Lions Club of Cuttack Greater Charitable Trust, Cuttack V. CIT(Exemptions), Cuttack

ITA 336/CTK/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9526 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 27-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIYUSH KOLHE
• Assessee Lawyers: ANIL AGARWALLA
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Additional evidence

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM . / ITA NO. 336 /CTK/201 8 ( / ASSESSMENT YEAR : 2018 - 2019 ) LIONS CLUB OF CUTTACK GREATER CH ARITABLE TRUST, C/O GOYALKA COMMERCIAL , JHOLA SAHI, CUTTACK - 753001 VS. CIT(EXEMPTION), CUTTACK ./ PAN NO. : A A BT L 4267 B ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI ANIL AGARWALLA , ADVOCATE /REVENUE BY : SHRI PIYUSH KOLHE , CIT - DR / DATE OF HEARING : 19 / 1 2 /2019 / DATE OF PRONOUNCEMENT : 02 / 01 /20 20 / O R D E R PER L.P.SAHU , A M : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(E), HYDERABAD, DATED 31.07.2017 . 2. AT THE OUTSET, ON PERUSAL OF THE APPEAL RECORD OF THE TRIBUNAL, WE FIND THAT INITIALLY AT THE TIME OF INSTITUTION OF APPEAL , THE ASSESSEE HAS AGITATED THE INACTION ON THE PART OF THE CIT(E) IN NOT DECIDING THE APPLICATION OF THE ASSESSEE FILED FOR REGISTRATION U/S.12AA OF THE ACT. THEREAFTER VIDE LETTER DATED 15.11.2019, THE ASSESSEE FILED AN APPLICATION FOR TAKING ADDITIONAL GROUNDS AND ADDITIONAL EVIDENCE ON RECORD ENCLOSING THE IMPUGNED ORDER PASSED BY TH E CIT(E) REJECTING ITA NO. 336 /CTK/201 8 2 THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION U/S.12AA OF THE ACT. CONSIDERING THE ABOVE FACTS AND THE DECISION OF THE HONBLE SUPREME COURT IN NATIONAL THERMAL POWER CO. LTD.(NTPC LTD.) VS. COMMISSIONER OF INCOME TAX, 229 IT R 383, THE ADDITIONAL EVIDENCE S FILED BY THE ASSESSEE ARE TAKEN ON RECORD AND THE APPEAL IS HEARD FINALLY. 3 . THE SOLE ISSUE INVOLVED IN THE PRESENT APPEAL OF THE ASSESSEE IS WITH RESPECT TO REJECTION OF APPLICATION FOR GRANT OF REGISTRATION U/S.12AA OF TH E ACT. 4 . BRI EF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CHARITABLE TRUST AND FILED AN APPLICATION IN FORM NO.10A DATED 03.01.2017 SEEKING REGISTRATION U/S.12AA OF THE ACT, HOWEVER, THE CIT(E) REJECTED THE APPLICATION FOR GRANT OF REGISTRATION ON THE G ROUND THAT THE TRUST HAS NOT INCORPORATED THE CLAUSES LIKE DISSOLUTION CLAUSE, IRREVOCABILITY CLAUSE, UTILIZATION CLAUSE, ACCOUNTS CLAUSE AND INVESTMENT CLAUSE IN TRUST DEED. 5 . AGGRIEVED BY THE ORDER OF CIT(E), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 6 . LD. AR BEFORE US SUBMITTED THAT THE CIT(E) HAS VIOLATED THE PRINCIPLE OF NATURAL JUSTICE BY COMMUNICATING US THE STATUS OF THE APPLICATION FILED FOR REGISTRATION U/S.12 A A OF THE ACT VERY LATELY I.E. AFTER 27 MONTHS FROM THE DATE OF THE DISPO SAL. IT WAS ALSO CONTENDED BY THE LD. AR THAT THE CIT(E) HAS IGNORED THE FACT THAT THE CLAUSES IN THE TRUST DEED WHICH HE DID NOT FIND, ARE VERY MUCH AVAILABLE IN THE TRUST ITA NO. 336 /CTK/201 8 3 DEED. EVEN THE CIT(E) HAS NOT PROVIDED ANY REASONABLE OPPORTUNITY TO THE ASSESSEE O F BEING HEARD AS PROVIDED IN THE PROVISO TO SECTION 12AA(1) OF THE ACT, 1961. H OWEVER, WITHOUT CONSIDERING THE SAME, THE CIT(E) REJECTED THE APPLICATION FOR GRANT OF REGISTRATION U/S.12A A OF THE ACT. THEREFORE, LD. AR SUBMITTED THAT THE CIT(E) MAY KINDLY B E DIRECTED TO GRANT REGISTRATION U/S.12A A OF THE ACT. 7 . ON THE OTHER HAND, LD. DR BEFORE US SUBMITTED THAT THE CIT(E) HAS REJECTED THE REGISTRATION APPLICATION U/S.12A A OF THE ACT AS THE ASSESSEE HAS NOT COMPLIED WITH THE CONDITIONS REQUIRED FOR REGISTRAT ION AND, THEREFORE, ASSESSEES APPEAL SHOULD BE DISMISSED. 8 . WE HAVE HEARD SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY PERUSED THE MATERIAL ON RECORD. THE SOLE DISPUTE IS WITH RESPECT TO REJECTION OF REGISTRATION U/S.12AA OF THE ACT. ON PERUSAL OF THE ORDER OF CIT(E), WE FIND THAT THE CIT(E) REJECTED THE APPLICATION FOR GRANT OF REGISTRATION ON THE GROUND THAT THE TRUST HAS NOT INCORPORATED THE CLAUSES LIKE DISSOLUTION CLAUSE, IRREVOCABILITY CLAUSE, UTILIZATION CLAUSE, ACCOUNTS CLAUSE AND INVESTMENT CLA USE IN TRUST DEED. LD. AR BEFORE US HAS FILED TRUST DEED IN THE FORM OF ADDITIONAL EVIDENCE AND SUBMITTED THAT ALL THE CLAUSES AS DISPUTED BY THE CIT(E) ARE VERY MUCH AVAILABLE IN THE TRUST DEED. ACCORDINGLY, IN THE INTEREST OF SUBSTANTIAL JUSTICE, WE REST ORE THE APPEAL OF THE ASSESSEE TO THE FILE OF CIT(E) TO PASS ORDER AFTER DUE VERIFICATION OF THE FACTS AS WELL AS THE TRUST DEED OF THE ITA NO. 336 /CTK/201 8 4 ASSESSEE TRUST AND THE ASSESSEE SHALL BE PROVIDED A REASONABLE OPPORTUNITY OF BEING HEARD. IF THE CIT(E) SATISFIES THAT THE ASSESSEE TRUST HAS FULFILLED THE REQUIRED CRITERIA FOR REGISTRATION U/S.12AA OF THE ACT AND SUBSTANTIATE ITS CLAIM, THE CIT(E) IS DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE - TRUST. WE ORDER ACCORDINGLY. T HUS, THE GROUND OF APPEAL OF ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. 9 . IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 02 / 01 /20 20 . SD/ - ( C.M.GARG ) SD/ - (L.P.SAHU) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK; DATED 02 / 01 /20 20 PRAKASH KUMAR MISHRA, SR.P.S. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) ITAT CUTTACK BENCH, CUTTACK 1. / THE APPELLANT - LIONS CLUB OF C UTTACK GREATER CHARITABLE TRUST, C/O GOYALKA COMMERCIAL, JHOLA SAHI, CUTTACK - 753001 2. / THE RESPONDENT - CIT(EXEMPTION), CUTTACK 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//