Sree Vadapalli Venkanna Anna Prasadam Trust, , Atreyapuram Mandal. V. The Commissioner of Income Tax(Exemptions)., Hyderabad

ITA 251/VIZ/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6597 (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: 2019-2020
• Appeal Filed On: 17-12-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K SONAWAL
• Keywords: Set aside
• Section: 12A; 12AA; 251; 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. 251/VIZ/2020 SREE VADAPALLI VENKANNA ANNA PRASADAM TRUST, 2 - 89, VADAPALLI TEMPLE STREET, ATREYAPURAM MANDAL, EAST GODAVARI DISTRICT. V S. CIT (EXEMPTIONS) , HYDERABAD. PAN NO. AAVTS 6183 P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C.SUBRAHMANYAM, FCA DEPARTMENT BY : SHRI D.K. SONAWAL , CIT DR DATE OF HEARING : 30 / 03 /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 - T RUST AGAINST THE ORDER DATED 11 / 09 /20 20 IMPUGNED HEREIN PASSED BY THE LD. COMMISSIONER OF INCOME TAX ( EXEMPTIONS ) [FOR SHORT , LD. COMMISSIONER] , VISAKHAPATNAM U/SEC. 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT'). 2 ITA NO. 251 /VIZ/20 20 SREE VADAPALLI VENKANNA ANNA PRASADAM TRUST 2. IN THIS CASE, THE APPLICATION DATED 20/02/2020 FILED BY THE APPELLANT - T RUST FOR REGISTRATION U/SEC. 12A OF THE ACT WAS TAKEN INTO CONSIDERATION BY THE LD. COMMISSIONER WHILE ISSUING THE NOTICE DATED 11.03 2020 TO THE APPLICANT, TO APPEAR AND PRODUCE ITS ORIGINAL MEMORANDUM OF ASSOCIATION (MOA)/TRUST DEED FOR VERIFICATION AND TO FURNISH A DETAILED REPLY ON SPECIFIC POINTS ON 13.04.2020 WHICH REMAINED UN - COMPLIED. THEREAFTER CONSIDERING LOCKDOWN, ONE MORE NOTICE WAS ISSUED TO THE APPELLANT VIDE LETTER DATED 21.05.20 20 POSTING THE CASE FOR HEARING ON 17.06.2020 WHICH ALSO REMAINED UN - COMPLIED . FINALLY T HE APPELLANT WAS INFORMED BY THE LD. COMMISSIONER THAT THE INFORMATION MAY BE SUBMITTED BY POST / EMAIL ON OR BEFORE 17.06.2020, HOWEVER, THE APPELLANT - TRUST FAILED TO APPEAR AND ALSO FAILED TO FILE ANY DOCUMENTARY EVIDENCE INTER - ALIA ORIGINAL MEMORANDUM OF ASSOCIATION (MOA)/TRUST DEED FOR VERIFICATION AND A DETAILED REPLY ON SPECIFIC POINTS RAISED BY THE LD. COMMISSIONER THEREFORE, IN COMPELLING CIRCUMSTANCES IN THE AB SENCE OF DOCUMENTS AND ASSISTANCE OF THE APPELLANT , THE LD. COMMISSIONER WAS CONSTRAINED TO REJECT THE APPLICATION FOR REGISTRATION . 3. WE MAY OBSERVE THAT LD. COMMISSIONER ALSO OBSERVED THAT THE OBJECTS OF THE APPELLANT CONTAIN BOTH RELIGIOUS AND CHARITA BLE OBJECTS. THIS GROUND OF REJECTION IS NOT SUSTAINABLE AS PER RECENT 3 ITA NO. 251 /VIZ/20 20 SREE VADAPALLI VENKANNA ANNA PRASADAM TRUST ORDER OF THE TRIBUNAL IN THE CASE OF DHATRI FOUNDATION VS. CIT(EXEMPTION) { ITA NO.252/VIZ/2020, DECIDED ON 24/03/2021 } . 4. COMING TO THE OTHER ASPECTS OF CASE, T HE LD. COMMISSIONER FAILED TO CONSIDER THE APPLICATION FOR REGISTRATION U/S 12 OF THE ACT IN ITS RIGHT PERSPECTIVE DUE TO NON - APPEARANCE AND NON - SUBMISSION OF DOCUMENTS INTER - ALIA ORIGINAL MEMORANDUM OF ASSOCIATION (MOA)/TRUST DEED FOR VERIFICATION AND A DETAILED REPLY ON SPECIFIC POINTS RAISED BY THE LD. COMMISSIONER , W HEREAS THE APPELLANT/TRUST HAD REASONABLE AND BONAFIDE CAUSE FOR NOT JOINING THE PROCEEDINGS AND NON - FILLING OF RELEVANT DOCUMENTS AND INFORMATION BEFORE THE LD. COMMISSIONER BECAUSE THE APPLICATION OF THE A PPELLANT/TRUST WAS CONSIDERED DURING THE LOCKDOWN PERIOD IN THE MONTH OF MAY AND JUNE, 2020 AND A T THAT PARTICULAR POINT OF TIME, THE ENTIRE NATION WAS ON HOLD AND THEREFORE THE APPELLANT TRUST WAS UNABLE TO AVAIL THE OPPORTUNI TIES TO SATISFY THE LD. COMM ISSIONER QUA TRUST S OBJECTS AND ITS CHARITABLE ACTIVITIES AND TO PLEAD ITS CASE IN PROPER MANNER, HENCE C ONSIDERING THE PECULIAR FACTS AND CIRCUMSTANCES, 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. 4 ITA NO. 251 /VIZ/20 20 SREE VADAPALLI VENKANNA ANNA PRASADAM TRUST 5 . IN THE RESULT, APPEAL FILED BY THE APPELLANT/TRUST STANDS ALLOWED FO R 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 - SREE VADAPALLI VENKANNA ANNA PRASADAM TRUST, 2 - 89, VADAPALLI TEMPLE STREET, ATREYAPURAM MANDAL, EAST GODAVARI DISTRICT. 2. THE REVENUE CIT (EXEMPTIONS), HYDERABAD. 3. THE D.R . , VISAKHAPATNAM . 4. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.