M/s Madheshiya Vaishya Seva Trust , Bangalore V. The Commissioner of Income Tax ( exemption) , Bangalore

ITA 2663/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4845 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI N.V VASUDEVAN, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA NO.2663/BANG /2017 (ASST. YEAR - ) M/S MADHESHIYA VAISHYA SEVA TRUST, #422, RADIANT WHITE ORCHID, BANNERGHATTA ROAD, BENGALURU. . APPELLANT PAN AAETM1118M. VS. THE COMMISSIONER OF INCOME-TAX (EXEMPTIONS) BENGALURU. . RESPONDENT APPELLANT BY : SHRI SURESH MUTHUKRISHNAN, C.A RESPONDENT BY : MS. NEERA MALHOTRA, CIT DATE OF HEARING : 18-04-2018 DATE OF PRONOUNCEMENT : 25-04-2018 O R D E R PER SHRI N.V VASUDEVAN, JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE AGAINST TH E ORDER DATED 22/9/2017 OF COMMISSIONER OF INCOME-TAX (EXEMPTIONS), BENGALURU REJECTING AN APPLICATION BY THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12A OF T HE ACT. 2. THE ASSESSEE IS A TRUST. IT WAS FORMED UN DER DEED OF TRUST DATED 21/2/2015. THE OBJECT OF THE ASSESSEE WAS FOR ADVANCING THE CA USE OF EDUCATION, KNOWLEDGE, SPORTS, TRAINING, FINANCE ASSISTANCE TO THE POOR AN D NEEDY ETC. THE ASSESSEE FILED AN APPLICATION FOR GRANT OF REGISTRATION U/S 12A OF THE ACT ON 31/3/2017. IN THE ITA NO.2663/B/17 2 PRESCRIBED FOR MAKING SUCH APPLICATION VIZ., FORM NO.10, THE ADDRESS OF THE ASSESSEE HAS BEEN GIVEN AS 422, RADIANT WHITE ORCH IHD, BANERGHATTA ROAD, BENGALURU-560 076. 3. THE CIT(A) (EXEMPTION) BENGALURU ISSUED A LETTER DATED 11/9/2017 CALLING FOR CERTAIN CLARIFICATIONS. IT APPEARS THAT THIS L ETTER WAS SENT TO THE REGISTERED OFFICE OF THE TRUST AS GIVEN IN THE DEED OF TRUST VIZ., 3 RD FLOOR, SHUBH NIVAS, NO.31, 3 RD BLOCK, 18 TH CROSS, VISHWAPRIYA LAYOUT, BEGUR ROAD, BANGALORE 560 068. THE LETTER WAS UNSERVED BECAUSE IT WAS NOT THE ADDRESS IN WHICH THE ASSESSEE TRUST OPERATED. SINCE THE LETTER WAS RETURNED WITH THE P OSTAL ENDORSEMENT LEFT, THE CIT (EXEMPTIONS) WAS OF THE VIEW THAT IT WAS NOT POSSIB LE TO VERIFY THE SATISFACTION OF THE CONDITION FOR GRANT OF REGISTRATION U/S 12A OF THE ACT. HE, THEREFORE, DISMISSED THE APPLICATION FOR GRANT OF REGISTRATION. 4. AGGRIEVED BY THE AFORESAID ORDER OF THE CIT(EXEMPTIONS), THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNA L. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. I T IS CLEAR FROM THE IMPUGNED ORDER THAT THE ASSESSEE DID NOT HAVE PROPER OPPORTUNITY O F BEING HEARD AND THERE WAS VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE. AD MITTEDLY, THE NOTICE BY THE CIT (EXEMPTIONS) CALLING FOR EXPLANATION WAS SENT TO TH E WRONG ADDRESS AND, THEREFORE, THERE WAS NO COMPLIANCE FROM THE SIDE OF THE ASSESSEE. KEEPING IN MIND THE AFORESAID FACTS, WE ARE OF THE VIEW THAT IT WOU LD BE JUST AND APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND DIRECT THE CIT(EXEMPTI ONS) TO EXAMINE AFRESH THE APPLICATION FOR GRANT OF REGISTRATION FILED BY THE ASSESSEE ON 31/3/2017 AFTER AFFORDING THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. WE HOLD AND DIRECT ACCORDINGLY. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.2663/B/17 3 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH APRIL, 2018 . SD/- SD/- (JASON P BOAZ) (N.V VASUDEVAN) ACCOUNTANT MEMBER JUD ICIAL MEMBER BANGALORE DATED : 25/4/2018 VMS COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT CONCERNED. 5.DR 6.GF BY ORDER SR. PRIVAT E SECRETARY, ITAT, BANGALORE ITA NO.2663/B/17 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR. P. S... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT.. 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..