Sri Devraj Urs Educational Trust for Backward Classes(R) , Kolar V. Income Tax Officer (TDS) Ward-2(2), Bangalore

ITA 3307/BANG/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1919 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 13-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Assessment record; TDS
• Section: 201(1); 201; 13; 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES : B, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNTANT MEMBER AND SMT.BEENA PILLAI, JUDIC I AL MEMBER ITA NO S . 3307 TO 3312 (BANG)/201 8 (ASSESSM E NT YEAR S : 201 3 - 14 TO 2014 - 15 ) SHRI DEVARAJ URS EDUCATIONAL TRUST FOR BACKWARD CLASSES, TAMAKA, KOLAR - 563 101 PAN NO. A AA TS5344P APPELLANT VS THE INCOME TAX OFFICER, WARD - 2(2), BANGALORE RESPONDENT APPELLANT BY : SHRI S.RAMASUBRAMANIAN, CA REVENUE BY : SHRI GURUPRASAD, ADDL. CIT DATE OF HEARING : 2 1 - 10 - 2019 DATE OF PRONOUNCEMENT : 23 - 10 - 2019 O R D E R PER BEN CH : A T THE OUTSET , LD.AR SUBMITTED THAT ISSUES ARISE OUT OF ORDE RS DATED 09/10/18 PASSED BY LD. CIT (A) - 13, BANGALORE FOR ASSESSMENT YEARS 2013 - 14 AND 2014 - 15. IT HAS BEEN SUBMITTED THAT THESE ORDERS ARE DIRECTED AGAINST ORDERS PASSED UNDER SECTION 201(1) AND 201 (1A) FOR YEARS UN DER CONSIDERATION. 2. BRIEF FACTS OF THE CASE ARE AS UNDER: A SSESSEE IS A TRUST RUNNING M EDICAL COLLEGE IN KOLAR. SURVEY UNDER SECTION 13 3A OF THE A CT WAS CONDUCTED AT THE PREMISES , WHEREIN ITA NO S . 3307 TO 3312( B)/201 8 PAGE 2 OF 3 DOCUMENTS WERE FOUND ESTABLISHING ASSESSEE HAVING RECEIVED DONATIONS FROM ITS EMPLOYEES ON WHICH BENEFI T OF DEDUCTION UNDER SECTION 80 G WAS GIVEN. IT HAS BEEN OBSERVED BY AUTHORITIES BELOW THAT THREE EMPLOYEES HAVE G IVEN DONATIONS UNDER SECTION 80 G TO THE TR UST WERE SUMMONED UNDER SECTION 131 OF T HE IT ACT, 1961 AND WERE EXAMINED BY AO. BASED UPON THE STATEMENTS OF THESE EMPLOYEES AND ALSO VERIFYING THE DOCUMENTS/DETAILS FILED BY ASSESSEE WAS TREATED TO BE IN DEFAULT AND ORDER S UNDER SECTION 201 (1) AND 201 (1A) WAS PASSED FOR YEARS UNDER CONSIDERATION. 3. AT THE OUTSET , IN ALL THE APPEALS FILED BEFORE US , ASSESSEE ALLEGED LEGAL ISSUE OF GROSS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE , AS NO NOTICE WAS ISSUED BEFORE P ASSING ORDERS UNDER SECTION 201 (1) AND 201 (1A) OF THE ACT BY LD.AO. LD. AR SUBMITTED THIS ISSUE WAS RAISED BEFORE LD.CIT(A), HOWEVER IT HAS NOT BEEN ADJUDICATED. HE ALSO SUBMITTED THAT COPIES OF EVIDENC ES RELIED UPON BY LD.AO TO COMPUTE INTERES T UNDER SECTION 201(1) AND 201 (1A) OF THE ACT HAS NOT BEEN PROVIDED TO ASSESSEE. 4. UNDER SUCH CIRCUMSTANCES , IN OUR CONSIDERED OPINION , THERE HAS BEEN GROSS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. WE THUS , DIRECT LD.CIT (A) TO CALL FOR ASSESSMENT RECORDS VERIFY THE DETAILS REGARDING LEGAL PLEA RAISED BY ASSESSEE IN RESPECT OF NON - IS SUANCE OF SHOW CAUSE NOTICE UNDER SECTION 201 ( 1) AND 201 (1A) OF THE ACT. 5. ACCORDINGLY, WE SET A SIDE ALL APPEALS BACK TO LD.CIT (A) TO DECIDE LEGAL GROUND RAISED AS NOTED IN PARA - 4 ABOVE. IN THE EVENT , ASSESSEE FAILS ON THE LEGAL PLEA RAISED, LD. CIT (A) I S DIRECTED TO PASS A FRESH ORDER ON MERITS ALSO HAVING REGARD TO PROVISIONS OF ITA NO S . 3307 TO 3312( B)/201 8 PAGE 3 OF 3 THE ACT , BECAUSE DECISION ON MERIT SHOULD BE AFTER DECIDING THE LEGAL ISSUE. 6. IN THE RESULT APPEAL IS FILED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT 23 - 10 - 2019 SD/ - SD/ - (A.K.GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICI AL MEMBER DATED: 23 - 10 - 2019 *AM COPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.GUARD FILE BY ORDER ASSTT.REGISTRAR