M/s SVS Seva Samithi Trust, Visakhapatnam V. THE CIT (EXEMPTIONS), Hyderabad

ITA 225/VIZ/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94093 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 02-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G GURUSAMY
• Section: 80G; 12A

Judgement Text

ITA NO.225/VIZAG/2015 M/S. S.V.S. SEVA SAMITHI TRUST, VSKP IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B.R. BASKARAN , ACCOUNTANT MEMBER ITA NO.225/VIZAG/2015 ASSESSMENT YEAR : NA M/S. S.V.S. SEVA SAMITHI TRUST VISAKHAPATNAM VS. CIT (EXEMPTIONS) HYDERABAD (APPELLANT) (RESPONDENT) PAN NO.AAJTS 4409E ASSESSEE BY: SHRI G.V.N. HARI, ADVOCATE REVENUE BY: SHRI G. GURUSAMY, CIT(DR) DATE OF HEARING : 22.07.2015 DATE OF PRONOUNCEMENT : 22.07.2015 ORDER PER D. MANMOHAN, VICE PRESIDENT:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY CIT(EXEMPTIONS), HYDERABAD WHEREIN HE OBSERVED THAT THE ASSESSEE HAVING NOT FURNISHED THE DETAILS OF DONORS, INCOME AND EXP ENDITURE STATEMENT, ETC. IT HAS TO BE ASSUMED THAT THE ASSESSEE IS NOT MAINTAIN ING REGULAR BOOKS OF ITS RECEIPTS AND EXPENDITURE WHICH IN TURN SHOWS THAT T HE ASSESSEE DOES NOT FULFILL THE CONDITIONS STIPULATED IN SECTION 80G(5) (IV) OF THE INCOME-TAX ACT, 1961. ACCORDINGLY, THE APPROVAL SOUGHT U/S 80G(5)( IV) OF THE ACT WAS REFUSED. 2. IT MAY BE NOTICED THAT THE ASSESSEE TRUST S.V.S. SEVA SAMITHI TRUST HAS FILED AN APPLICATION IN FORM 10G ON 25.9.2014 B EFORE THE COMMISSIONER OF INCOME-TAX, VISAKHAPATNAM, SEEKING APPROVAL U/S 80G( 6) OF THE ACT. LATER ON, FOLLOWING CHANGE IN JURISDICTION OVER THE CASE, THE MATTER WAS TRANSFERRED TO THE CONCERNED CIT(EXEMPTIONS) HYDERABAD ON 1.12. 2014. THE ASSESSEE WAS CALLED UPON TO FURNISH A COPY OF THE REGISTRATI ON GRANTED U/S 12A OF THE ACT AND ALSO TO FURNISH DETAILED INFORMATION ON OTH ER SPECIFIC POINTS. THE ITA NO.225/VIZAG/2015 M/S. S.V.S. SEVA SAMITHI TRUST, VSKP 2 AUTHORISED REPRESENTATIVE OF THE ASSESSEE TRUST APP EARED AND FILED CERTAIN INFORMATION. THEREAFTER, THE ASSESSEE WAS REQUESTE D TO FURNISH DETAILS OF DONORS, INCOME AND EXPENDITURE STATEMENT AND PROVIS IONAL BALANCE SHEET FOR THE CURRENT YEAR. THE INITIAL DETAILS WERE FURNISH ED ON 16.3.2015 AND THE FURTHER DETAILS WERE CALLED FOR ON 19.3.2015 BY GIV ING ONLY 3 DAYS NOTICE AND THE ASSESSEE COULD NOT COMPLY WITH THE DIRECTION WI THIN THE SHORT SPAN OF TIME. HOWEVER, HE HAS FURNISHED THE DETAILS ON 24. 3.2015, WHICH WERE NOT TAKEN INTO CONSIDERATION BY THE CIT(EXEMPTIONS). I N HIS ORDER DATED 27.3.2015, HE OBSERVED THAT THE ASSESSEE HAS NOT FU RNISHED THE DETAILS AND THEREFORE AN ADVERSE VIEW DESERVES TO BE TAKEN. HE ACCORDINGLY REFUSED TO GRANT APPROVAL U/S 80G OF THE ACT. 3. AGGRIEVED, ASSESSEE CONTENDED BEFORE THE TRIBUNA L BECAUSE OF THE SHORT NOTICE GIVEN BY THE CIT (EXEMPTIONS), DETAILS COULD NOT BE FURNISHED BUT THE FACT REMAINS THAT ON 24.3.2015 ASSESSEE FURNISH ED THE DETAILS OF DONATIONS, PROVISIONAL BALANCE SHEET AND DETAILED N OTE OF THE ACTIVITIES OF THE TRUST BUT THE SAME WAS NOT TAKEN INTO CONSIDERATION BY THE CIT(EXEMPTIONS) WHILE PASSING HIS ORDER ON 27.3.2015. THOUGH A SPE CIFIC GROUND WAS RAISED IN THIS REGARD BEFORE US, THE LD. D.R. DID NOT CROSS V ERIFY THE FACTUAL MATRIX OF THE CASE. IN FACT, THE ASSESSEE FILED THE LETTER AD DRESSED TO THE PRINCIPAL COMMISSIONER OF INCOME TAX (EXEMPTIONS) TO SHOW THAT ALL THE DETAILS WERE FURNISHED BEFORE PASSING OF THE IMPUGNED ORDER AND THE STATEMENT OF THE ASSESSEE IS NOT DISPUTED. HAVING REGARD TO THE CIR CUMSTANCES OF THE CASE AND IN THE INTEREST OF SUBSTANTIAL JUSTICE, WE ARE OF T HE VIEW THAT THE COMMISSIONER ERRED IN NOT CONSIDERING THE MATERIAL FURNISHED BEFORE PASSING THE ORDER AND THEREFORE THE IMPUGNED ORDER DATED 27 .3.2015 DESERVES TO BE SET ASIDE. WE HOLD ACCORDINGLY AND DIRECT THE CIT( EXEMPTIONS) TO RECONSIDER THE MATTER IN ACCORDANCE WITH LAW. NEEDLESS TO OBS ERVE THAT THE AUTHORITY CONCERNED WOULD TAKE INTO CONSIDERATION THE DETAILS FURNISHED ON 24.3.2015 AND MAY ALSO CALL FOR ANY FURTHER DETAILS IN SUPPOR T OF THE ASSESSEES CLAIM, IF WARRANTED. WITH THESE OBSERVATIONS, WE SET ASIDE T HE ORDER OF THE CIT(EXEMPTIONS). ITA NO.225/VIZAG/2015 M/S. S.V.S. SEVA SAMITHI TRUST, VSKP 3 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE I S TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 22 ND JULY, 2015 SD/- SD/- ( B.R. BASKARAN ) ( D. MANMOHAN ) ACCOUNTANT MEMBER VICE PRESIDENT VG/SPS VISAKHAPATNAM, DATED 22 ND JULY, 2015 COPY TO 1 M/S. S.V.S. SEVA SAMITHI TRUST, D.NO.31-50/10/120 , PLOT NO.120, LAKSHMI NARASIMHA GARDENS, DUVVADA, VISAKHAPATNAM-530 046. 2 CIT (EXEMPTIONS), HYDERABAD 3 THE ITO (EXEMPTIONS), VISAKHAPATNAM 4 THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER ASST. REGISTRAR INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM