M/s Catholic Womens League , Bangalore V. Commissioner of Income Tax (Exemptions) , Bangalore

ITA 3354/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1887 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 20-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V VASUDEVAN, VICE PRESIDNET AND SHRI B.R BASKARAN, ACCOUNTANT MEMBER ITA NO.3354/BANG/2018 ASSESSMENT YEAR : 2018-19 CATHOLIC WOMENS LEAGUE, P.B NO.584, ST. FRANCIS XAVIERS CATHEDRAL, KR WODEYAR NAGARA, FR. SERVANTON CIRCLE, CLEVELAND TOWN, BANGALORE. PAN AACTC 2695 K. VS. THE COMMISSIONER OF INCOME-TAX (EXEMPTION), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI NARENDRA KUMAR JAIN, ADVOCATE RESPONDENT BY : SHRI PRADEEP KUMAR, CIT DATE OF HEARING : 26.06.2019 DATE OF PRONOUNCEMENT : 26.06.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 23/10/2018 PASSED BY LD CIT(EXEMPTION), BENGALURU R EJECTING THE APPLICATION FILED BY THE ASSESSEE SEEKING RECOGNITI ON U/S 80G OF THE INCOME-TAX ACT 1961 (THE ACT). ITA NO.3354/BANG/2018 PAGE 2 OF 4 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD . WE NOTICED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S 12AA OF THE ACT, VIDE ORDER DATED 18/9/2018 AND PASSED BY LD CIT(E) IN ORDER NO.ITBA/EXM/S/12AA/2018-19/1012303266(1). 3. AFTER RECEIPT OF REGISTRATION U/S 12AA OF THE AC T, THE ASSESSEE TRUST FILED AN APPLICATION BEFORE LD CIT(E) SEEKING RECOG NITION U/S 80G OF THE ACT. HOWEVER, THE LD CIT(E) REJECTED THE APPLICATION BY OBSERVING THAT THE ASSESSEE TRUST HAS NOT CARRIED OUT SUFFICIENT ACTIV ITIES AND HENCE, IN THE ABSENCE OF THE SAME, IT IS NOT POSSIBLE FOR HIM TO VERIFY THE GENUINENESS OF OBJECTS AND THE ACTIVITIES OF TRUST. ACCORDINGLY H E REJECTED THE APPLICATION FILED BY THE ASSESSEE. 4. BEFORE US, THE LD A.R SUBMITTED THAT THE ASSESSE E IS PROVIDING SCHOLARSHIPS TO POOR STUDENTS FOR THE PAST SEVERAL YEARS. IN SUPPORT OF THE SAME, HE INVITED OUR ATTENTION TO THE COPIES OF FIN ANCIAL STATEMENTS FOR FINANCIAL YEARS 2015-16 TO 2017-18 IN THE PAPER BOO K. ACCORDINGLY HE SUBMITTED THAT THE LD CIT(E) HAS NOT EXAMINED THESE DETAILS AND HENCE HE WAS NOT JUSTIFIED IN OBSERVING THAT THE ASSESSEE HA S NOT CARRIED OUT SUFFICIENT ACTIVITIES. ON THE CONTRARY, THE LD D.R SUPPORTED THE ORDER PASSED BY LD CIT(E). 5. WE HAVE ALREADY NOTICED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S 12AA OF THE ACT. PROVISIONS OF SE C. 80G(5)(IV) STATE THAT THE REGISTRATION U/S 80G IS GRANTED BY THE COMMISSIONER IN ACCORDANCE WITH THE RULES MADE IN THIS BEHALF. RULE 11AA PRESCRIBES TH E PROCEDURE TO BE FOLLOWED FOR GRANTING RECOGNITION U/S 80G OF THE AC T. WE NOTICED THAT THE LD CIT(A) HAS NOT REFERRED TO PROVISIONS OF RULE 11AA OF THE I T RULES IN ORDER TO EXAMINE THE APPLICATION FILED BY THE ASSESSEE. FURTHER, WE NOTICE THAT ITA NO.3354/BANG/2018 PAGE 3 OF 4 THE ASSESSEE HAS FURNISHED THE DETAILS OF SCHOLARSH IP GIVEN BY IT IN FINANCIAL YEAR 2017-18 IN THE PAPER BOOK AND HAS AL SO FURNISHED FINANCIAL STATEMENTS OF EARLIER YEARS IN ORDER TO SHOW THAT S UCH KIND OF SCHOLARSHIPS ARE GIVEN YEAR AFTER YEAR. WE NOTICE THAT THE LD C IT(A) HAS NOT EXAMINED THOSE DETAILS. HENCE, WE ARE OF THE VIEW THAT THE REASONS CITED BY THE LD CIT(A) FOR REJECTING THE APPLICATION OF THE ASSESSE E IS NOT IN ACCORDANCE WITH RULE 11AA OF THE ACT. ACCORDINGLY WE SET ASID E THE ORDER PASSED BY THE LD CIT(E) AND RESTORE THE SAME TO HIS FILE FOR EXAMINING THE APPLICATION OF THE ASSESSEE AFRESH, AFTER AFFORDING ADEQUATE OP PORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH JUNE, 2019. SD/ - (N.V VASUDEVAN) VICE PRESIDENT SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 26 TH JUNE, 2019. /VMS / COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3 . THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER A SST. REGISTRAR, ITAT, BANGALORE. ITA NO.3354/BANG/2018 PAGE 4 OF 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..