VI) & U/S. 250(6) OF THE ACT. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL: 1. THE ORDER PASSED BY THE LD. CIT (E) IS CONTRARY TO LAW AND FACTS EVIDENCE ON RECORD. 2. THE LD CIT (E) WAS NOT JUSTIFIED IN STATING THAT THERE WAS NON - COMPLIANCE ON THE PART OF THE ASSESSEE BECAUSE OF WHICH IT W A S NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE IGNORING THE DETAILS AND DOCUMENTS SUBMITTED BEFORE HIM BY THE ASSESSEE THROUGH ITS LETTER FILED ON 2 24/08/2018, WHICH WAS IN RESPONSE TO LETTER DATED 2/7/2018 ISSUED BY HIS OFFICE. 3. THE LD CIT (E) SHOULD HAVE NOTED THAT THE ASSESSEE BY ITS LETTER DATED 24/08/2018 SUBMITTED THAT HE ASSESSEE TRUST FULFILLED THE CONDIT IONS LAID DOWN UNDER CLAUSES (I) TO (VI) OF SECTION 80G(5) OF THE ACT VIDE PARA 4 OF THE LETTER DATED 24/8/2018. 4. LIKEWISE, THE LD CIT (E) SHOULD HAVE NOTED FROM THE ABOVE LETTER THAT THE ASSESSEE SUBMITTED THE PRECISE NATURE OF THE CHARITABLE ACTIVITIES UNDERTAKEN BY THE TRUST, DETAILS OF RESEARCH PAPERS PUBLISHED ON ITS WEBSITE, BANK STATEMENT OF THE TRUST FROM THE INCEPTION, HOW THE SALARY PAID TO THE LONE EMPLOYEE AT RS. 2,00,000 PM WAS JUSTIFIED, BRIEF NOTE ON THE ACTIVITIES OF THE TRUST, FURTHER RES EARCH UNDER PROGRESS BALANCE SHEET AND P & L ACCOUNT FOR THE PERIOD ENDING ON 31/3/2018, TRUST DEED AND ADDENDUM THERETO (BOTH REGISTERED) AND IF THESE PAPERS / DOCUMENTS ARE GONE THROUGH, THE LD CIT (E) WOULD HAVE FOUND THAT THE ASSESSEE - TRUST WAS ELIGIBL E FOR GRANTING EXEMPTION U/S. 80G(5)(VI) OF THE ACT. 5. THE SAME LD CIT (E) HAVING SATISFIED WITH THE ACTIVITIES OF THE ASSESSEE - TRUST GRANTED EARLIER APPROVAL U/S. 12AA OF THE ACT, SHOULD NOT HAVE NOW HELD THAT THE ACTIVITIES ARE NOT CHARITABLE IN NATURE. 6. FOR THESE AND ANY OTHER GROUND OR GROUND OF APPEAL THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ASSESSEE - TRUST BE GRANTED EXEMPTION AS SOUGHT FOR. 3. THE LD. AR SUBMITTED BEFORE US THAT THE LD. CIT (E) HAS ERRONEOUSLY HELD THAT THE ASSESSEES ACTIVITIES ARE NOT CHARITABLE IN NATURE AS DEFINED U/S. 2(15) OF THE ACT MERELY BECAUSE CERTAIN ACTIVITIES MENTIONED IN THE TRUST DEED ARE NOT CHARITABLE AND THEREBY INITIAT ED SEPARATE PROCEEDINGS FOR CANCELLING THE REGISTRATION GRANTED EARLIER U/S. 12A OF THE ACT. THE LD. AR FURTHER SUBMITTED THAT THE LD. CIT(E) ERRED BY NOT GRANTING REGISTRATION U/S. 80G OF THE ACT. THE LD. DR ON THE OTHER HAND VEHEMENTLY ARGUED IN SUPPORT OF THE ORDER OF THE LD. CIT (E). 3 4. WE HAVE HEARD THE RIVAL SUBMISSIO NS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. AT THE OUTSET, WE FIND THAT NEITHER THE ASSESSEE NOR ITS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (E) AT THE TIME OF HEARING AND THEREFORE, THE LD. CIT (E) WAS LEFT WITH NO OTHER OPTION BUT TO PASS EX - PA RTE ORDER. HOWEVER, CONSIDERING THE PRAYER OF THE LD. AR, IN THE INTEREST OF JUSTICE, WE HEREBY REMIT BACK THE MATTER TO THE FILE OF LD. CIT (E) FOR DE NOVO CONSIDERATION THEREBY PROVIDING THE ASSESSEE WITH ONE MORE OPPORTUNITY OF BEING HEARD. WE ALSO CA UTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (E) FAILING WHICH THE LD. CIT (E) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH MERIT AND LAW BASED ON THE MATERIALS ON RECORD. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY, 2020 . SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 31 ST JANUARY, 2020. OKK COPY TO: - 1) INSTITUTE FOR ADVANCES STUDIES IN COMPLEX CHOICES , D.NO.26, QUIET LANDS, GACHIBOWLI, HYDERABAD 500 032. 4 2) THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), 3 RD FLOOR, AAYAKAR BHAVAN, HYDERABAD. 3) (I) THE ADDL. CIT (E), HYDERABAD. (II) ITO (E) - 2, HYDERABAD. 4) THE PR. CIT (EXEMPTIONS) , HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE