Vijjis Foundation, Visakhapatnam V. The Income Tax Officer (Exemptions), Visakhapatnam

ITA 224/VIZ/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5553 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Appeal Filed On: 12-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K S RAJENDRA KUMAR
• Keywords: Set aside
• Section: 80G; 12A; 12AA; 12; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI N.K. CHOUDHRY, HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON'BLE ACCOUNTANT MEMBER I.T.A. NO S . 224 & 225 /VIZ/2020 VIJJIS FOUNDATION, D.NO. 1 - 156/1, KOMMADI, VISAKHAPATNAM VS. ITO (EXEMPTIONS), VISAKHAPATNAM. PAN NO. AADTV 1410 C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.V.N. HARI, ADVOCATE. DEPARTMENT BY : SH RI K.S.RAJENDRA KUMAR , SR. DR DATE OF HEARING : 26 / 0 4 /2021 . DATE OF PRONOUNCEMENT : 10 / 0 5 /2021 . O R D E R PER N.K. CHOUDHRY , JUDICIAL MEMBER TH ESE APPEAL S HA VE BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER S DATED 19/09 /20 20 IMPUGNED HEREIN PASSED BY THE LD. COMMISSIONER OF INCOME TAX ( EXEMPTION ) [FOR SHORT , LD. COMMISSIONER] , HYDERABAD U/SEC. 1 2 - AA AND 80 - G OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') . 2. IN THIS CASE, APPLICATION S FILED BY THE APPELLANT ON DATED 13/05/2020 FOR REGISTRATION U/SEC. 12A AND 80G OF THE ACT WERE TAKEN 2 ITA NO. 224 & 225/VIZ/2020 ( VIJJIS FOUNDATION ) INTO CONSIDERATION BY LD. COMMISSIONER WHILE ISSUING THE NOTICE ON DATED 06/07/2020 BY WHICH THE APPELLANT WAS ASKED TO APPEAR AND PRODUCE ITS ORIGINAL ME MORANDUM OF ASSOCIATION (MOA)/TRUST DEED FOR VERIFICATION AND TO FURNISH A DETAILED REPLY ON SPECIFIC POINTS ON OR BEFORE 13/07/2020, WHICH REMAINED UN - COMPLIED. THEREAFTER AGAIN NOTICE S WERE ISSUED ON DATED 04/09/2020 BY WHICH THE APPELLANT WAS ASKED TO SUBMIT THE DOCUMENTS AS PER THE QUESTIONNAIRE GIVEN IN DETAIL ON OR BEFORE 11/09/2020 THROUGH E - MAIL/E - PROCEEDINGS, WHICH ALSO REMAINED UN - COMPLIED AND THEREFORE IN CONSTRAINED CIRCUMSTANCES, THE LD . COMMISSIONER REJECTED THE APPLICATION S AGAINST WHICH THE APPELLANT PREFERRED THE INSTANT APPEALS. 3. HAVING HEARD THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. T HE LD. COMMISSIONER IN THE ABSENCE OF PROPER PLEADINGS, INFORMATION, DOCUMENTS AND SATISFACTION WHILE REJECTING APPLICA TION F O R GRANT OF REGISTRATION U/S 12A OF THE ACT HELD THAT IN THE ABSENCE OF ANY CHARITABLE ACTIVITIES, IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE AIMS AND OBJECTS OF THE ASSESSEE. THE APPLICANT IS NOT FIT FOR GRANT OF REGISTRATION U/S. 12AA OF THE ACT AND WHILE REJECTING APPLICATION U/S 80G OF THE ACT HELD THAT IN THE ABSENCE OF ANY CHARITABLE ACTIVITIES, IT IS NOT POSSIBLE TO VERIFY THE GENUINENESS OF THE AIMS AND OBJECTS OF THE AS SESSEE. THE ASSESSEES APPLICATION FOR REGISTRATION U/S 12A HAS BEEN REJECTED BY SEPARATE ORDER. BEFORE GRANTING APPROVAL U/S 80G, IT IS MANDATORY THAT THE ASSESSEE SHOULD HAVE 12A REGISTRATION. WE MAY OBSERVE THAT T HE LD. COMMISSIONER FAILED TO DECIDE THE APPLICATION FOR REGISTRATION U/S 12 A THE ACT IN ITS RIGHT PERSPECTIVE IN THE ABSENCE OF PROPER PLEADINGS, INFORMATION, DOCUMENTS AND 3 ITA NO. 224 & 225/VIZ/2020 ( VIJJIS FOUNDATION ) SATISFACTION , WHEREAS WHILE DECIDING THE APPLICATION U/S 80G OF THE ACT CORRECTLY HELD THAT BEFORE GRANTING APPROVAL U/S 80G, IT IS MANDATORY THAT THE ASSESSEE SHOULD HAVE 12A REGISTRATION. I N OUR CONSIDERED VIEW, THE APPELLANT/TRUST HAD REASONABLE AND BONAFIDE CAUSE FOR NOT JOINING THE PROCEEDINGS BEFORE THE LD. COMMISSIONER DUE TO COVID - 19 PANDEMIC IN THE MON THS OF MAY, JULY AND SEPTEMBER OF 2020 WHEN THE APPLICATION S U/S 12A OF THE ACT WERE FILED AND CONSIDERED, BECAUSE AT THAT PARTICULAR POINT OF TIME, THE ENTIRE NATION WAS ON HOLD AND THEREFORE THE APPELLANT FAILED TO AVAIL THE OPPORTUNITIES TO SATISFY THE LD. COMMISSIONER QUA OBJECTS AND CHARITABLE ACTIVITIES OF THE TRUST AND FURTHER FAILED TO P LEAD AND ESTABLISH ITS CASE IN PROPER MANNER. C ONSIDERING THE PECULIAR FACTS AND CIRCUMSTANCES, WE DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER S AND TO REMA ND BACK THE CASE S TO THE FILE OF LD. COMMISSIONER FOR DECISION AFRESH ON MERITS, WHILE AFFORDING REASONABLE OPPORTUNITY (S) OF BEING HEARD TO THE APPELLANT. HENCE ORDERED ACCORDINGLY. 4. IN THE RESULT, APPEAL S FILED BY THE APPELLANT STANDS ALLOWED FOR STATISTICAL PURPOSE. ORDER PR ONOUNCED IN OPEN COURT ON THIS 1 0 T H DAY OF MAY, 2021. S D / - S D / - (D.S. SUNDER SINGH) ( N.K. CHOUDHRY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 0 T H MAY , 20 2 1 . VR/ - 4 ITA NO. 224 & 225/VIZ/2020 ( VIJJIS FOUNDATION ) COPY TO: 1. THE ASSESSEE - VIJJIS FOUNDATION, D.NO. 1 - 156/1, KOMMADI, VISAKHAPATNAM 2. THE REVENUE ITO (EXEMPTIONS), VISAKHAPATNAM. 3. THE CIT (EXEMPTION) , HYDERABAD. 4. THE D.R . , VISAKHAPATNAM 5. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.