Shri. Babbuswamy Daivasthana, Manipal V. CIT, Bangalore

ITA 275/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9741 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 23-02-2017
• Assessment Year: misc
• Appeal Filed On: 26-02-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I TA NO. 275 / BANG/2 016 (ASSESSMENT YEAR: 20 16 - 17 ) SRI BABBUSWAMY DAIVASTHANA, 16 - 459A, S.NO.52 - IA/ P NEAR MIT CAMPUS, MANIPAL - 576104. PAN:AAPTS 6188L VS. APPELLANT COMMISSIONER OF INCOME - TAX(EXEMPTIONS) BENGALURU. RESPONDENT APPELLANT BY : SMT.SHEETAL BORKAR, ADVOCATE. RESPONDENT BY : SHRI M.K.BIJU, JCIT(DR) DATE OF HEARING : 23/02/2017 DATE OF PRONOUNCEMENT : 31 /03/2017 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE CIT(EXEMPTION S ), BENGALURU, DATED 12/ 01 /2016 PASSED U/S 12AA(1)(B) OF THE INCOME - TAX ACT,1961 [ THE ACT FOR SHORT] DENYING GRANT OF REGISTRATION TO THE ASSESSEE - TRUST UNDER THE PROVISIONS OF SECTION 12AA OF THE ACT. 2. THE APPELLANT RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO . 275 /BANG/201 6 PAGE 2 OF 4 ITA NO . 275 /BANG/201 6 PAGE 3 OF 4 3. THE APPELLANT IS A PUBLIC CHARITABLE TRUST, REGIST ERED UNDER THE PROVISIONS OF THE SOCIETIES REGISTRATION ACT VIDE DEED DATED 01/07/2015. THE APPELLANT FILED AN APPLICATION IN FORM 12 A FOR REGISTRATION U/S 12AA OF THE ACT ON 28/08/2015. ON RECEIPT OF SAID APPLICATION, THE CIT(EXEMPTION), BENGALURU ISSUE D A LETTER DATED 05/10/2015 CALLING FOR CERTAIN INFORMATION WHICH WAS COMPLIED WITH BY THE ASSESSEE - TRUST VIDE ITS LETTER DATED 15/10/2015. SUBSEQUENTLY, THE CIT(EXEMPTIONS) THROUGH HIS INCOME - TAX OFFICER (EXEMPTIONS) ISSUED ANOTHER LETTER DATED 17/12/201 5 CALLING UPON THE ASSESSEE TO FILE CERTAIN DETAILS WHICH HAS NOT BEEN COMPLIED WITH BY THE ASSESSEE - TRUST. THEREFORE, THE CIT(EXEMPTION) PRESUMED THAT THE ASSESSEE WAS NOT INTERESTED IN PROSECUTION OF THE APPLICATION AND ON THIS REASON, THE APPLICATION W AS REJECTED. 4 . BEING AGGRIEVED, THE ASSESSEE IS BEFORE US IN THE PRESENT APPEAL. LEARNED COUNSEL FOR ASSESSEE VEHEMENTLY ARGUED THAT THE CIT(EXEMPTION S ) HAS GONE BEYOND HIS POWER TO INQUIRE INTO ISSUES WHICH HAVE TO BE CONSIDERED ONLY AT THE STAGE OF THE ASSESSMENT OF THE TRUST. SHE FURTHER ARGUED THAT AT THE TIME OF ITA NO . 275 /BANG/201 6 PAGE 4 OF 4 GRANTING REGISTRATION U/S 12AA, THE CIT(EXEMPTION S ) IS ONLY EXPECTED TO LOOK AT THE OBJECTS WHETHER CHARITABLE IN NATURE OR NOT. IT WAS SUBMITTED THAT THE ASSESSEE COULD NOT SUBMIT REQU IRED DETAILS FOR WANT OF SUFFICIENT TIME. THEREFORE, PRAYED THAT THE ISSUE MAY BE RESTORED BACK TO THE FILE OF THE CIT(EXEMPTION S ) FOR DE NOVO EXAMINATION. THE LEARNED DR HAS NO SERIOUS OBJECTION FOR SENDING BACK THE MATTER FOR DE NOVO EXAMINATION BY T HE CIT(EXEMPTION). IN THE CIRCUMSTANCES, WE REMIT THE ISSUE BACK TO THE FILE OF THE CIT(EXEMPTION) FOR DE NOVO CONSIDERATION OF THE APPLICATION AFTER AFFORDING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . IN THE RESULT, THE APPEAL OF THE ASSESS EE IS TREATE D AS PARTLY ALLOWED FOR STATISTICAL PUR POSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MARCH , 2017 S D/ - SD/ - ( SUNIL KUMAR YADAV ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 31 / 03 /201 7 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE