Redeem Charitable Trust, Eluru V. The Income Tax Officer(Exemptions), Rajahmundry

ITA 250/VIZ/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6595 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Appeal Filed On: 17-12-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SONAWAL
• Keywords: Charitable institution; Set aside
• Section: 12A; 12AA; 250; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI N.K. CHOUDHRY, HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON'BLE ACCOUNTANT MEMBER I.T.A. NO. 250 /VIZ/2020 REDEEM CHARITABLE TRUST, D.NO. 14 - 1 - 10, PENSION LINES , ELURU, W . G . DIST. V S. ITO (EXEMPTIONS) RAJAHMUNDRY. PAN NO. AADTR 2464 A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.V.N. HARI, ADVOCATE. DEPARTMENT BY : SHRI D.K. SONAWAL, CIT DR DATE OF HEARING : 05 / 04 /2021 . DATE OF PRONOUNCEMENT : 08 / 0 4 /2021 . O R D E R PER N.K. CHOUDHRY , JUDICIAL MEMBER THIS APPEAL HAS BEEN PREFERRED BY THE APPELLANT/TRUST AGAINST THE ORDER DATED 26 /08 /20 20 IMPUGNED HEREIN PASSED BY THE LD. COMMISSIONER OF INCOME TAX ( EXEMPTIONS ) [FOR SHORT , LD. COMMISSIONER] , HYDERABAD U/SEC. 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT'). 2. IN THIS CASE, APPLICATION FILED BY THE APPELLANT/TRUST ON DATED 25/11/2019 FOR REGISTRATION U/SEC. 12A OF THE ACT WAS TAKEN INTO CONSIDERATION BY LD. COMMISSIONER WHILE ISSUING THE NOTICES ON 11 /0 2 /2020 , 04 /0 3 /2020 AND 18/05/2020 BY WHICH THE APPELLANT/TRUST 2 ITA NO. 250 / VIZ /2020 ( REDEEM CHARITABLE TRUST ) WAS ASKED TO APPEAR AND PRODUCE ITS ORIGINAL MEMORANDUM OF ASSOCIATION (MOA)/TRUST DEED FOR VERIFICATION AND TO FURNISH A DETAILED REPLY ON SPECIFIC POINTS AND THE APPELLANT WAS ALSO INFORMED THAT IT MAY SUBMIT THE INFORMATION BY POST /EMAIL ON OR BEFORE 11.06.2020. THOUGH THE APPELLANT IN RESPONSE TO THE SAID NOTICE FILED CERTAIN DOCUMENTARY EVIDENCE IN ITBA ON 08/06/2020 , HOWEVER COULD NOT APPEAR AND FAILED TO PRODUCE ITS ORIGINAL MEMORANDUM OF ASSO CIATION (MOA)/TRUST DEED FOR VERIFICATION AND A DETAILED REPLY ON SPECIFIC POINTS AND ALSO FAILED TO SATISFY THE LD. COMMISSIONER FOR GRANT OF REGISTRATION APPLIED AND IN COMPELLING CIRCUMSTANCES, THE LD COMMISSIONER REJECTED THE APPLICATION FOR REGISTRATI ON BY OBSERVING THAT NO CHARITABLE ACTIVITIES CARRIED OUT BY THE APPELLANT , THUS, THE TRUST IS NOT ELIGIBLE FOR REGISTRATION U/S. 12A OF THE ACT. 3. CONSIDERING THE PECULIAR FACTS AND CIRCUMSTANCES THAT THE LD. COMMISSIONER IN THE ABSENCE OF PROPER PLEADINGS, INFORMATION, DOCUMENTS AND SATISFACTION THOUGH HELD THAT THERE ARE NO CHARITABLE ACTIVITIES CARRIED OUT BY THE APPELLANT BUT FAILED TO DECIDE THE APPLICATION FOR REGISTRATION U/S 12 OF THE ACT IN ITS RIGHT PERSPECTIVE , WHER EAS THE APPELLANT/TRUST HAD REASONABLE AND BONAFIDE CAUSE FOR NOT JOINING THE PROCEEDINGS BEFORE THE LD. COMMISSIONER DUE TO COMPLETE LOCK DOWN IN THE MONTH OF MAY AND JUNE, 2020 BECAUSE AT THAT PARTICULAR POINT OF TIME, THE ENTIRE NATION WAS ON HOLD AND T HEREFORE THE APPELLANT FAILED TO AVAIL THE OPPORTUNI TIES TO SATISFY THE LD. COMMISSIONER QUA OBJECTS AND CHARITABLE ACTIVITIES OF THE TRUST AND FURTHER FAILED TO PLEAD ITS CASE IN PROPER MANNER, HENCE WE ARE INCLINED TO SET ASIDE THE IMPUGNED ORDER AND TO REMAND BACK THE CASE TO THE FILE OF LD. COMMISSIONER FOR DECISION AFRESH ON MERITS WITHIN 0 6 MONTHS OF THE ORDER, WHILE AFFORDING REASONABLE OPPORTUNIT Y (S) OF BEING HEARD TO THE APPELLANT/TRUST. HENCE ORDERED ACCORDINGLY. 3 ITA NO. 250 / VIZ /2020 ( REDEEM CHARITABLE TRUST ) 4 . IN THE RESULT, APPEAL FILED BY THE APPELLANT/TRUST STANDS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 8 T H DAY OF APRIL , 2021 . S D / - S D / - (D.S. SUNDER SINGH) ( N.K. CHOUDHRY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 8 T H APRIL , 20 2 1 . VR/ - COPY TO: 1. THE APPELLANT - REDEEM CHARITABLE TRUST, D.NO. 14 - 1 - 10, PENSION LINES, ELURU, W.G. DIST. 2. THE REVENUE ITO (EXEMPTIONS), RAJAHMUNDRY. 3. THE CIT(EXEMPTIONS) , HYDERABAD. 4. THE D.R . , VISAKHAPATNAM 5. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.