M/s. Mangalore Ladies Circle Trust, Mangalore V. Commissioner Of Income Tax (Exemptions), Bangalore

ITA 2471/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0123 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-06-2020
• Assessment Year: 2019-2020
• Appeal Filed On: 03-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TSHERING ONGDU CIT BENGALURU
• Keywords: Opportunity of being heard; Set aside
• Section: 80G; 12AA; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER 1. ITA NOS.2470/BANG/2019 ASSESSMENT YEAR : N/A 2. ITA NOS. 2471/BANG/2019 ASSESSMENT YEAR : 2019-20 M/S. MANGALORE LADIES CIRCLE TRUST, #1-11-1152 ARYA NIVAS, CHILIMBI ASHOKNAGAR, MANGALORE, DAKSHINA KANNADA 575 006. PAN : AA FTM 5883 J VS. THE COMMISSIONER OF INCOME TAX (EXEMPTION), 6 TH FLOOR, UNITY BUILDING ANNEXE, P KALINGA RAO ROAD, BENGALURU 560 27 . APPELLANT RESPONDENT ASSESSEE BY : SHRI. RAVISHANKAR, ADVOCATE REVENUE BY : SHRI. TSHERING ONGDU, ADDL. CIT (DR)(ITAT), BENGALURU DATE OF HEARING : 22 .06.2020 DATE OF PRONOUNCEMENT : 26 .0 6 .2020 O R D E R PER A. K. GARODIA, AM: BOTH THESE APPEALS ARE FILED BY THE ASSESSEE WHICH ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF LEARNED CIT(E), BENGALURU IN RESPECT OF ASSESSEES REQUEST FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT), AND ASSESSEES REQUEST FOR RECOGNITION UNDER SECTION 80G OF THE ACT. BOTH THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 3. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: A. ITA NO. 2470/BANG/2019:- ITA NOS.2470, 2471/BANG/2019 PAGE 2 OF 5 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (EXEMPTIONS), BENGALURU PASSED UNDER SECTION 12AA(1)(B)(II) OF THE ACT IS OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES AND THE FACTS AND CIRCUMSTANCES IN THE APPELLANT'S CASE. 2. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU ERRED IN REJECTING THE APPLICATION OF THE APPELLANT WITHOUT AFFORDING ADEQUATE OPPORTUNITY ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU OUGHT TO HAVE CALLED FOR DETAILS AND GRANTED REQUISITE TIME TO SUBMIT THE SAME TO THE APPELLANT ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU IS BAD IN LAW ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, DELETE OR SUBSTITUTE ANY OF THE GROUNDS URGED ABOVE. 6. IN THE VIEW OF THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF THE HEARING OF THE APPEAL, THE APPELLANT PRAYS THAT THE APPEAL MAY BE ALLOWED IN THE INTEREST OF JUSTICE AND EQUITY. B. ITA NO. 2471/BANG/2019:- 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (EXEMPTIONS), BENGALURU PASSED UNDER SECTION 80G(VI) OF THE ACT IS OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES AND THE FACTS AND CIRCUMSTANCES IN THE APPELLANT'S CASE. ITA NOS.2470, 2471/BANG/2019 PAGE 3 OF 5 2. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU ERRED IN REJECTING THE APPLICATION OF THE APPELLANT WITHOUT AFFORDING ADEQUATE OPPORTUNITY ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU OUGHT TO HAVE CALLED FOR DETAILS AND GRANTED REQUISITE TIME TO SUBMIT THE SAME TO THE APPELLANT ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU IS BAD IN LAW ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, DELETE OR SUBSTITUTE ANY OF THE GROUNDS URGED ABOVE. 6. IN THE VIEW OF THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF THE HEARING OF THE APPEAL, THE APPELLANT PRAYS THAT THE APPEAL MAY BE ALLOWED IN THE INTEREST OF JUSTICE AND EQUITY. 3. IT WAS SUBMITTED BY LEARNED AR OF THE ASSESSEE THAT THE ASSESSEE MADE A REQUEST FOR REGISTRATION UNDER SECTION 12AA OF THE ACT ON 21.05.2019 BUT THE FIRST NOTICE WAS ISSUED BY LEARNED CIT(E) ONLY ON 29.10.2019 FOR COMPLIANCE ON 08.11.2019. HE SUBMITTED THAT THIS IS TRUE THAT BECAUSE OF VARIOUS REASONS, COMPLIANCE COULD NOT BE MADE BY THE ASSESSEE BEFORE CIT (E) ON THIS DATE AND THE ORDER WAS PASSED BY LEARNED CIT(E) ON 28.11.2019. HE SUBMITTED THAT IT IS TRUE THAT THE ASSESSEE COULD NOT MAKE COMPLIANCE IN REPLY TO THE LETTER ISSUED BY LEARNED CIT(E) BUT IT SHOULD BE ACCEPTED THAT ISSUING ONLY ONE NOTICE OF HEARING THAT TOO AFTER MORE THAN 5 MONTHS CANNOT BE CONSIDERED AS GRANT OF SUFFICIENT OPPORTUNITY PARTICULARLY WHEN AS PER SUB-SECTION 2 OF SECTION 12AA OF THE ACT, ORDER WAS TO BE PASSED BY LEARNED CIT(E) WITHIN 6 MONTHS FROM THE END OF THE MONTH IN WHICH THE APPLICATION WAS FILED BY THE ASSESSEE AND SINCE IN THE PRESENT CASE, APPLICATION WAS FILED ON 21.05.2019, THE LAST DATE OF PASSING THE ORDER BY LEARNED CIT(E) UNDER SECTION 12AA OF THE ACT WAS 30.11.2019 AND FIRST NOTICE OF HEARING WAS ISSUED BY LEARNED CIT(E) ON ITA NOS.2470, 2471/BANG/2019 PAGE 4 OF 5 29.10.2019 FIXING THE DATE OF HEARING ON 08.11.2019 AND THE ORDER WAS PASSED BY LEARNED CIT(E) ON 28.11.2019. HE SUBMITTED THAT SINCE SUFFICIENT OPPORTUNITY OF HEARING WAS NOT PROVIDED BY LEARNED CIT(E), THE MATTER SHOULD BE RESTORED BACK TO HIS FILE FOR A FRESH DECISION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. REGARDING THE ASSESSEES REQUEST FOR RECOGNITION UNDER SECTION 80G OF THE ACT ALSO, HIS SUBMISSION WAS SIMILAR. HE POINTED OUT THAT THIS REQUEST WAS ALSO MADE BY THE ASSESSEE ON THE SAME DATE I.E., ON 21.05.2019 AND FIRST LETTER WAS ISSUED BY LEARNED CIT(E) ON 05.11.2019 FIXING THE DATE OF HEARING ON 08.11.2019 AND THE ORDER UNDER SECTION 80G OF THE ACT WAS ALSO PASSED BY LEARNED CIT(E) ON 28.11.2019 AND THEREFORE, BOTH THE MATTERS SHOULD BE RESTORED BACK TO THE FILE OF CIT(E) FOR A FRESH DECISION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF CIT(E) AND HE SUBMITTED THAT SINCE NOTICE WAS ISSUED BY CIT (E) AND NO COMPLIANCE WAS MADE BY THE ASSESSEE AND THEREFORE, THE ORDER OF LEARNED CIT(E) SHOULD BE CONFIRMED. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT BOTH THE REQUESTS FOR REGISTRATION UNDER SECTION 12AA AND RECOGNITION UNDER SECTION 80G OF THE ACT WERE FILED BY THE ASSESSEE ON 21.05.2019 AND THE NOTICE IN RESPECT OF ASSESSEES REQUEST FOR REGISTRATION UNDER SECTION 12AA OF THE ACT WAS ISSUED BY LEARNED CIT(E) ON 29.10.2019 AND THE NOTICE IN RESPECT OF PROCEEDINGS UNDER SECTION 80G OF THE ACT WAS ISSUED BY LEARNED CIT(E) ON 05.11.2019 AND DATE OF HEARING IN BOTH THE CASES WERE FIXED ON 08.11.2019 AND BOTH THE ORDERS WERE PASSED BY LEARNED CIT(E) ON 28.11.2019. THIS IS ALSO TRUE THAT AS PER SUB-SECTION 2 OF SECTION 12AA OF THE ACT, LEARNED CIT(E) WAS REQUIRED TO PASS THE ORDER UNDER SECTION 12AA OF THE ACT WITHIN 6 MONTHS FROM THE END OF MONTH IN WHICH THE REQUEST WAS MADE BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND THEREFORE, THE LAST DATE FOR ITA NOS.2470, 2471/BANG/2019 PAGE 5 OF 5 PASSING THE ORDER UNDER SECTION 12AA OF THE ACT WAS 30.11.2019 AND LEARNED CIT(E) HAS TAKEN MORE THAN 5 MONTH TO ISSUE THE ONLY NOTICE DATED 29.10.2019. UNDER THESE FACTS, WE FIND FORCE IN THE SUBMISSIONS OF LEARNED AR OF THE ASSESSEE THAT REASONABLE OPPORTUNITY OF BEING HEARD WAS NOT PROVIDED BY LEARNED CIT(E) AND THEREFORE, WE SET ASIDE BOTH THE ORDERS OF LEARNED CIT(E) AND RESTORE THE MATTER BACK TO HIS FILE FOR A FRESH DECISION, AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN VIEW OF THIS DECISION, WE MAKE NO COMMON ON MERIT. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (PAVAN KUMAR GADALE) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED: 26 TH JUNE, 2020. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.