ITO (OSD), Chengalput V. The Trust Association of the Advent Christian Conference of India Private Ltd., CHENNAI

ITA 2249/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96157 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-08-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 08-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR B NISCHAL
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence
• Section: 12AA; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' $ , % ' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NO.2249/MDS/2014 ( / ASSESSMENT YEAR: 2009-10) THE INCOME TAX OFFICER (OSD) (EXEMPTIONS)-III, AAYAKAR BHAVAN, ANNEX BUILDING, 3 RD FLOOR, CHENNAI-600 024. VS M/S. THE TRUST ASSOCIATION OF THE ADVENT CHRISTIAN CONFERENCE OF INDIA PVT.LTD., 163, AAM COMPOUND, GANDHI SALAI, VELACHERY, CHENNAI - 600 078. PAN:AACCT4029K ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : DR.B.NISCHAL, JCIT /RESPONDENT BY : MRS. PUSHYA SITARAMAN, SR.ADVOCATE FOR J.SREE VIDYA, ADVOCATE /DATE OF HEARING : 18 TH AUGUST, 2015 /DATE OF PRONOUNCEMENT : 23 RD SEPTEMBER, 2015 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-VII, CHENN AI DATED 22.05.2014 FOR THE ASSESSMENT YEAR 2009-10. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL:- 2. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN ADMITTING FRESH/ADDITIONAL EVIDENCES WITHOUT ALLOWI NG REASONABLE OPPORTUNITY TO THE ASSESSING OFFICER IN VIOLATION OF RULE 46A OF THE I.T. RULES. 2 ITA NO.2249/MDS/2014 3.1 COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT ASSESSEE HAS VIOLATED THE PROVISIONS UNDER SECTION 13(1)(D) OF THE ACT BY INV ESTING ` 2,61,93,075/- IN M/S. ADVENT CHRISTIAN CONFERENCE O F INDIA WHICH IS SHOWN ON THE ASSET SIDE OF THE BALAN CE SHEET. 3.2 COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN HOLDING THAT THE VIOLATION U/S.13(1)(D) R.W.S. 11(5 ) OF THE ACT IS AN APPARENT VIOLATION DUE TO WRONG METHOD OF ACCOUNTING WITHOUT TAKING COGNIZANCE TO THE FACT TH AT THE SAME HAD ALREADY BEEN FILED BEFORE THE REGISTRAR OF COMPANIES. 4. COMMISSIONER OF INCOME TAX (APPEALS) OUGHT NOT TO HAVE ACCEPTED THE REVISED STATEMENT OF ACCOUNTS CREATED AFTER THE COMPLETION OF ASSESSMENT. 5.1 COMMISSIONER OF INCOME TAX (APPEALS) FAILED TO TAKE NOTE THAT M/S.ADVENT CHRISTIAN CONFERENCE OF I NDIA IS NOT A REGISTERED ENTITY UNDER SECTION 12AA OF TH E ACT. 5.2 COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE NOTED THAT THE AMOUNT PAID TO AN ENTITY NOT REGISTERED UNDER SECTION 12AA CANNOT BE CONSIDERED FOR APPLICATION OF INCOME. 6. COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THE FACT THAT MEMBERS OF THE EXECU TIVE COMMITTEE OF THE ADVENT CHRISTIAN CONFERENCE OF IND IA ARE ALSO THE OFFICE BEARERS OF THE ASSESSEE TRUST, THEREBY THE ASSESSEE HAS VIOLATED THE PROVISIONS OF SECTION 13(1)(C) R.W.S. 13(3)(E) OF THE ACT. 7. THE COMMISSIONER OF INCOME TAX (APPEALS) FAILED TO NOTE THAT THE ASSESSEE HAS VIOLATED ITS OBJECTS BY SPENDING MONEY ON MAINTENANCE OF CHURCHES. 3. AT THE OUTSET, THE DEPARTMENTAL REPRESENTATIVE SUBMITS THAT COMMISSIONER OF INCOME TAX (APPEALS) E RRED IN ADMITTING THE ADDITIONAL EVIDENCES WITHOUT ALLOWING REASONABLE OPPORTUNITY TO THE ASSESSING OFFICER WHI CH IS IN 3 ITA NO.2249/MDS/2014 VIOLATION OF RULE 46A OF THE INCOME TAX RULES. DEPA RTMENTAL REPRESENTATIVE SUBMITS THAT ADDITIONAL EVIDENCES IN THE FORM OF PAPER BOOK CONTAINING PAGES 1 TO 250 WAS FILED BY THE ASSESSEE BEFORE THE COMMISSIONER OF INCOME TAX (APP EALS) BASED ON WHICH THE COMMISSIONER OF INCOME TAX (APPE ALS) CONCLUDED THAT THERE IS NO VIOLATION UNDER THE PROV ISIONS OF SECTION 13(1)(D) AND 13(1)(C) OF THE ACT AND THEREF ORE THE ASSESSEE IS ENTITLED FOR EXEMPTION UNDER SECTION 11 OF THE ACT, WHICH IS NOT PROPER AND JUSTIFIED AND IN VIOLA TION OF PRINCIPLES OF NATURAL JUSTICE. DEPARTMENTAL REPRESE NTATIVE SUBMITS THAT COMMISSIONER OF INCOME TAX (APPEALS) S HOULD HAVE CALLED FOR REMAND REPORT AS THE ASSESSEE HAS F ILED VOLUMINOUS EVIDENCES BEFORE DISPOSING OFF THE APPEA L. 4. ON A QUERY FROM THE BENCH TO THE COUNSEL FOR THE ASSESSEE REGARDING ADDITIONAL EVIDENCES PRODUCED FO R THE FIRST TIME BEFORE THE COMMISSIONER OF INCOME TAX (A PPEALS), COUNSEL SUBMITS THAT HE HAS NO SERIOUS OBJECTION IN REMITTING THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICE R FOR FRESH ADJUDICATION. 5. ON HEARING BOTH THE PARTIES AND ON GOING THROUGH THE ORDERS OF LOWER AUTHORITIES AND THE ADDITIONAL EVI DENCES 4 ITA NO.2249/MDS/2014 PRODUCED BY THE ASSESSEE BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS), WE ARE OF THE CONSIDERED VIEW THAT ASSESSING OFFICER SHOULD HAVE BEEN GIVEN REASONABLE OPPORTUNITY BY THE COMMISSIONER OF INCOME TAX (APPE ALS) BY CALLING FOR REMAND REPORT WHICH HE FAILED TO DO SO RENDERED THE ORDER ALLOWING THE APPEAL OF THE ASSESSEE IN VI OLATION OF PRINCIPLES OF NATURAL JUSTICE. THUS, WE RESTORE THE ASSESSMENT BACK TO THE FILE OF THE ASSESSING OFFICER FOR DE NO VO CONSIDERATION IN ACCORDANCE WITH LAW, AFTER PROVIDI NG ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . 6. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD SEPTEMBER, 2015. SD/- SD/- ( # ) ( & (# ) ( CHANDRA POOJARI ) ( CHALLA NAG ENDRA PRASAD ) * / ACCOUNTANT MEMBER ( * / JUDICIAL MEMBER ( /CHENNAI, , /DATED 23 RD SEPTEMBER, 2015 SOMU ./ 0/ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. 1 () /CIT(A) 4. 1 /CIT 5. / 5 /DR 6. /GF .