Mother Care Charitable Trust, Baroda V. The CIT-I, Baroda

ITA 2586/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9289 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-03-2016
• Assessment Year: misc
• Appeal Filed On: 09-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD BEFORE S/SHRI RAJPAL YADAV, JM, & MANISH BORAD, AM. ITA NO.2586/AHD/2012 ASST. YEAR: MOTHER CARE CHARITABLE TRUST, 3/B, MAI KRUPA SOCIETY, OLD CHANNI ROAD, VADODARA. VS. CIT-I, BARODA. APPELLANT RESPONDENT PAN AAAAA 4671J APPELLANT BY SHRI HARDIK VORA, AR RESPONDENT BY SHRI NARENDRA SINGH, SR.DR DATE OF HEARING: 3/3/2016 DATE OF PRONOUNCEMENT: 8/03/2016 O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER . THIS APPEAL OF ASSESSEE IS DIRECTED AGAINST THE OR DER OF LD. CIT- I, BARODA, PASSED U/S 80G(5)(VI) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) READ WITH RULE 11AA(5) OF THE I.T. RULES, 1962, ON 18/9/2012. ASSESSEE HAS RAISED FOLLOWING GROUNDS IN THIS APPEA L :- 1. THE LEARNED COMMISSIONER OF INCOME TAX HAS ERRED IN LAW BY PASSING ORDER U/S 80G(5)(VI) OF THE INCOME TAX ACT, 1961 R.W.S. 1 1 AA(5) OF THE I.T. RULES, 1962, WITHOUT CONSIDERING THE SUBMISSION PUT FORWAR D BEFORE PASSING THE ORDER. 2. THE LEARNED COMMISSIONER OF INCOME TAX HAS NOT C ONSIDERED THE FACTS PUT FORWARD IN TRUE PROSPECTIVE. ITA NO. 2586/AHD/2012 ASST. YEAR 2 3. THE LEARNED COMMISSIONER OF INCOME TAX OUGHT TO HAVE CONSIDERED THE SUBMISSION AND OPPORTUNITY OF BEING HEARD SHOULD BE GIVEN TO THE ASSESSEE. 4. THE APPELLANT MAY BE ALLOWED TO ADD, AMEND, ALT ER OR RAISE ADDITIONAL GROUNDS OF APPEAL. 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE ARISING O UT OF THE FOUR GROUNDS IS AGAINST THE ACTION OF LD. CIT BY NOT GRA NTING APPROVAL U/S 80G(5)(VI) OF THE AT. 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT ASSESS EE FILED AN APPLICATION IN FORM NO.10G ON 19.3.2012 FOR REGISTR ATION U/S 80G(5)(VI) OF THE ACT. IN ORDER TO VERIFY THE GENUI NENESS OF THE TRUST A NOTICE WAS ISSUED TO THE ASSESSEE FOR FURNISHING VA RIOUS INFORMATION. DURING THE COURSE OF PROCEEDINGS BEFORE CIT IT WAS OBSERVED THAT ASSESSEE HAS NOT SUBMITTED DETAILS OF BANK ACCOUNT EXCEPT FOR ASST. YEAR 2010-11, PAYMENT OF RENTS PAID AT RS.22,,22,64 0/- TO M/S LAXMI NARAYAN TRADERS AND THE SAME WAS NOT VERIFIABLE AS NECESSARY BANK ACCOUNT FOR F.Y.2011-12 WAS NOT PRODUCED FOR VERIFI CATION OF REASONABLENESS OF RENT PAID AS WELL AS DETAILS OF T DS DEDUCTED IF ANY, WAS NOT FILED AND ALSO NO SUFFICIENT REPLY WAS FILED BY THE ASSESSEE IN REGARD TO ADVANCE GIVEN TO THE TRUSTEES TOWARDS REIMBURSEMENT OF EXPENSES. DUE TO LACK OF PROPER RE PLY ON THE PART OF ASSESSEE IN RELATION TO VARIOUS ISSUES MENTIONED AB OVE, LD. CIT REJECTED THE APPLICATION FOR APPROVAL U/S 80G(5)(VI ) OF THE ACT. 4. AGGRIEVED, ASSESSEE IS NOW IN APPEAL BEFORE US. ITA NO. 2586/AHD/2012 ASST. YEAR 3 5. LD. AR SUBMITTED THAT IN REPLY TO NOTICE OF LD. CIT DATED 27.08.2012 ASSESSEE TRUST HAS FILED COPIES OF TRUST DEED, DETAILS OF EDUCATIONAL ACTIVITIES CARRIED ON BY THE TRUST, COP Y OF BANK ACCOUNT FOR LAST 3 YEARS, AUDITED FINANCIAL STATEMENTS FOR ASSE SSMENT YEAR 2012- 13, COPY OF CERTIFICATE OF REGISTRATION U/S 12A, CO PY OF TRUST DEED, DETAILS OF FEES RECEIVED FROM STUDENTS AND GIVEN TO THE TEACHERS AS WELL AS DETAILS OF RENT. HOWEVER, LD. AR ALSO SUBMI TTED THAT IF ONE MORE OPPORTUNITY IS GIVEN TO THE ASSESSEE THEN ALL NECESSARY DETAILS WHICH LD. CIT HAS REFERRED TO IN HIS APPELLATE ORDE R CAN BE PRODUCED AND EXPLAINED TO HIS SATISFACTION. 6. LD. DR DID NOT RAISE ANY OBJECTION TO THE SUBMIS SIONS OF LD. AR THAT IF THE MATTER IS SET ASIDE TO THE FILE OF LD. CIT FOR FRESH ADJUDICATION. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT APPLICATION IN FORM NO.10G HAS BEEN FILED FOR SEEKING APPROVAL U/S 80G(5)(VI) OF THE ACT AND WE A LSO FILED THAT REPLY DATED 3.9.2012 WAS FILED BY THE ASSESSEE MENTIONING VARIOUS DETAILS AND ENCLOSING NECESSARY EVIDENCES REFERRED TO IN TH E NOTICE DATED 27.8.2012 ISSUED BY LD. CIT. WE FURTHER FIND THAT L D. CIT HAS REJECTED THE APPLICATION IN FORM NO.10G FOR THE SUPPLY OF IN COMPLETE INFORMATION BY THE ASSESSEE MAINLY IN RELATION TO R ENT EXPENSES, FEW BANK STATEMENTS, REASONABLENESS OF ADVANCES GIVEN T O TRUSTEES AND DETAILS OF TDS, IF ANY, MADE ON THE RENT PAID BY TH E ASSESSEE. WE FIND THAT BOTH THE PARTIES HAVE AGREED TO THE SITUA TION THAT IF THE ISSUE IS REMANDED BACK TO THE LD. CIT FOR FRESH ADJUDICAT ION SO THAT ITA NO. 2586/AHD/2012 ASST. YEAR 4 WHATEVER QUERIES REMAINING UNRESOLVED TO THE SATISF ACTION OF LD. CIT WILL BE ADDRESSED TO BY THE ASSESSEE WITH COLLABORA TIVE EVIDENCES. ACCORDINGLY, WE SET ASIDE THE ORDER OF LF. CIT AND REMIT BACK THE ISSUE TO HIS FILE WITH THE DIRECTION TO GIVE REASONABLE O PPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE DECIDING THE SAME. IT IS NEEDLESS TO MENTION HERE THAT ASSESSEE WILL PROVIDE THE REQUIRE D DETAILS. THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH MARCH, 2016 SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER DATED 8/03/2016 MAHATA/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, AHMEDABAD ITA NO. 2586/AHD/2012 ASST. YEAR 5 1. DATE OF DICTATION: 3/03/2016 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 4/03/2016 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: 8/3/16 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: