Surat Sewa sansthan, Lucknow V. C.I.T.-I, Lucknow

ITA 244/LKW/2011

• Counselvise Citation: 24423714 RSA 2011
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 05-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K B AJAJ
• Keywords: Opportunity of being heard
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, B - BENCH, LUCKNOW. BEFORE SHRI H.L.KARWA, HON'BLE VICE PRESIDENT AND SHRI N.K.SAINI, ACCOUNTANT MEMBER I.T.A.NO.244(LKW.)/2011 A.Y. 2010-11 SURAT SEWA SANSTHAN, VS. THE CIT-I, D-81, VIBHUTI KHAND, LUCKNOW. GOMTI NAGAR, LUCKNOW-226001. PAN AAGTS5998F (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI P.K.BAJAJ, SR.D.R. DATE OF HEARING : 17.8.2011 DATE OF PRONOUNCEMENT : 17.8.2011 O R D E R PER H.L.KARWA, VICE PRESIDENT THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD.CIT-I, LUCKNOW DATED 17.3.2011, WHEREBY THE LD.CIT-I, LUCKNOW HAS REFUSED TO GRANT APPROVAL/RENEWAL OF RECOGNITION UNDER SECTION 80G(5) OF THE INCOME-TAX ACT, 1961 ( IN SHORT THE ACT) TO THE ASSESSEE. 2. IN THIS APPEAL, THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS : 1. THAT THE LD COMMISSIONER IS NOT JUSTIFIED IN NOT ALLOWING OPPORTUNITY BEFORE REFUSING THE RENEWAL OF RECOGNITION U/S 80 (G) TO THE APPELLANT, AT THE TIME OF HEARING THE APPELLANT WAS SERIOUSLY ILL. 2 2. THAT THE LD COMMISSIONER HAS TAKEN VIEWS THAT THE TRUST ACTIVITIES ARE NOT CHARITABLE IN NATURE HOWEVER ON THE SAME GROUND THE APPELLANT WAS GRANTED APPROVAL U/S 80 G OF THE INCOME TAX ACT EARLIER. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CHARITABLE SOCIETY AND IS REGISTERED WITH THE REGISTRAR OF SOCIETIES. THE SOCIETY HAS BEEN GRANTED REGISTRATION UNDER SECTION 12A OF THE ACT. THE ASSESSEE FILED AN APPLICATION UNDER SECTION 80G OF THE ACT TO RENEW THE RECOGNITION UNDER SECTION 80G OF THE ACT FOR FURTHER PERIOD. THE LD.CIT REJECTED THE APPLICATION FOR APPROVAL UNDER SECTION 80G OF THE ACT OBSERVING AS UNDER : 2. A LETTER DATED 07.03.2011 GIVING AN OPPORTUNITY TO THE SOCIETY WAS ISSUED BY SPEED POST AT THE GIVEN ADDRESS IN APPLICATION, FIXING THE DATE OF HEARING ON 14.03.2011. ON THE NONE ATTENDED NOR WAS ANY WRITTEN SUBMISSION FILED. IN ABSENCE OF ANY DETAILS OR EVIDENCE, CHARITABLE ACTIVITIES CARRIED OUT BY THE SOCIETY, IF ANY, COULD NOT BE VERIFIED. 3. IN VIEW OF THE ABOVE, THERE IS NO MATERIAL ON RECORD TO ESTABLISH EITHER THE GENUINENESS OR THE CHARITABLE NATURE OF THE ACTIVITIES OF THE TRUST. THEREFORE, I DO NOT FIND THE CASE TO BE FIT FOR GRANTING APPROVAL U/S 80G(5) OF THE IT ACT, 1961. ACCORDINGLY, THE APPLICATION FOR APPROVAL U/S 80G OF THE ACT IS HEREBY REJECTED. 4. WE HAVE HEARD THE LD.D.R. AT LENGTH AND HAVE ALSO PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE STATEMENT OF FACTS, IT IS STATED THAT DUE TO ILLNESS OF SHRI SANJEEV KUMAR SINGH, VICE-PRESIDENT OF THE SOCIETY, NOBODY ATTENDED THE CASE BEFORE THE COMMISSIONER AND ON THIS GROUND ALONE, THE LD.CIT HAS REFUSED TO GRANT APPROVAL UNDER SECTION 80G OF THE ACT. IN SUPPORT OF THIS CONTENTION, THE ASSESSEE-SOCIETY HAS SUBMITTED A CERTIFICATE AS REGARDS THE ILLNESS OF SHRI SANJEEV KUMAR SINGH FROM DR. VIKAS SRIVASTAVA OF ZAINISS HOSPITAL, VIVEK KHAND-II, GOMTI NAGAR, LUCKNOW. IN THE 3 CERTIFICATE, DR.VIKAS SRIVASTAVA HAS CERTIFIED THAT FROM 14.3.2011 TO 20.3.2011, SHRI SANJEEV KUMAR SINGH WAS UNDER HIS TREATMENT. IT SEEMS THAT DUE TO ABOVE REASON, NOBODY APPEARED ON BEHALF OF THE ASSESEE BEFORE THE LD.CIT ON 14.3.2011. IN OUR CONSIDERED VIEW, THE LD.CIT HAS NOT AFFORDED DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE REJECTING THE APPLICATION FOR APPROVAL UNDER SECTION 80G OF THE ACT. THUS, IN THE INTEREST OF JUSTICE AND FAIRPLAY, WE THINK IT PROPER TO SET ASIDE THE ORDER OF THE LD.CIT IN TOTO AND REMAND THE MATTER TO THE LD.CIT WITH A DIRECTION TO PASS A FRESH ORDER IN ACCORDANCE WITH LAW, AFTER AFFORDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AT THE SAME TIME, WE ALSO DIRECT THE ASSESSEE TO CO-OPERATE AND ATTEND THE HEARING, WHICH MAY BE FIXED BY THE LD.CIT. NEEDLESS TO SAY, THE LD.CIT WILL DECIDE THE MATTER PREFERABLY WITHIN TWO MONTHS FROM THE DATE OF RECEIPT OF THE ORDER. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 17.8.2011. SD. SD. (N.K.SAINI) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT AUGUST 17TH , 2011. COPY TO THE : 1. APPELLANT 2. RESPONDENT 3. CIT(A) (4) CIT 5.DR. A.R.,ITAT, LUCKNOW. SRIVASTAVA.