Druk Jetavan Charitable Trust, Darjeeling V. CIT(Exemption), Kolkata

ITA 324/KOL/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9009 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 30-10-2022
• Assessment Year: 2017-2018
• Appeal Filed On: 31-05-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice
• Section: 80G; 12A; 12AA; 10B

Judgement Text

1. ITA Nos.324 & 325/Kol/2022 AY 2017-18 Druk Jetavan Charitable Trust आयकर अपील य अ धकरण, पीठ “A” , कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL BENCH “A”KOLKATA सम : ी संजय गग , या यक सद य एवं ी ी मनीष बोरड, लेखा सद य Before: Shri Sanjay Garg, Judicial Member and Shri Manish Borad, Accountant Member आयकर अपील सं.य/ ITA Nos. 324 & 325/Kol/2022 Assessment Year: 2017-18 Druk JetavanCharitable Trust Monastery, Tenzing Norkye Road, West Pond Dali, Darjeeling- 734101, W.B बनाम V/s. CIT (Exemption), Kolkata 6 th Fl., 10B Middleton Row, Kolkata-700 071. PAN: AACTD 1102G अपीलाथ /Appellant .. यथ /Respondent अपीलाथ क ओर से/By Appellant Shri Himanshu Gandhi, CA Ld.AR यथ क ओर से/By Respondent Shri Biswanath Das, Ld.CIT/DR स ु नवाई क तार ख/Date of Hearing 31-10-2022 घोषणा क तार ख/ Date of Pronouncement 03-11-2022 आदेश /O R D E R PER BENCH : Both the instant appeals are directed against the separate orders both dt. 15-09-2017 passed u/s. 12AA and 80G of the Income-tax Act, 1961 ( hereinafter, referred to as the ‘Act’ by the ld. Commissioner of 2. ITA Nos.324 & 325/Kol/2022 AY 2017-18 Druk Jetavan Charitable Trust Income-tax (Exemptions), ( in short, referred to the ld. CIT ( E ), Kolkata for the assessment year 2017-18. 2. The assessee has raised the following grounds of appeal :- ITA No. 324/Kol/2022 1. On the facts and circumstances of the case and the law, the Ld. Commissioner of Income Tax-(Exemption), Kolkata erred in rejecting the application of the trust for registration under Section 12AA of the Income Tax Act, 1961 even though the trust had complied with all the requirements of the provisions of the Income Tax Act in general and provisions of Section 12AA(1)(b)(ii) as well as Section 12A of the said Act in particular. 2. On the facts and circumstances of the case and the law, the Ld. Commissioner of Income Tax-(Exemption), Kolkata erred in rejecting the application of the trust for registration under Section 12AA of the Income Tax Act, 1961 without providing any opportunity of being heard which was in gross violation of the principles of natural justice. 3. The order rejecting the application for registration u/ s 12AA of the Act is bad in law and deserves to be quashed. 4. The appellant craves leave to add, alter, grounds of appeal. ITA No. 325/Kol/2022 1. On the facts and circumstances of the case and the law, the Ld. Commissioner of Income Tax-(Exemption), Kolkata erred in rejecting the application of the trust for registration under Section 80G of the Income Tax Act,1961 even though the trust had complied with all the requirements of the provisions of the Income Tax Act in general and provisions of Section 80G as well as Section 12A of the said Act in particular. 2. On the facts and circumstances of the case and the law, the Ld. Commissioner of Income Tax-(Exemption), Kolkata 'erred' in rejecting the application of the trust for registration under Section 80G of the Income Tax Act, 1961 without providing any opportunity of being heard. which was in gross violation of the principles of natural justice. 3, The order rejecting the application for registration u/s 80G of the Act is bad in law and deserves to be quashed. 4. The appellant craves leave to add, alter, amend, modify or delete any of the aforesaid grounds of appeal. 3. At the outset before us the Ld. Counsel for the assessee submitted that the assessee did not receive notice of hearing as well as 3. ITA Nos.324 & 325/Kol/2022 AY 2017-18 Druk Jetavan Charitable Trust the impugned orders. The assessee has procured the copy of the impugned orders through RTI (Right to Information Act). Since the assessee did not get adequate opportunity to plead its case before the ld. CIT(E) for the application filed u/s. 12AA & 80G of the Act, the issues raised in the instant appeals under consideration may be restored to the ld. CIT ( E ) for fresh adjudication. 4. Per contra, the Ld. Departmental Representative stated that sufficient opportunity has been provided, but the assessee failed to appear/avail the same. However, he is fair enough not to oppose the request of the assessee if the issues raised in the instant appeals are restored to the ld. CIT ( E ) for fresh adjudication. 5. We have heard the rival contentions and perused the record placed before us. The assessee is a trust. It had filed application for registration u/s. 12AA on 17-03-2017 and u/s. 80G of the Act also on 03-17-2017 before the ld. CIT-E, who vide his separate orders both dt. 15-07-2019 rejected both the applications of assessee for non- compliance non-production of documents, annual accounts, relevant documents for verification and genuineness and nature of charitable activities. Before us the Ld. Counsel for the assessee has stated that the assessee trust is located in the remote area near Darjeeling and due to unrest in the local area, prevailing for a long time, it could not receive any communication nor was in position to furnish the details. Also the assessee was not served with the impugned order and was able to procure the same through RTI application and necessary correspondence of the same is placed on record. 4. ITA Nos.324 & 325/Kol/2022 AY 2017-18 Druk Jetavan Charitable Trust 6. We, therefore, under the given facts and circumstances of the case find merit in the contention of the ld. Counsel for the assessee and therefore, in the interest of justice and being fair to both the parties restore all the issues raised in the instant appeals pertaining to the registration u/s. 12AA as well as approval u/s. 80G of the Act to the ld. CIT-Exemptions for fresh adjudication and for which reasonable opportunity of being heard should be provided to the assessee. We also direct the assessee to file all necessary documentary evidence including financial statements and charitable activities carried out in support of its applications filed u/s. 12AA & 80G of the Act before the ld. CIT-E, who shall decide the issue(s) raised in the instant appeals afresh in accordance with law considering the submissions of the assessee. Thus, grounds raised by the assessee in both the appeals are allowed for statistical purpose. प रणामत: नधा रती क अपील (ITA No. 324 & 325/Kol/2022 for the A.Y 2017-18) सांि यक उ दे य से मंज ू र क जाती है। 7. In the result, both the appeals of assessee are allowed for statistical purpose. आदेश ख ु ले यायपीठ म दनांक 03 -11-2022 को उ घो षत। Order pronounced in the open court on 03 -11-2022 Sd/- Sd/- ( SANJAY GARG) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 03 -11-2022 **PP/SPS 5. ITA Nos.324 & 325/Kol/2022 AY 2017-18 Druk Jetavan Charitable Trust आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1.अपीलाथ /Appellant/: Druk JetavanCharitableTrust, Monastery, Tenzing Norkye Road, West Pond Dali, Darjeeling-734101, W.B 2. यथ /Respondent/: CIT (Exemption), Kolkata, 6 th Fl., 10B Middleton Row, Kolkata-700 071. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त- अपील / CIT (A) 5. वभागीय त न ध, आयकर अपील य अ धकरण कोलकाता / DR, ITAT, Kolkata 6.गाड फाइल/Guardfile. By order/आदेश से, /True Copy/ Assistant Registrar ITAT, Kolkata