Bajrang Seva Sadan, Kolkata V. CIT(Exemption) Kolkata, Kolkata

ITA 2326/KOL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1714 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2017
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2016-2017
• Appeal Filed On: 09-12-2016
• Court: TRIBUNAL
• Department Lawyers: GOULEN HANGSHING
• Keywords: Principle of natural justice; Set aside
• Section: 80G; 12A; 12AA

Judgement Text

1 ITA NOS.2326 & 2327/KOL/2016 BAJRANG SEVA SADAN. AYS 2016-17 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA [BEFORE SHRI J. SUDHAKAR REDDY, AM & SHRI A. T. VA RKEY, JM] I.T.A. NOS. 2326 TO 2327/KOL/2016 ASSESSMENT YEARS: 2016-17 BAJRANG SEVA SADAN (PAN:AACTB6544J) VS. COMMISSIONER OF INCOME-TAX (EXEMPTION), KOLKATA. APPELLANT RESPONDENT DATE OF HEARING 16.05.2017 DATE OF PRONOUNCEMENT 01.06.2017 FOR THE APPELLANT N O N E FOR THE RESPONDENT SHRI GOULEN HANGSHING, CIT, DR ORDER PER SHRI A.T.VARKEY, JM BOTH THESE APPEALS FILED BY THE ASSESSEE AGAINST TH E COMMON ORDER OF LD. CIT(E), KOLKATA DATED 05.10.2016 FOR AYS 2016-17 RE JECTING REGISTRATION U/S. 12AA OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO A S THE ACT) AND REJECTING APPROVAL U/S. 80G OF THE ACT. SINCE BOTH THESE APPEALS WERE HEARD TOGETHER AND ARISING OUT OF THE DIFFERENT ORDER OF THE LD. CIT(E), WE DISPOSE O F BOTH THESE APPEALS BY THIS COMMON ORDER. 2. NONE APPEARED ON BEHALF OF ASSESSEE, HOWEVER, AF TER PERUSING THE RECORDS, WE ARE OF THE OPINION THAT WE CAN DISPOSE OF THIS APPE AL WITHOUT THE ASSISTANCE OF LD. AR. SO, WE PROCEED TO ADJUDICATE THE ISSUES AFTER HEARI NG THE LD. DR. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE TRUST WAS CREATED ON 18.11.20 15 AND GOT REGISTERED WITH THE REGISTRAR OF ASSURANCES ON THE SAME DATE. THE TRUS T APPLIED FOR REGISTRATION U/S. 12A OF THE ACT BY FILING FORM 10A ON 08.06.2016. THE T RUST ALSO APPLIED FOR GRANT OF APPROVAL U/S. 80G(5) OF THE ACT IN FORM 10G (RULE 1 1AA) WITH THE FOLLOWING DOCUMENTS: 2 ITA NOS.2326 & 2327/KOL/2016 BAJRANG SEVA SADAN. AYS 2016-17 (I) XEROX COPY OF PAN CARD OF TRUST, (II) XEROX COPY OF BANK STATEMENT OF TRUST, (III) XEROX COPY OF PAN CARD OF DEBASHISH NAYAK (TR USTEE) & SOMEY MOHAN (TRUSTEE), (IV) XEROX COPY PASSPORT OF SOMEY MOHAN (TRUSTEE), (V) MEMO OF ACTIVITY AND (VI) COPY OF DEED. WITH THE AFORESAID DOCUMENTS THE ASSESSEE TRUST APP LIED FOR REGISTRATION U/S. 12A OF THE ACT AND APPROVAL U/S. 80G OF THE ACT. HOWEVER, THE LD. CIT(E) WAS PLEASED TO REJECT THE APPLICATION IN LIMINE BY QUOTING RULE 17A OF TH E I. T. RULES, 1962, WHICH WAS QUOTED BY LD CIT(E) AS UNDER: AN APPLICATION UNDER (CLAUSE (AA) OF SUB-SECTION (1) OF SECTION 12A FOR REGISTRATION OF A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION SHAL L BE MADE IN DUPLICATE IN FORM NO. 10A.. 3. THE LD. CIT(E) NOTES THAT DURING SCRUTINY OF THE APPLICATION SUBMITTED BY THE APPLICANT IT HAS COME TO HIS NOTICE THAT FROM 10A S UBMITTED BY THE ASSESSEE TRUST IS NOT IN THE FORMAT AS PRESCRIBED IN THE RULES, THEREFORE , HE REJECTED BOTH THE APPLICATIONS. THE MAIN GRIEVANCE OF THE ASSESSEE TRUST IS THAT TH E COLUMN NO. 2 REQUIRING PAN OF THE TRUST IN FORM 10A WAS INADVERTENTLY NOT ENTERED IN THE FORM 10A. HOWEVER, THE PHOTO COPY OF THE PAN OF THE TRUST WAS SUBMITTED IN DUPLI CATE WITH FORM 10A AS WELL AS MENTIONED AS ITEM NO. 1 IN THE COVERING LETTER DATE D 08.06.2016. SO, FROM THE GROUNDS RAISED BY THE ASSESSEE, THE CONTENTION OF THE ASSES SEE IS THAT JUST BECAUSE THE PAN PARTICULARS WERE NOT FILLED COULD NOT HAVE BEEN THE GROUND TO REJECT THE APPLICATION IN LIMINI AND THAT TOO WITHOUT GIVING AN OPPORTUNITY T O THE ASSESSEE TRUST TO RECTIFY THE MISTAKE. THEREFORE, ASSESSEES CASE IS THAT THERE IS VIOLATION OF NATURAL JUSTICE BY THE ACT OF THE LD. CIT(E). THEREFORE, THE PRAYER OF ASSESS EE IS THAT ONE MORE OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE TRUST TO MOVE THE APPLICATION FOR REGISTRATION U/S. 12A AND APPROVAL U/S. 80G OF THE ACT. LD. DR SUPPORTED THE ORDER OF THE LD. CIT(E). 3 ITA NOS.2326 & 2327/KOL/2016 BAJRANG SEVA SADAN. AYS 2016-17 4. WE HAVE HEARD LD. CIT, DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THE LD. CIT(E) VIDE HIS IMPUGNE D ORDER REJECTED THE APPLICATION OF THE ASSESSEE TRUST FOR REGISTRATION U/S. 12A OF THE ACT AS WELL AS APPROVAL U/S. 80G OF THE ACT ON THE REASON THAT THE FORM 10A IS NOT SUBMITTE D IN THE FORMAT AS PRESCRIBED IN THE RULES AND APPLICATION U/S. 80G HAS BEEN REJECTED BE CAUSE THE INSTITUTION IS NOT REGISTERED U/S. 12AA OF THE ACT. WE NOTE THAT THE FORM 10A WAS FILED BY THE ASSESSEE TRUST ALONG WITH THE COPY OF PAN OF THE TRUST. MERE LY BECAUSE THE ASSESSEE TRUST HAS OMITTED TO MENTION THE PERMANENT ACCOUNT NO. OF THE TRUST IN COLUMN NO. 2 OF FORM 10A, THE LD. CIT(E) CONCLUDED THAT APPLICATION IS V OID AB INITIO WITHOUT GIVING AN OPPORTUNITY TO THE ASSESSEE TO RECTIFY THE MISTAKE IS FRAGILE FOR VIOLATION OF NATURAL JUSTICE. WE NOTE THAT WHEN AN ACTION WHICH HAS GOT CIVIL CONSEQUENCES IS TAKEN OR ANY ACTION ADVERSELY AFFECTING THE RIGHTS OF THE ASSESS EE IS TAKEN AN OPPORTUNITY OF HEARING HAS TO BE GIVEN TO THE ASSESSEE. HERE, IN THIS CAS E, MERELY BECAUSE THE ASSESSEE HAS NOT ENTERED THE PAN DETAILS IN COLUMN NO. 2 OF FORM 10A , THE APPLICATION HAS BEEN DISMISSED, WHICH ACTION OF THE LD. CIT(E) SMACKS OF ARBITRARINESS AND THERE IS NAKED VIOLATION OF NATURAL JUSTICE. THEREFORE, WE ARE IN CLINED TO SET ASIDE THE ORDER OF LD. CIT(E) AND REMIT THE APPLICATION BACK TO THE FILE O F LD. CIT(E) TO GIVE AN OPPORTUNITY TO THE ASSESSEE TO RECTIFY THE MISTAKE, IF ANY, AND DIRECT LD. CIT(E) TO PASS ORDERS ON ITS APPLICATIONS U/S. 12A AS WELL AS 80G OF THE ACT ON MERITS AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE TRUST. 5. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES.. ORDER IS PRONOUNCED IN THE OPEN COURT ON 01.06.2017 SD/- SD/- (J. SUDHAKAR REDDY) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 ST JUNE, 2017 JD.(SR.P.S.) 4 ITA NOS.2326 & 2327/KOL/2016 BAJRANG SEVA SADAN. AYS 2016-17 COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT BAJRANG SEVA SADAN, 291/A, UPEN BANERJE E ROAD, KOLKATA- 700 060 2 RESPONDENT CIT(EXEMPTION), KOLKATA. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KO LKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .