Sri Narayanaguru Vidyanidhi Trust, Udupi V. Commissioner Of Income Tax (Exemptions), Bengaluru

ITA 2437/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0779 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-06-2020
• Assessment Year: 2019-2020
• Appeal Filed On: 28-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Charitable institution; Set aside
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES B BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 2437/BANG/2019 SRI NARAYANAGURU VIDYANIDHI TRUST, C/O BILLAVARA SEVA SANGHA BANNANJE, UDUPI - 576 101 .APPELLANT VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS) , BANGALORE. RESPONDENT. ASSESSEE BY: NONE. REVENUE BY: SHRI MUZAFFAR HUSSAIN, CIT (D.R) DATE OF HEARING : 03.06.20 20. DATE OF PRONOUNCEMENT : 10 .06 .20 20. O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGA INST THE ORDER OF C OMMISSIONER OF INCOME TAX ( EXEMPTION S) , BANGALORE REJECTING THE RECOGNITION SOUGHT UNDER SECTION 80G (5) (VI) OF THE INCOME TAX ACT, 1961 (THE ACT) . 2. THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS OF APPEAL : 2 ITA NO. 2437/BANG/2019 3. NONE APPEARED ON BEHALF OF THE ASSESSEE NOR WAS ADJOURNMENT PETITION FILED. THEREFORE CONSIDERING THE MATERIAL AND SUB MISSIONS OF THE LD. DR, THE APPEAL IS HEARD. . 4. THE BRIEF FACTS OF THE CASE ARE, THE ASSESSEE IS A REGISTERED CHARITABLE TRUST . THE ASSE SSEE H AS MADE AN APPLICATION SEEKING R ECOGNITION UNDER SECTION 80G OF THE ACT ON 7.3.2019. THE CIT (EXEMPTIONS) ON VERIFICAT ION OF THE DOCUMENTS, OBSERVED THAT THERE ARE NO NOTICEABLE CHARITABLE ACTIVITIES AS ON DATE FROM THE DATE OF FORMATION OF THE TRUST . TH EREFORE THE GENUINENESS OF THE ACTIVITIES OF TRUST CANNOT BE EXAMINED AND HAS REJECTED THE R ECOGNITION UNDER SECTION 80G(5)(VI) OF 3 ITA NO. 2437/BANG/2019 THE ACT ON 27.09.2019. AGGRIEVED BY THE REJECTION ORDER OF CIT (EXEMPTIONS), THE ASSESSEE HAS FILED AN APPEAL WITH THE TRI BUNAL. 5. T HE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER S OF CIT (EXEMPTIONS). WE ON PERUSAL OF THE MATERIAL PAPERS FILED BY THE ASSESSEE TRUST FIND THAT THE REGISTRATION UNDER SECTION 12AA OF THE ACT WAS GRANTED TO ASSESSEE ON 29.09.2015, A ND THE ASSESSEE HAS FURNISHED THE DETAILS AND CLARIFICATIONS FOR PROCESS ING OF APPLICATION FOR RECOGNITION U/SEC80G OF THE ACT ON 5 - 9 - 2019 WITH CIT(EXEMPTIONS) . 6. WE HEARD THE SUBMISSIONS OF THE LD. DR AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, THE CIT (EXEMPTIONS) REJECTED THE RECOGNITION UNDER SECTION 80G OF THE ACT OBSERVING THA T THE ASSESSEE HAS NOT CARRIED OUT NOTICEABLE CHARITABLE ACTIVITIES AND T HE GENUINENESS OF ACTIVITIES COULD NOT BE EXAMINED. WHEREAS, THE ASSESS EE WAS GRANTED R EGISTRAT ION UNDER SECTION 12AA OF THE ACT ON 29.09.2015. . WE FIND THE CO - ORDINATE BENCH OF TRIBUNAL IN ITA NO.2560/BANG/20 18 DATED 22/03/2019 OF M/S.KUNCHAM MOHAN RAJ & MANJULA CHARITABLE TRUST VS CIT(E) HAS DEALT O N RECOGNITION U/SEC 80G OF THE ACT, W H ERE THE ASSESSEE TRUST WAS ALREADY GRANTED REGISTRATION U/SEC12AAOF THE ACT. FURTHER THE CIT (EXEMPTIONS) HAS NOT PROCESSED THE APPLICATION, APPLYING THE PROVISIONS OF SECTION 80G(5)(I) TO (VI) OF THE ACT AND REJECTED THE RECOGNITION. WE ARE OF THE OPINION THAT, A T THE STAGE OF 4 ITA NO. 2437/BANG/2019 GRANTING OF RECOGNITION UNDER SEC80G OF THE ACT, TH E EXTENT AND NATURE OF ACTIVITIES ARE NOT REQUIRED TO BE EX AMINED AND SUPPORT OUR VIEW RELYING ON THE DECISION OF HONORABLE HIGH COURT OF GUJARAT CIT VS ARVIND BHAI MANIAR CHARITABLE FOU NDATION ( 2015) 231 TAXMAN 908(GUJ) . THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES, THE ORDER OF THE CIT (EXEMPTIONS) IS SET ASIDE AND RESTORE THE DISPUTED ISSUES TO THE FILE OF CIT (E) WITH THE DIRECTION TO CONSIDER AF RESH AND PASS A SPEAKING ORDER. FU RTHER THE ASSESSEE SHOULD BE PROVIDED WITH ADEQUATE OPPORTUNITY OF HEARING .THE ASSESSEE SHOULD ALSO CO - OPERATE IN SUBMITTING THE INFORMATION AND DETAILS FOR EARLY DISPOSAL OF THE APPLICATION FILED FOR RECOGNITION U/S 80G OF THE ACT . ACCORDINGLY , WE ALLOW THE APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES . 7 . IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/ - SD/ - ( B.R. B ASKARAN ) (P AVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10. 06. 20 20 . *REDDY GP 5 ITA NO. 2437/BANG/2019 COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL .