Karnataka IA & AD Pensioner's Association , Bangalore V. Commissioner of Income Tax (Exemptions) , Bangalore

ITA 2530/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0709 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-06-2020
• Assessment Year: 2018-2019
• Appeal Filed On: 05-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N V MURALIDHARA
• Keywords: Charitable institution; Opportunity of being heard; Set aside
• Section: 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI A.K GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.2530/BANG/2018 ASSESSMENT YEAR : 2018 19 KARNATAKA IA & AD PENSIONERS ASSOCIAITON, NO.212, KAVERI, 7 TH A MAIN, 4 TH CROSS, HAMPINAGAR, BENGALURU-560 104. PAN AABAK 6565 C VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), BENGALURU. ASSESSEE RESPONDENT ASSESSEE BY : SHRI N.V MURALIDHARA, ADVOCATE RESPONDENT BY : MS. NEERA MALHOTRA, CIT DR DATE OF HEARING : 04-06-2020 DATE OF PRONOUNCEMENT : 15-06-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST O RDER DATED 29/06/2018 PASSED BY LD. CIT (E), BANGALORE. 2. LD. A.R. AT THE OUTSET SUBMITTED THAT, ON ONE HA ND LD. CIT (E) NOTES THAT REPLY HAS BEEN SUBMITTED BY TRUST O N 12/03/2018 WHICH WAS EXAMINED, ON THE OTHER HAND LD. CIT(E) R EJECTS APPLICATION UNDER SECTION 12 AA DATED 19/12/2017 FI LED BY ASSESSEE FOR LACK OF DILIGENCE AND FOLLOW UP. 3. HE SUBMITTED THAT AT THE STAGE OF GRANTING REGIS TRATION UNDER SECTION 12 A, GENUINENESS OF OBJECTS ONLY NEE DS TO BE PAGE 2 OF 4 ITA NO.2530/BANG/2018 ` TESTED. LD.AR SUBMITTED THAT IN THE PRESENT CASE, L D. CIT(E) REJECTED THE APPLICATION FOR THE REASON THAT, THE A SSOCIATION DOES NOT QUALIFY TO BE RECOGNISED AS CHARITABLE TRUST AS DEFINED UNDER SECTION 2 (15) OF THE ACT. HE SUBMITTED THAT, OBJEC TS OF THE SOCIETY SHOWED SEVERAL ACTIVITIES WERE CARRIED OUT WHICH WE RE IN THE INTEREST OF GENERAL PUBLIC. HE SUBMITTED THAT OBJEC TS OF THE ASSESSEE HAS NOT BEEN ANALYSED BY LD. CIT (E). 4. LD.CIT DR DID NOT OBJECT FOR ISSUE TO BE SENT BA CK TO LD.CIT(E) FOR REVERIFICATION. 5. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SID ES IN LIGHT OF RECORDS PLACED BEFORE US. 6. WE NOTE THAT LD.CIT(E) ON ONE HAND CONSIDERS THE SUBMISSIONS OF ASSESSEE FOR REJECTING APPLICATION D ATED 29/06/2018 AND ON OTHER HAND, ALSO STATES THAT ASSE SSEE DID NOT PARTICIPATE AND FOLLOW UP WITH PROCEEDINGS DILIGENT LY. 7. WE NOTE THAT LD. CIT(E) DID NOT INDICATE WHAT FU TURE DETAILS WERE REQUIRED TO BE FILED BY ASSESSEE IN SUPPORT OF ITS APPLICATION. THE PREPONDERANCE OF JUDICIAL OPINION OF ALL HONBLE HIGH COURTS INCLUDING THIS TRIBUNAL IS THAT, AT THE TIME OF REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX ACT, WHAT IS NECESSA RY FOR CLAIMING EXEMPTION UNDER SECTIONS 11 AND 12 OF THE ACT, LD.CIT(E) IS ALSO NOT REQUIRED TO LOOK INTO THE ACT IVITIES, WHERE SUCH ACTIVITIES HAVE NOT OR ARE IN THE PROCESS OF I TS INITIATION. WHAT IS NECESSARY TO BE LOOKED INTO IS THE GENUINEN ESS OF SUCH OBJECTS. 8. WE THEREFORE, SET ASIDE THIS ISSUE BACK TO THE F ILE OF LD.CIT(E) FOR CONSIDERING APPLICATION DATED 29/06/2 018 AFRESH AND TO DECIDE THE APPLICATION IN ACCORDANCE WITH LA W. NEEDLESS TO PAGE 3 OF 4 ITA NO.2530/BANG/2018 ` SAY THAT PROPER OPPORTUNITY OF BEING HEARD MAY BE G RANTED TO ASSESSEE AND ASSESSEE IS DIRECTED TO FILE ALL RELEV ANT DETAILS IN SUPPORT OF ITS APPLICATION. ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. IN THE RESULT, APPEAL FILED BY ASSESSEE STANDS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JUNE 2020 . SD/- SD/- (A.K GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15/06/2020 /VMS/ COPY TO: 1. ASSESSEE 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL. BANGALORE PAGE 4 OF 4 ITA NO.2530/BANG/2018 ` DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR 1-06-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1-06-2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -06-2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -06-2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -06-2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -06-2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -06-2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS