Rajput Vichar manch Charitable Trust, V. CIT,

ITA 273/RAN/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2180 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 01-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK RAUSHAN SR
• Assessee Lawyers: DEVESH PODDAR S; SSH S K PODDAR
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Non compliance
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: RANCHI BENCH, RANCHI BEFORE SH. SHAMIM YAHYA, ACCOUNTANT MEMBER AND SH. PARTHA SARTHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 273/RAN/2014 ASSESSMENT YEAR: NIL RAJPUT VICHAR MANCH CHARITABLE TRUST, DHANBAD (PAN:AACTR3061Q) VS. COMMISSIONER OF INCOME TAX, DHANBAD. (APPELLANT) (RESPONDENT) AND APPELLANT BY S/SH. S.K. PODDAR & DEVESH PODDAR, ADVOCATES RESPONDENT BY SH. DEEPAK RAUSHAN, SR. STANDING COUNSEL DATE OF HEARING 03.03.2016 DATE OF PRONOUNCEMENT 04.03.2016 O R D E R PER SHAMIM YAHYA, AM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A) WHEREBY THE LD. CIT(A) HAS REJECTED THE ASSESSEES APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX ACT, 1961 (FOR SHORT THE ACT) 2. THE ASSESSEE FILED AN APPLICATION BEFORE THE LD . CIT FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. IN HIS ORDER, THE LD. CIT NOTED THAT ONE SET OF THE APPLICATION WAS FORWARDED TO THE DEPUTY COMMISSIONE R OF INCOME TAX, CIRCLE- 2, DHANBAD. THEREAFTER THE LD. CIT HELD AS UNDER: 2 ITA NO. 273/RAN/2014 ..THE DY. CIT IN HIS REPORT HAS MENTIONED THAT THE ACTIVITY OF THE TRUST IS NOT GENUINE AS THE TRUST IS NOT DOING ANY WORK IN THE FIELD OF EDUCATION, MEDICAL RELIEF OF POOR AND RURAL WOMEN O F THE SOCIETY. A NOTICE WAS ALSO ISSUED FROM HIS OFFICE VIDE F.NO . CIT/DHN/TECH/12A& 80G/2014-15/864, DATED 01.07.2014 FOR GIVING AN OPPORTUNITY TO THE APPLICANT OF BEING HEARD ON TO E XAMINE THE CLAIM OF THE APPLICANT, FIXING THE DATE OF COMPLIANCE ON 10.07.2 014 IN RESPONSE TO THE AFORESAID LETTER, NO COMPLIANCE HAS BEEN MADE BY THE TRUST. THROUGH THIS LETTER, IT WAS MENTIONED THAT IN CASE OF NON COMPLIANCE IT WOULD BE PRESUMED THAT YOU HAVE NOTHING TO SAY A ND ORDER WILL BE PASSED ON MERIT OF THE CASE AS PER DETAILS/DOCUMENTS AVAIL ABLE ON RECORD. BUT THE APPLICANT DID NOT TURN UP MEANING THEREBY THAT THE APPLICANT HAD NOTHING TO SAY IN THE MATTER. IN THE ABOVE FACTS AND CIRCUMSTANCES, THE ACTIVITY OF THE SAID TRUST REMAINS TO BE SUBSTANTIATED AND IT IS NOT ASCERTAIN ABLE THAT THE SAME TOWARDS THE DECLARED AIM AND OBJECTIVE OF THE TRUST . IN VIEW OF THE ABOVE FAILURE, THE APPLICATION FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 FILED BY THE TRUST/SOCIETY ON 31.01.2014 IS REJECTED. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 3. THE ASSESSEE RAISED VARIOUS GROUNDS WHICH ALSO I NCLUDE THE GROUND THAT THE PROPER OPPORTUNITY OF BEING HEARD HAS NOT BEEN GIVEN TO THE ASSESSEE, INASMUCH AS, THE SAID NOTICE DATED 01.07.2014 FOR T HE CASE BEING HEARD ON 10.07.2014, WAS NOT SERVED UPON THE ASSESSEE. 4. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS AND THE LD. CITS ORDER. WE FIND THAT THE ORDER OF LD. CIT IS EXTREME LY LACONIC AND NON-SPEAKING ORDER. MOREOVER, IT IS ALSO CLEAR THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER OPPORTUNITY OF BEING HEARD. IT IS SETTLED LAW THAT EVEN ADMINISTRATIVE ORDERS HAVE TO BE CONSISTENT WITH THE RULES OF NATURAL JUSTICE. HENCE, WE REMIT THE ISSUE TO THE 3 ITA NO. 273/RAN/2014 FILE OF LD. CIT. THE LD. CIT SHALL CONSIDER THE ISS UE AFRESH AND PASS PROPER AND SPEAKING ORDER AFTER GIVING THE ASSESSEE ADEQUATE O PPORTUNITY OF BEING HEARD. 5. IN THE RESULT, THIS APPEAL FILED BY THE ASSESSE E STANDS ALLOWED FOR STATISTICAL PURPOSES. THE DECISION IS PRONOUNCED IN THE OPEN COURT ON 4 TH MARCH, 2016. SD/- SD/- (PARTHA SARTHI CHAUDHURY) (SHA MIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 4 TH MARCH, 2016. RAJESH, SR.PS/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER SR. P.S., ITAT, RANCHI