Bhagwandas Chatrubhuj Saraf, Berhampur V. CIT(Exemptions), Hyderabad

ITA 330/CTK/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5341 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 15-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHAPATRA
• Assessee Lawyers: A K PADHY
• Keywords: Reasonable cause
• Section: 12AA

Judgement Text

1 ITA NO. 330/CTK/2015 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 330/CTK/2015 BHAGWANDAS CHATURBHUJ SARAF DHARMASALA, ASKA ROAD, BERHAMPUR. VS. THE COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD, CAMP AT BHUBANESWAR. PAN/GIR NO. AAATB 1231 G (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI A.K.PADHY, AR REVENUE BY : SHRI A.K.MOHAPATRA, CIT DR DATE OF HEARING : 07 /11 / 2017 DATE OF PRONOUNCEMENT : 8 /11 / 2017 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD DATED 22.4.2015. 2. THE APPEAL FILED BY THE ASSESSEE SOCIETY IS BARRED BY LIMITATION BY 14 DAYS. THE ASSESSEE HAS FILED CONDONATION PE TITION SUPPORTED BY AFFIDAVIT FOR CONDONING THE DELAY IN FILING THE APPEAL. AFTER GOING THROUGH THE CONDONATION PETITION, WE FIND THAT THE ASSESSEE HAD REASONABLE CAUSE FOR NOT FILING THE APPEAL WITHIN THE STIPULATED TIME. LD D.R. DID NOT HAVE ANY OBJECTION FOR CONDONING THE DELAY. WE, THEREFORE, CONDONE THE DELAY OF 14 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL AND ADMIT THE APPEAL FOR HEARING. 2 ITA NO. 330/CTK/2015 3 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE ORDER PASSED U/S 12AA OF THE INCOME TAX ACT, 1961 BY THE COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD, CAMP OFFICE AT BHUBANESWAR FOR THE APPELLANT IS ILLEGAL AND VITIATED IN THE LAW. 2. THAT THE REJECTION FOR GRANT OF REGISTRATION U/SL2AA ON THE BASIS OF IN ABSENCE OF ANY COMPLIANCE FROM THE APPELLANT TRUST, SINCE ITS EXISTENCE, O BJECTS ETC. COULD NOT BE VERIFIED IS ARBITRARY, ILLEGAL AND UNJUSTIFIED ON LAW WITHOUT GIVING SUFFICIENT OPPORTUNITY TO THE APPELLANT TO SUBMITS THE DOCUMENTS AND THE AUDITED STATEMENT OF ACCOUNTS TO THE PARTICULAR FACTS AND CIRCUMSTANCE OF THE CASE. 3. THAT THE REJECTION OF CONDO NATION OF DELAY PETITION ALSO WITHOUT ANY SPEAKING ORDER FOR REGISTRATION OF APPELLANT TRUST IN THE PROVISIONS OF SECTION 12AA OF THE INCOME TAX ACT, 1961 IS ILLEGAL, ARBITRARY AND UNJUSTIFIED IN LAW TO PARTICULAR FACTS AND CIRC UMSTANCES OF CASE. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF PPEALS AND PUT - FORTH EVIDENCE AND ARGUE OTHER GROUNDS DURING THE COURSE OF HEARING. 4 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE SOCIETY FILED AN APPLICATION IN FORM NO.10A ON 28.10.2014 BEFORE THE COMMISSIONER OF INCOME TAX, BHUBANESWAR SEEKING REGISTRATION U/S.12AA OF THE INCOME TAX ACT, 1961. CONSEQUENT UPON THE CBDT S NOTIFICAT ION NO.65/2014 DATED 13.11.2014 U/S120(1) & (2) OF THE INCOME TAX ACT, 1961, THE JURISDICTION FOR GRANT OF REGISTRATION WAS TRANSFERRED TO COMMISSIONER OF INCOME TAX (EXEMPTION) HYDERABAD. THEREAFTER, A NOTICE WAS ISSUED TO THE ASSESSEE SOCIETY ON 30.3.2015 BY THE COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD FIXING THE HEARING AT BHUBANESWAR ON 22.4.2015 AND REQUESTING TO PRODUCE ITS ORIGINAL MEMORANDUM OF ASSOCIATION FOR VERIFICATION AND TO FURNISH DETAILED REPLY ON SPECIFIC POINTS. SINCE NONE 3 ITA NO. 330/CTK/2015 APPEARED ON BEHALF OF THE ASSESSEE SOCIETY, THE COMMISSIONER OF INCOME TAX (EXEMPTION) REJECTED THE APPLICATION IN FORM NO.10A FILED BY THE ASSESSEE SOCIETY ON THE GROUND THAT IN AB SENCE OF ANY COMPLIANCE FROM THE APPLICANT SOCIETY, THE OBJECTS ETC , COULD NOT BE VERIFIED AND CONSEQUENTLY REFUSED TO GRANT REGISTRATION U/S.12AA OF THE ACT. 5 . BEING AGGRIEVED BY THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTION), THE ASSESSEE SOCIE TY IS IN APPEAL BEFORE US. 6. AT THE OUTSET, ID A.R. OF THE ASSESSEE SUBMITTED THAT THE COMMISSIONER OF INCOME TAX (EXEMPTION) HAS NOT ALLOWED SUFFICIENT OPPORTUNITY TO COMPLY WITH THE NOTICES AND FURNISH NECESSARY DOCUMENTS, AS CALLED FOR AND REJECTED THE APPLICATION FOR GRANT OF REGISTRATION U / S .12AA OF THE ACT. HE SUBMITTED THAT ONE MORE OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE SOCIETY TO REPRESENT ITS CASE BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTION). HE ALSO UNDERTAKES TO APPEAR BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTION) SUO - MOTO AN D FILE ALL NECESSARY DETAILS AND DOCUMENTS FOR GRANT OF REGISTRATION U / S .12AA OF THE ACT. 7. LD D.R. HAD NO OBJECTION TO THE ABOVE SUBMISSION OF ID A.R. OF THE ASSESSEE. 8 AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE ORDER OF THE COMMISSIO NER OF INCOME TAX (EXEMPTION), WE FIND THAT ONLY ONE DATE OF 4 ITA NO. 330/CTK/2015 HEARING WAS FIXED I.E. ON 22.4.2015 A ND THE APPLICATION IN FORM NO.10 A WAS REJECTED IN ABSENCE OF ANY COMPLIANCE FROM THE APPLICANT. BEFORE US, ID A.R. OF THE ASSESSEE HAS PRAYED THAT ONE MORE OPPORTUNITY BE PROVIDED TO PRESENT ITS CASE BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTION). IN VIEW OF ABOVE, WE SET ASIDE THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTION) AND RESTORE THE MATTER BACK TO HIS FILE FOR FRESH CONSIDERATION OF THE AP PLICATION FILED IN FORM NO. 10 A OF THE ACT. THE ASSESSEE SOCIETY IS DIRECTED TO APPEAR BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTION) WITHIN 30 DAYS FROM THE DATE OF THIS ORDER FOR FIXING THE DATE OF HEARING AND RENDER FULL CO - OPERATION TO THE COMMISSI ONER OF INCOME TAX (EXEMPTION) BY FILING ALL THE DETAILS AS AND WHEN CALLED UPON TO DO SO. WITH THESE DIRECTIONS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUN CED ON 8 /11 /2017. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 8 /11 /2017 B.K.PARIDA, SPS 5 ITA NO. 330/CTK/2015 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : BHAGWANDAS CHATURBHUJ SARAF DHARMASALA, ASKA ROAD, BERHAMPUR 2. THE RESPONDENT. THE COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD, CAMP AT BHUBANESWAR. 3 . DR, ITAT, CUTTACK 4 . GUARD FILE. //TRUE COPY//