M/s Vinushri Nanjesh Janseva Trust , Mysore V. The Income Tax Officer Ward-1 , Mysore

ITA 2271/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2326 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 01-11-2018
• Assessment Year: 2015-2016
• Appeal Filed On: 27-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-C BENCH, BANGALORE BEFORE SHRI. SUNIL KUMAR YADAV, JUDICIAL MEMBER ITA NO. 2271 /BANG/201 8 ASSESSMENT YEAR : 20 1 5 - 1 6 M/S. VINUSHRI NANJESH JANSEVA TRUST, NO. 46/3, 1 ST FLOOR, GOKULAM MAIN ROAD, V. V. MOHALLA, MYSURU. PAN : AABTV 8341 G VS. THE INCOME-TAX OFFICER, WARD 1, MYSURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI. SURESH MUTHUKRISHNAN , CA REVENUE BY : SHRI. PRIYADARSHI MISHRA, JCIT, SPECIAL RANGE - III DATE OF HEARING : 13 /0 8 /201 8 DATE OF PR ONOUNCEMENT : 07 / 0 9 /201 8 O R D E R PER SUNIL KUMAR YADAV, JM : THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), INTER ALIA, ON FOLLOWING GROUNDS: 1. THE ORDER OF THE AUTHORITIES BELOW IN SO FAR AS IT IS AGAINST THE APPELLANT IS OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES, FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE ORDER PASSED BY LD. A.0 AND UPHELD BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS ARBITRARY IN AS MUCH AS THE SAME WAS MADE WITHOUT PROVIDING THE MANDATORY OPPORTUNITY TO BE HEARD UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LEARNED AO HAS ERRED IN CONCLUDING THAT REGISTRATION U/S.12AA OF THE ACT IS MANDATORY FOR ASSESSMENT OF A TRUST UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. ITA NOS. 2269 AND 2270/BANG/2018 PAGE 2 OF 3 4. THE LEARNED AO IS ERRED IN ASSESSING THE APPELLANT AS AN AOP AS AGAINST ITS RETURNED STATUS AS A PUBLIC CHARITABLE TRUST UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. THE LEARNED AO HAS ERRED IN BRINGING TO TAX A SUM OF RS.26,02,000/- BEING CORPUS DONATIONS RECEIVED BY THE APPELLANT ON AN ERRONEOUS APPRECIATION OF THE PROVISIONS OF SECTION 2(24) (IIA) OF THE ACT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 6. THE LEARNED AO HAS ERRED TO APPRECIATE THE FACT THAT DONATIONS RECEIVED TOWARDS THE CORPUS ARE TIED TO SPECIFIC PURPOSES AND AS SUCH ARE CAPITAL IN NATURE AND OUTSIDE THE PURVIEW AND TAXING THE SAME WOULD BE CONTRARY TO THE STATED PRINCIPLES OF LAW. 7. THE APPELLANT DENIES HIMSELF BEING LIABLE FOR THE INTEREST U/S. 234A AND 2348 OF THE ACT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 8. THE APPELLANT CRAVES LEAVE OF YOUR HONOR TO ADD, ALTER, AMEND, RECTIFY AND DELETE ANY GROUNDS URGED ABOVE. 9. FOR THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL, YOUR APPELLANT HUMBLY PRAYS THAT THE APPEAL MAY BE ALLOWED AND JUSTICE RENDERED. 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT APPEAL WAS FIXED FOR HEARING BEFORE THE CIT(A) ONLY FOR ONE DAY ON WHICH ASSESSEE SOUGHT THE ADJOURNMENT. THE CIT(A) DECLINED THE ADJOURNMENT AND DISPOSED OFF THE APPEAL EX-PARTE. THEREFORE THE ORDER OF THE CIT(A) MAY BE SET ASIDE AND MATTER BE RESTORED TO HIS FILE FOR THE ADJUDICATION OF THE APPEAL ON MERIT. THE LEARNED DR PLACED A RELIANCE UPON THE ORDER OF THE CIT(A). 3. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT(A), I FIND THAT CIT(A) HAS NOT AFFORDED DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HE RATHER DECLINED THE ADJOURNMENT SOUGHT BY THE ASSESSEE AND DISPOSED OFF THE APPEAL ONLY IN ONE DAY. I, ITA NOS. 2269 AND 2270/BANG/2018 PAGE 3 OF 3 THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO DISPOSE OFF THE APPEAL ON MERIT AFTER AFFORDING OPPORTUNITY OF BEING HEARD ON MERIT. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 7 TH SEPTEMBER, 2018. SD/ - SD/- (A. K. GARODIA ) (SUNIL KUMAR Y ADAV ) ACCOUNTANT M EMBER JUDICI AL MEMBER PLACE : BANGALORE DATED : 07/09/2018 /NS/* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5. DR 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME- TAX APPELLATE TRIBUNAL BANGALORE