K.C.A. Charitable Trust, Kolkata V. CIT(Exemption), Kolkata

ITA 284/KOL/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2408 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 24-04-2024
• Assessment Year: misc
• Appeal Filed On: 12-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Set aside
• Section: 80G; 12A

Judgement Text

आयकर अपीलीय अधिकरण कोलकाता 'बी' पीठ, कोलकाता म ें IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA श्री राज े श क ु मार, ल े खा सदस्य एवं श्री प्रदीप क ु मार चौब े , न्याधयक सदस्य क े समक्ष Before SRI RAJESH KUMAR, ACCOUNTANT MEMBER & PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER I.T.A. No.: 284/KOL/2024 Assessment Year: N.A. K.C.A. Charitable Trust...........................................................Appellant [PAN: AAETK 6583 A] Vs. CIT (Exemption), Kolkata......................................................Respondent Appearances: Assessee represented by: Miraj D. Shah, A/R. Department represented by: Abhijit Kundu, CIT (D/R). Date of concluding the hearing : April 25 th , 2024 Date of pronouncing the order : May 10 th , 2024 ORDER Per Pradip Kumar Choubey, Judicial Member: The instant appeal filed by the assessee is directed against the order passed by ld. Commissioner of Income-tax (Exemption), Kolkata [in short ld. ‘CIT(Exemption)’] in relation to registration applied u/s 80G of the Income Tax Act, 1961 (in brevity the ‘Act’) dated 22.09.2022. 2. Ld. Counsel for the assessee before entering into the merit of the appeal has submitted with regard to his condonation petition as appeal had been filed after a delay of 84 days. Ld. Counsel for the assessee submitted that the delay as alleged to be caused was under honest and bona fide belief as the assessee has availed the forum of ld. CIT (Exemption) thrice once after another I.T.A. No.: 284/ KOL/2024 Assessment Year: N.A. K.C.A. Charitable Trust. Page 2 of 5 for remedy as it was in the impression of the assessee that the relief shall be granted by ld. CIT (Exemption) and roughly when the application has been rejected on 20.11.2023 then on the advice of the Sr. tax advisor the assessee has filed the present appeal before the ITAT. The submission of the ld. Counsel for the assessee is that delay which is alleged to be caused was not intentional rather due to the honest and bona fide belief. Hence, condonation petition should be allowed and assessee to be permitted to place his case. He has cited a decision of the Hon'ble Apex Court in the case of N. Balakrishnan vs. M. Krishnamurthy reported in [1998] 7 SCC 123. 2.1. The ld. D/R did not raise much emphasis on the condonation petition of the assessee. 2.2. We have perused the application of the condonation petition and it appears to us that the assessee has filed an application u/s 80G of the Act which was rejected. The assessee again re-applied for the registration u/s 80G(5) of the Act which was also rejected. Ultimately this appeal has been filed. It is settled law by the Hon'ble Apex Court that the primary function of the Court is to adjudicate the dispute between the parties and to advance substantial justice. The expression ‘sufficient cause’ employed by the Legislature is adequately elastic to enable the Court to apply the law in a meaningful manner which subserves the ends of justice. The Hon'ble Apex Court in a catena of decisions has further held that ‘The Court should not adopt an injustice-oriented approach in rejecting the application of r condonation of delay.’ 2.3. Keeping in view the principles of the law as well as facts enumerated by the assessee in his condonation petition, the petition u/s 5 of the Limitation Act is allowed, delay is condoned and the appeal is taken for hearing. 3. The ld. Counsel for the assessee challenges the impugned order of ld. CIT (Exemption) by submitting that ld. CIT (Exemption) erred in law as well as on facts in rejecting the application of the assessee for approval u/s 80G(5)(iii) of the Act. The ld. Counsel for the assessee further submits that the ld. CIT (Exemption) rejected the application made by the assessee on the I.T.A. No.: 284/ KOL/2024 Assessment Year: N.A. K.C.A. Charitable Trust. Page 3 of 5 grounds being non-production of details and documents though the documents which were required or which were sought by ld. CIT (Exemption) has already been filed by the assessee along with the application made u/s 12A of the Act and DIT(Exemption) based on that documents allowed the application of the assessee and granted the registration u/s 12A of the Act vide order dated 18.09.2022. Ld. Counsel for the assessee further submits that the same CIT (Exemption) allowed the registration u/s 12A of the Act to the assessee after going over the documents filed by the assessee and it is surprising that the same CIT (Exemption) rejected the application u/s 80G of the Act only on the ground that there is no compliance, which is against the law and liable to set aside. He has cited the following decisions: i) Hardayal Charitable & Educational Trust vs. CIT, [2013] 32 taxmann.com 341 (Allahabad) ii) Friends of Kolkata vs. CIT (Exemption), ITA No. 105/KOL/2024 (ITAT, Kolkata) 4. Ld. D/R has only supported the impugned order thereby submitting that it is the duty of the assessee to comply the direction of the ld. CIT (Exemption). 5. Upon hearing the rival submission of the Counsels of the respective parties, we have perused the case of the assessee and found the following facts— a) That the assessee is a Charitable Trust formed by a deed of Trust on 25/08/2021. b) The said Trust applied for its registration first proviso to u/s 80G (5) of the IT Act 1961 vide form 10A which was filed on 08-12-2021. c) That provisional approval was granted under clause (iv) of first proviso to u/s 80G (5) of the IT Act 1961 dated 31-12-2021 w.e.f. 31-12-2021 to AY 2024-2025 in Form 10AC. d) The said Trust applied for its registration under clause (iii) of first proviso to u/s 80G (5) of the IT Act 1961 vide form 10AB which was filed on 31-03-2022. I.T.A. No.: 284/ KOL/2024 Assessment Year: N.A. K.C.A. Charitable Trust. Page 4 of 5 e) The hearing of this application was fixed by a notice dated 03-09-2022 on 12-09-2022. The said application was rejected by an order clause (II) of second proviso to u/s 80G (5) of the IT Act 1961 dated 22-09-2022 on the grounds that the assessee did not produce the relevant documents and there was no compliance with the notice and thus the application was rejected. Hence this appeal has been preferred. 6. On perusal of the record it reveals to us that the assessee has already submitted his entire documents/papers before the ld. CIT (Exemption) along with the application made u/s 12A of the Act and the DIT(Exemption) based on the documents allowed the application and granted the registration u/s 12A of the Act. We further, find that from the paperbook filed by the assessee that the documents sought for the registration u/s 80G of the Act where the same which was filed by the assessee along with the application u/s 12A of the Act. 7. Keeping in view the above facts, we are of the firm view that the order of ld. CIT (Exemption) is not sustainable under law, accordingly, set aside. Ld. CIT (Exemption) ought to pass an order on the documents which were already in his possession and he granted the registration u/s 12A of the Act on the very same documents. Accordingly, the case record is hereby remanded back to the file of ld. CIT (Exemption) for granting registration after perusal of the documents which has already been filed by the assessee. The assessee is also directed to cooperate in the proceeding. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 10 th May, 2024. Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member Dated: 10.05.2024 Bidhan (P.S.) I.T.A. No.: 284/ KOL/2024 Assessment Year: N.A. K.C.A. Charitable Trust. Page 5 of 5 Copy of the order forwarded to: 1. K.C.A. Charitable Trust, 5 th Floor, Continental Chambers, 15A, Hemanta Basu Sarani, Dalhousie, Kolkata, West Bengal, 700 001. 2. CIT (Exemption), Kolkata. 3. CIT(A)- 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata