M/s. Sasken Foundation , Bengaluru V. Income Tax Officer (Exemptions), Ward-1, , Bengaluru

ITA 2852/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7761 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 21-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B R SUDHEENDRA
• Keywords: Opportunity of being heard
• Section: 12A

Judgement Text

ITA.2852 & 2807/BANG/2017 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.2852 & 2807/BANG/2017) (ASSESSMENT YEAR : NA) SASKEN FOUNDATION, C/O. SASKEN TECHNOLOGIES LTD, 139/25, RANG ROAD, DOMLUR, BENGALURU 560071 .. APPELLANT PAN : AASTS4105L V. INCOME-TAX OFFICER (EXEMPTIONS), WARD -1, BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. B. R. SUDHEENDRA, ADVOCATE REVENUE BY : SHRI. C. SUNDAR RAO, CIT HEARD ON : 28.06.2018 PRONOUNCED ON : 04.07.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THESE ARE APPEALS FILED BY THE ASSESSEE, AGAINST T HE SEPARATE ORDERS U/S.80G(5)(VI) OF THE IT ACT, 1961, OF THE CIT (EXEMPTIONS), BENGALURU, DT.13.09.2017, WHEREIN THE APPLICATIONS FOR RECOGNITION U/S.80G(5)(VI) OF THE ASSESSEE AND REGISTRATION OF THE TRUST U/S.12AA OF THE ACT, ARE REJECTED. ITA.2852 & 2807/BANG/2017 PAGE - 2 THE GROUNDS RAISED IN ITA.2852/BANG/2017 ARE AS FOL LOWS : THE GROUNDS RAISED IN ITA.2807/BANG/2017 ARE AS FOL LOWS : 02. THE ASSESSEE FILED APPLICATION FOR REGISTRATION OF TRUST U/S.12A OF THE ACT, AND FOR GRANT OF RECOGNITION U/S.80G OF THE ACT, ON 03.03.2017. THE ASSESSEE WAS ASKED TO COMPLY VIDE LETTER DT.01.05.2017, VARIOUS DISCREPANCIES / CLARIFICATIO NS. THE ASSESSEE HAD FILED THE REPLIES ON 17.07.2017. HOWEVER, THE CIT (EX) NOTED ITA.2852 & 2807/BANG/2017 PAGE - 3 THAT THE ASSESSEE HAD NOT FILED THE DETAILS / CLARI FICATION WITH RESPECT TO QUERY NO.11 WHICH READ AS UNDER : PLEASE SHOW-CAUSE AS TO WHY YOUR APPLICATIONS SHOU LD NOT BE REJECTED IN VIEW OF COMMERCIAL OBJECTS ENVIS AGED IN THE DEED (CLAUSE 7-IV) OF THE DEED) ? IT WAS THE CASE OF THE ASSESSEE THAT THE CIT (EX) H AD REJECTED THE APPLICATIONS OF THE ASSESSEE VIDE A STEREOTYPED AND MECHANICAL MANNER VIDE ORDER DT.13.09.2017. 03. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE LD. AR FOR THE ASSESSEE HAS DRAWN OUR ATTENTION TO PAGE 33 OF THE PAPER BOOK WHEREIN IT IS MENTIONED THAT CLAUSE 7-IV DEALS WITH THE POWERS OF THE TRUSTEES TO RAISE OR SECURE PAYME NTS OF MONEY AND ALSO TO LEND MONEY WITH OR WITHOUT SECURITY. IT WA S CONTENDED THAT THE POWER OF THE TRUSTEES SHOULD NOT BE CONFUSED WI TH THE POWER OF THE TRUST. HOWEVER, WE NOTICE THAT THE CIT (EX) DE SPITE RECORDING THE RECEIPT OF THE CLARIFICATION DT.17.07.2017 HAD NOT PASSED THE DETAILED ORDER ACCEPTING OR REJECTING THE APPLICATI ON OF THE ASSESSEE AND HAS MERELY DISMISSED THE APPLICATION ON THE GRO UND THAT ASSESSEE HAS NOT PROVIDED THE INFORMATION. IN OUR VIEW, ONCE THE ASSESSEE HAS FILED DETAILED EXPLANATION AND REPLIED GIVING PARAWISE REPLY TO THE VARIOUS OBJECTIONS, IT IS THE BOUNDEN DUTY OF THE CIT (EX) TO EXAMINE AND PASS A DETAILED SPEAKING ORDER ACCEPTING OR REJECTING THE EXPLANATION. AS THE NEEDFUL HAS NOT BEEN DONE BY THE CIT (EX), WE DEEM IT APPROPRIATE TO DIRECT THE CIT (EX) TO CONSIDER THE ENTIRE PAPER BOOK FILED BEFORE US RUNNING INTO 154 PAGES AND DECIDE THE MATTER IN ACCORDANCE WITH LAW. ITA.2852 & 2807/BANG/2017 PAGE - 4 ITA.2807/BANG/2017 : 04. THE CIT (EX) HAS PASSED THE ORDER ON 13.09.2017 REJECTING THE APPLICATION OF THE ASSESSEE FOR RECOGNITION U/S.80G OF THE ACT, ON THE PREMISE THAT THE APPLICATION OF THE ASSESSEE FO R REGISTRATION U/S.12A WAS DISMISSED BY HIM. 05. AS WE ARE REMANDING BACK THE MATTER IN RESPECT OF 12A REGISTRATION, TO THE FILE OF CIT (EX), WE DEEM IT A PPROPRIATE TO REMAND THIS MATTER ALSO TO THE FILE OF THE CIT (EX) TO TAKE A PROPER DECISION IN THE LIGHT OF THE FINDING WHICH THE CIT (EX) WOULD GIVE, AFTER CONSIDERING THE MERITS OF THE CASE IN ACCORDA NCE WITH LAW. NEEDLESS TO SAY THAT THE CIT (EX) SHALL DECIDE THE MATTER AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSE E AND IF REQUIRED, THE ASSESSEE WOULD BE PERMITTED TO FILE ANY OTHER A DDITIONAL DOCUMENTS IN SUPPORT OF ITS CASE. THE ASSESSEE SHA LL COOPERATE IN THE ADJUDICATION OF THE MATTER. 06. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH DAY OF JULY, 2018. SD/- SD/- (INTURI RAMA RAO) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER BENGALURU DATED : 04.07.2018 MCN* ITA.2852 & 2807/BANG/2017 PAGE - 5 COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.