M/s Society of Sisters of St Anne, Guntur V. The CIT Vijayawada, Vijayawada

ITA 245/VIZ/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56818 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 18-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TH L PETER
• Assessee Lawyers: C KAMESWARA RAO
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A; 12AA

Judgement Text

ITA NO245/VIZ/2011 SOCIETY OF SISTERS OF STN. ANNE, PHIRANGIPURAM 1 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 245 /VIZAG/ 20 11 ASSESSMENT YEAR : N.A. SOCIETY OF SISTERS OF ST. ANNE PHIRANGIPURAM, GUNTUR VS. CIT VIJAYAWADA (APPELLANT) (RESPONDENT) PAN NO.AAJTS 8678R APPELLANT BY: SHRI C. KAMESWARA RAO, CA RESPONDENT BY: SHRI TH.L. PETER, CIT(DR) DATE OF HEAR I NG: 22. 0 8.2011 DATE OF PRONOUNCEMENT: 05 . 09 .2011 ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT ON VARIOUS GROUNDS WHICH ARE AS UNDER: 1. THE LD. CIT, VIJAYAWADA HAS ERRED BOTH ON FACTS AND IN LAW IN REFUSING REGISTRATION UNDER SEC 12AA OF THE INCOME- TAX ACT, 1961. IT IS SUBMITTED THAT THE ORDERS PASSED BY THE LD. C IT BE QUASHED. 2. THE LD. CIT HAS FAILED TO APPRECIATE THE BYE-LAWS A ND ITS CLAUSES OF THE SOCIETY. THEREFORE, IT IS PRAYED THAT THE N ECESSARY INSTRUCTIONS BE GIVEN TO THE LD. CIT, FOR GRANTING REGISTRATION TO THE APPELLANT SOCIETY BY QUASHING THE ORDER PASSED. 3. THE ALLEGATIONS/DEFICIENCIES POINTED OUT BY LD. CIT FOR REJECTING THE REGISTRATION ARE: (I) NO CLAUSE TO THE EFFECT THAT THE TITLE IS IRREVOCAB LE. (II) NO SPECIFIC CLAUSE TO THE EFFECT THAT NO ACTIVITIES SHALL BE CARRIED OUTSIDE INDIA, AND (III) NO PAN. THESE ARE AGAINST THE FACTS AND CIRCUMSTANCES OF TH E CASE. 4. THE LD. CIT HAS REJECTED THE REGISTRATION WITHOUT G IVING ANY REASONABLE OPPORTUNITY TO THE APPELLANT, WHICH IS A GAINST THE PRINCIPLES OF NATURAL JUSTICES. 5. FOR THESE AND ANY OTHER REASONS/GROUNDS MAY BE RAIS ED DURING THE COURSE OF HEARING, THE APPELLANT PLEADS FOR RELIEF. 6. THE APPELLANT CRAVES FOR ADDING, DELETING AND/OR MO DIFYING ANY OF THE ABOVE GROUNDS OF THE APPEAL. ITA NO245/VIZ/2011 SOCIETY OF SISTERS OF STN. ANNE, PHIRANGIPURAM 2 2. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE CIT HAS REJECTED TH E REGISTRATION SOUGHT U/S 12A OF THE INCOME-TAX ACT (HEREINAFTER CALLED AS AN `ACT) WITHOUT AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEES. TH E LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT THE APPLICATION FOR REGISTRATION WAS REJECTED MAINLY ON 3 GROUNDS, WHEREAS ASSESSEE WAS NOT REQUI RED TO SUBMIT THE INFORMATIONS WITH RESPECT TO ALL THE 3 ISSUES AT TH E TIME OF REGISTRATION U/S 12A OF THE ACT. HOWEVER, IF THE CIT INTENDED TO VE RIFY CERTAIN FACTS, HE SHOULD HAVE ASKED THE ASSESSEE TO FURNISH THE RELEV ANT INFORMATIONS. BUT WITHOUT PROVIDING ANY OPPORTUNITY OF BEING HEARD TO THE ASSESSEES, THE CIT HAS REJECTED THE APPLICATION FOR REGISTRATION U/S 1 2A OF THE ACT. 3. THE LD. D.R. ON THE OTHER HAND HAS SUBMITTED THA T THE ASSESSEE HAS NOT FURNISHED THE COMPLETE INFORMATION BEFORE THE C IT AT THE TIME OF SUBMITTING THE APPLICATION FOR REGISTRATION. THERE FORE, THE CIT WAS JUSTIFIED IN REJECTING THE REGISTRATION CLAIMED U/S 12A OF THE A CT. 4. HAVING GONE THROUGH THE ORDER OF THE CIT IN THE LIGHT OF SUBMISSIONS OF THE PARTIES, WE FIND THAT CIT HAS NOTICED CERTAIN S HORTCOMINGS IN THE APPLICATIONS FILED BY THE ASSESSEE FOR GRANT OF REG ISTRATION U/S 12A OF THE ACT. THE SHORTCOMINGS AND NOTINGS NOTED BY THE CIT ARE A S UNDER: 1. THERE IS NO CLAUSE TO THE EFFECT THAT THE TRUST/SOC /INSTITUTION FORMED BY YOU UNDER THE ABOVE TITLE SHALL BE IRREVO CABLE. 2. THERE IS NO SPECIFIC CLAUSE TO THE EFFECT THAT NO A CTIVITIES OF THE TRUST/SOC/ASSOCIATION/INSTITUTION SHALL BE CARRIED OUT ANYWHERE OUTSIDE INDIA. 3. NO PERMANENT ACCOUNT NUMBER. 5. IT IS ALSO EVIDENT FROM THE ORDER OF THE CIT THA T HE DID NOT ASK THE ASSESSEE TO FURNISH THE RELEVANT INFORMATION OF THE ABOVE ISSUES. HE OUTRIGHTLY REJECTED THE APPLICATION FOR REGISTRATIO N U/S 12A OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE HAS RAISED A DISPUTE THAT HE WAS NOT REQUIRED TO FURNISH ALL THESE INFORMATIONS AT THE TIME OF REGIS TRATION U/S 12A BEFORE THE CIT(A). BUT IN ANY CASE WE ARE OF THE VIEW BEFORE REJECTING THE APPLICATION FOR REGISTRATION THE CIT OUGHT TO HAVE AFFORDED ATL EAST ONE OPPORTUNITY TO THE ASSESSEE TO SUBMIT THE DESIRED INFORMATION AND IF H E FAILS TO DO SO, THE ITA NO245/VIZ/2011 SOCIETY OF SISTERS OF STN. ANNE, PHIRANGIPURAM 3 REGISTRATION COULD HAVE BEEN REFUSED. BUT CIT AT T HE FIRST INSTANCE REJECTED THE APPLICATION FOR REGISTRATION. THE ACTION OF TH E CIT DOES NOT APPEAR US TO BE IN ACCORDANCE WITH LAW. WE THEREFORE, SET ASIDE THE ORDER OF CIT AND DIRECT HIM TO RE-EXAMINE THE CLAIM OF REGISTRATION U/S 12A OF THE ASSESSEES AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO TH E ASSESSEES. LET THE ASSESSEE SATISFY THE CIT WITH RELEVANT EVIDENCE WIT H REGARD TO HIS CLAIM OF REGISTRATION U/S 12A OF THE ACT. ACCORDINGLY, THE MATTER IS REMANDED BACK TO THE CIT FOR RE-ADJUDICATION OF THE APPLICATION FOR REGISTRATION U/S 12A OF THE ACT IN ACCORDANCE WITH LAW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 05.09.2011 SD/- SD/- (BR BAS KARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 05 TH SEPTEMBER, 2011 COPY TO 1 C. KAMESWARA RAO, CHARTERED ACCOUNTANT, DR.NO.1 - 90 - 17, LIG 52 SECTOR 5, M.V.P. COLONY, VISAKHAPATNAM-530 017. 2 THE CIT, VIJAYAWADA 3 THE CIT (A) , VIJAYAWADA 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM