Chovis Gam Sachidanand Medical & Research Centre, Anand V. The Pr. CIT (Exemption), , Ahmedabad

ITA 2604/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4973 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 27-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AP ARNA AGRAWAL
• Keywords: Principle of natural justice; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.2604/AHD/2017 ( / ASSESSMENT YEAR : 2016-18) CHOVIS GAM SACHIDANAND MEDICAL & RESEARCH CENTRE BORSAD SINGLAV ROAD TA. BORSAD DIST. ANAND 388 540 / VS. PR.CIT(EXEMPTION) AHMEDABAD # ./ ./ PAN/GIR NO. : AAATC 7495 F ( #% / APPELLANT ) .. ( &#% / RESPONDENT ) #%' / APPELLANT BY : NONE &#%(' / RESPONDENT BY : MS. APARNA AGRAWAL, CIT-DR )*(+ / DATE OF HEARING 08/05/2019 ,-./(+ / DATE OF PRONOUNCEMENT 14/05/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE ASSESSEE AGAINST THE ORDER OF THE PRINCIPAL COMMISS IONER OF INCOME TAX(EXEMPTIONS)-AHMEDABAD [PR.CIT(A) IN SHORT] DATED 27/09/2017 RELEVANT TO ASSESSMENT YEAR (AY) 2016-17. ITA NO. 2604/AH D/2017 CHOVIS GAM SACHIDANAND MEDICAL & RESEARCH CENTRE V S.PR.CIT(E) ASST.YEAR 201617 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE R EAD AS UNDER:- 1. IN LAW, ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE IMPUGNED REJECTION ORDER PASSED BY THE LEARNED CIT( EXEMPTION), AHMEDABAD IS AGAINST NATURAL JUSTICE, BAD IN LAW AN D DESERVES TO BE CANCELLED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(EXEMPTION), AHMEDABAD HAS GROSSLY ERRED IN REJE CTING THE LEGITIMATE APPLICATION FOR APPROVAL U/S.10(23C)(IV) OF THE INCOME TAX ACT. HE MAY BE DIRECTED TO GRANT THE REQUISITE APP ROVAL. 3. WHEN THE MATTER WAS CALLED FOR HEARING, NON-APP EARED FOR THE ASSESSEE. THE MATTER IS ACCORDINGLY PROCEEDED EX-PARTE . 4. WITH THE ASSISTANCE OF THE LD.DR FOR THE REVENUE , WE FIND THAT APPLICATION FOR SEEKING APPROVAL UNDER S.10(23C)(VI ) OF THE ACT WAS DISPOSED OF ON FOLLOWING TERMS: IN THIS CASE, THE APPLICATION FOR SEEKING APPROVAL U/S.10(23C)(VI) OF THE I.T.ACT WAS RECEIVED ON 27.09.2016 BY THIS O FFICE IN FORM 56D. 2. ON PERUSAL OF THE FINANCIAL STATEMENT FOR THE Y EAR ENDING 31.03.2014, IT IS SEEN THAT THE ASSESSEE HAD A SURP LUS OF RS.35,89,297/- ON TOTAL RECEIPT OF RS.97,89,066/-. THIS MEANS THAT THE INSTITUTIONS IS NOT BEING RUN FOR PHILANTHROPIC PURPOSES. FURTHER, IN THE DETAILS SUBMITTED, THE APPLICANT NO WHERE DEMONSTRATED ABOUT FREE OR CONCESSIONAL TREATMENT B EING GIVEN IN THIS HOSPITAL IN COMPARISON TO OTHER COMMERCIAL HOS PITALS. IN THIS VIEW OF THE MATTER, THE APPLICATION OF THE APPLICAN T UNDER SECTION 10(23C)(VI) OF THE ACT IS HEREBY REJECTED. ITA NO. 2604/AH D/2017 CHOVIS GAM SACHIDANAND MEDICAL & RESEARCH CENTRE V S.PR.CIT(E) ASST.YEAR 201617 - 3 - 5. WE FIND THAT THE ORDER PASSED BY THE PR.CIT(E) D ECLINING APPROVAL UNDER S.10(23C)(VI) IS NON-DESCRIPT AND CRYPTIC. T O ENSURE ATTAINING OF FAIRNESS, THE ADJUDICATING AUTHORITY IS EXPECTED TO PROVIDE SPEAKING ORDER WITH REASONS. NEEDLESS TO SAY, REASONS FOR APPROVA L OF REJECTION OF APPLICATION WOULD REVEAL MANIFESTATION OF THE MIND OF THE ADJUDICATOR. THE ORDER PASSED BY THE PR.CIT(E) DATED 27/09/2017 IS THUS SET ASIDE AND THE ENTIRE MATTER IS REMITTED BACK TO THE FILE OF T HE PR.CIT(E) FOR DE NOVO ADJUDICATION AFTER TAKING INTO ACCOUNT THE SUBMISSI ONS AND EXPLANATIONS MADE ON BEHALF OF THE ASSESSEE. NEEDLESS TO SAY, IT SHALL BE OPEN TO ASSESSEE TO MAKE SUITABLE REPRESENTATION TO SUPPORT ITS CASE. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED EX-PARTE FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 14 / 0 5 /201 9 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 14/ 05 /2019 3..),.)../ T.C. NAIR, SR. PS ITA NO. 2604/AH D/2017 CHOVIS GAM SACHIDANAND MEDICAL & RESEARCH CENTRE V S.PR.CIT(E) ASST.YEAR 201617 - 4 - !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE PR.CIT(E)-AHMEDABAD 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<* / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION ..8.5.19 (DICTATION-PAD 4- PAGE S ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 10.5.19 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.14.5.19 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 14.5.19 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER