Peoples Forum Foundation, Bhubaneswar V. CIT (Exemptions), Hyderabad

ITA 331/CTK/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8565 (ITAT-CUTTACK)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 18-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K GAUTAM
• Assessee Lawyers: S K AGRAWALLA
• Keywords: Opportunity of being heard
• Section: 205

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM . / ITA NO. 331 /CTK/20 1 9 ( / ASSESSMENT YEAR : NA ) PEOPLES FORUM FOUNDATION, HIG - 103, DHA RMA VIHAR, KHANDAGIRI, BHUBANESWAR - 751030 VS. CIT(E), HYDERABAD PAN NO. : A A BTP 5882 A ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI S.K.AGRAWALLA, CA /REVENUE BY : SHRI M.K.GAUTAM, CIT - DR / DATE OF HEARING : 14 / 0 7 /20 20 / DATE OF PRONOUNCEMENT : 15 / 0 7 /20 20 / O R D E R PER L.P.SAHU , A M : TH E ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORDER OF CIT( E ) , HYDERABAD , DATED 29.08.2019 PASSED U/S.12AA(1) (B)(II) OF THE INCOME TAX ACT, 1961 DENYING THE REGISTRATION OF THE ASSESSEE - TRUST. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED AN APPLICATION IN FORM NO.10A SEEKING REGISTRATION U/S.12AA OF THE ACT ON 01.02.2019. DURING THE COURSE OF HEARING TH E CIT(E) THE ASSESSEE ISSUED NOTICE FOR COMPLIANCE IN CERTAIN POINTS FOR WHICH THE ASSESSEE FILED WRITTEN SUBMISSIONS, COPY OF THE WRITTEN SUBMISSIONS IS PLACED ON RECORD. THE CIT(E) ASKED THE ASSESSEE TO FILE AN AGREEMENT WITH THE DAV PUBLIC SCHOOL TO EST ABLISH THE DAV PUBLIC SCHOOL FOR PERMITTING IN THE NAME OF ITA NO. 331 /CTK/201 9 2 DAV PUBLIC SCHOOL. THE CIT(E) NOTED THAT THE AR OF THE ASSESSEE FILED A LETTER DATED 27.01.1995 WRITTEN BY THE REGIONAL DIRECTOR DR. AM PATNAIK OF PEOPLES FORUM AND HE OBSERVED THAT THE ASSESSEE T RUST HAS BEEN FORMED IN 2006 AND THE PERMISSION LETTER DATED IN 1995. THEREFORE, HE CONCLUDED THAT THERE IS NO PERMISSION TO THE ASSESSEE TO OPEN A SCHOOL AND HE ALSO NOTED AS UNDER : - THE ASSESSEE IN ITS SUBMISSION FILED A FORM - II ISSUED BY DISTRICT EDU CATION OFFICE. KHORDA ON 07.07.2018. HOWEVER, THE SAID FORM HAS BEEN ISSUED TO THE SECRETARY . DAV PUBLIC SCHOOL. AS MENTIONED EARLIER, ASSESSEE HAS FAILED TO ESTABLISH THAT IT HAS A PERMISSION FROM DAV PUBLIC SCHOOL TO RUN A SCHOOL. FROM THE FORM - LL. IT C ANNOT BE INFERRED THAT THE DAV PUBLIC SCHOOL . KHORDA IS RUN BV THE ASSESSEE TRUST. THE ONUS WAS ON ASSESSEE TO ESTABLISH THE SAME. THE ASSESSEE FAILED TO ESTABLISH( COPY OF FORM - II IS ENCLOSED HEREWITH). THUS, ASSESSEE COULD NOT ESTABLISH THAT IT IS RUNNIN G A SCHOOL. HE ALSO NOTICED THAT THE ASSESSEE TRUST HAS TAKEN UNSECURED LOAN OF RS.1,30,70,500/ - . ON THE ABOVE TWO GROUNDS THE CIT(E) DENIED FOR EXEMPTION AS CLAIMED BY THE ASSESSEE TRUST. 3. LD. AR FILED A PAPER BOOK CONTAINING PAGES 1 TO 78 AND SUBMITT ED THAT THE ASSESSEE IS RUNNING A SCHOOL AND HE DREW OUR ATTENTION TO THE FORM NO.2 ISSUED BY THE DISTRICT EDUCATION OFFICER, KHORDA, DATED 04.04.2018, COPY OF WHICH IS PLACED AT PAGE NO.69 OF THE PAPER BOOK. HE ALSO SUBMITTED THAT THE CIT(E) HAS WRONGLY M ENTIONED THAT THE PERMISSION LETTER IS DATED IN 1995. HE FURTHER SUBMITTED THAT THE SOCIETY HAS NOT MISUSED THE SURPLUS FUNDS FOR ANY OTHER ACTIVITY WHICH ARE OTHER THAN THE OBJECTS OF THE SOCIETY. THE OBJECTS OF THE SOCIETY IS ITA NO. 331 /CTK/201 9 3 CHARITABLE IN NATURE, THEREF ORE, IT IS FIT FOR REGISTRATION AS PER THE INCOME TAX ACT AS PROVIDED U/S.12A OF THE ACT. IN SUPPORT OF HIS ARGUMENTS, HE RELIED ON THE FOLLOWING JUDGMENTS : - I) CIT(EXEMPTION) VS. REHAM FOUNDATION, (2019) 418 ITR 205 (ALL.)(FB); II) ANANDA SOCIAL & EDUCAT IONAL TRUST VS. CIT &ANR. (2020) 4 NYPCTR 159 (SC); AND III) CIT(EXEMPTIONS) VS. DEVINE SHIKSHA SAMITI (2020) 4 NYPCTR 131 (MP) 4. ON THE OTHER HAND, LD.DR RELIED ON THE OTHER OF CIT(E) HAS RIGHTLY DENI ED THE REGISTRATION AFTER CONSIDERING THE SUBMISSION S OF THE ASSESSEE, THEREFORE, THE ORDER OF CIT(E) SHOULD BE RESTORED. 5. AFTER HEARING BOTH THE SIDES AND PERUSING THE ENTIRE MATERIAL AVAILABLE ON RECORD AND CASE LAWS SUBMITTED BY THE ASSESSEE, WE NOTICE FROM THE PAPER BOOK FILED BY THE ASSESSEE THAT HE HAS SUBMITTED AUDIT REPORT OF THE INSTITUTION. WE ALSO NOTED FROM FORM NO.2 COPY OF WHICH IS PLACED AT PAGE 69 OF THE PAPER BOOK THAT THE LETTER HAS BEEN ISSUED BY THE DISTRICT EDUCATION OFFICER, KHORDA IS DATED 04.04.2018 ON CERTAIN TERMS AND CONDITIONS S TIPULATED THEREIN. THEREFORE, IT IS CLEAR THAT THE SOCIETY IS RUNNING A SCHOOL. ACCORDINGLY, IN THE INTEREST OF JUSTICE, WE RESTORE THE APPEAL OF THE ASSESSEE TO THE FILE OF CIT(E) TO EXAMINE AS TO WHETHER THE ACTIVITIES OF THE TRUST ARE GENUINE AND WITHI N THE OBJECTS OF THE SOCIETY. IF THE CIT(E) FINDS THAT THE ACTIVITIES OF THE ASSESSEE TRUST ARE GENUINE , WITHIN THE OBJECTS OF THE SOCIETY TRUST AND CHARITABLE IN NATURE, THE REGISTRATION U/S.12A OF THE ACT AS CLAIMED BY THE ASSESSEE ITA NO. 331 /CTK/201 9 4 DESERVES TO BE GRANTED . THE ASSESSEE SHALL BE GIVEN REASONABLE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE WITH THE CIT(E) FOR EARLY DISPOSAL OF THE CASE. WE ORDER ACCORDINGLY. 6 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURP OSES . ORDER PRONOUNCED IN THE OPEN COURT ON 15 / 0 7 / 20 20 . SD/ - ( C.M.GARG ) SD/ - (L.P.SAHU) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 15 / 0 7 /20 20 PRAKASH KUMAR MIS HRA, SR.P.S. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , /ITAT, CUTTACK 1. / THE APPELLANT - PEOPLES FORUM FOUNDATION, HIG - 103, DHARMA VIHAR, KHANDAGIRI, BHUBANESWAR - 751030 2. / THE RESPONDENT - CIT(E), HYDERABAD 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//