Society of the Emmanuel Evangilical Interior, Narsapur V. The CIT, Hyderabad

ITA 37/VIZ/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6663 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 27-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Reasonable cause; Set aside
• Section: 12; 11; 80G; 12A; 201; 13; 20

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 3 7 /VIZ/ 201 7 ( /ASSESSMENT YEAR: 201 6 - 1 7 ) SOCIETY OF THE EMMANUEL EVANGILICAL INTERIOR CHURCH MINISTRIES SOCIAL ORGANIZATION D.NO.13 - 2 - 1, CHRISTIAN PETA NARSAPUR 534 275 WEST GODAVARI DISTRICT [ PAN : A ACFT3363M ] COMMISSIONER OF INCOME TAX (EXEMPTIONS) INCOME TAX OFFICER (HQRS) (EXEMPT), O/O CIT(E) HYDERABAD ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI , AR / RESPONDENT BY : S HRI R.GOVINDARAJAN , DR / DATE OF HEARING : 0 5 .0 9 .2017 / DATE OF PRONOUNCEMENT : 13. 0 9 .2017 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : 1. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE REJECTION OF APPLICATION, FOR APPROVAL U/S 80(G), SUB SECTION 5, CLAUSE ( VI ) OF I.T.ACT. 2 ITA NO. 3 7 /VIZ/201 7 SOCIETY OF THE EMMANUEL EVANGILICAL INTERIOR CHURCH MINISTRIES SOCIAL ORGANISATION , TEKKALI 2. THE ASSESSEE IS A SOCIETY ENJOYING THE REGISTRATION U/S 12A A OF I.T.ACT AND APPLIED IN FORM NO.10G ON 20.06.2016 SEEKING APPROVAL U/S 80G OF I.T.ACT. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD HAS ISSUED A LETTER FIXING THE CASE FOR HEARING ON 21.10.2016 AND IN RESPONSE TO THE NOTICE ISSUED, THE AR APP EARED AND SUBMITTED PARTIAL INFORMATION. SUBSEQUENTLY, THE CASE WAS FIXED FOR HEARING ON 16.11.2016 AND ON THE DATE OF HEARING THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT TO SUBMIT THE DETAILS. THEREFORE, LD.CIT (EXEMPTIONS) HELD THAT THE ASSESSEE IS NO T ELIGIBLE FOR APPROVAL UNDER C LAUSE (VI) OF SUB SECTION 5 OF SECTION 80G OF I.T.ACT AND ACCORDINGLY REJECTED THE APPLICATION FILED IN FORM NO.10G. AGGRIEVED BY THE ORDER OF THE LD.CIT (E) , THE ASSESSEE IS IN APPEAL BEFORE US. 3 . APPEARING FOR THE ASSE SSEE, THE LD.AR ARGUED THAT THE ASSESSEE HAS SUBMITTED THE ENTIRE INFORMATION SOUGHT BY THE LD.CIT(E) ON 21.10.2016 AND THE CASE WAS RE FIXED ON 16.11.2016. THE ASSESSEE COULD NOT APPEAR DUE TO THE COMMUNICATION GAP AND THE REASONS BEYOND ITS CONTROL. LD .AR ARGUED THAT TH E ASSESSEE IS MAINTAINING REGULAR BOOKS OF ACCOUNTS, FILED THE RETURN S OF I NCOME AND ENJOYING THE EXEMPTION U/S 3 ITA NO. 3 7 /VIZ/201 7 SOCIETY OF THE EMMANUEL EVANGILICAL INTERIOR CHURCH MINISTRIES SOCIAL ORGANISATION , TEKKALI 12A OF I.T.ACT. THE ASSESSEE IS A CHARITABLE SOCIETY AND CARRYING OU T PUBLIC CHARITABLE ACTIVITIES AND THE LD.CIT(E) SHOULD NOT HAVE REJECTED THE ASSESSEES APPLICATION M ERELY BECAUSE OF THE ASSESSEE COULD NOT APPEAR ONCE AND INSTEAD GIVEN ONE MORE OPPORTUNITY TO FURNISH THE REQUIRED INFORMATION. THEREFORE, LD.AR ARGUED THAT THE ORDER OF THE LD. CIT (E) BE SET ASIDE AND APPRO VAL MAY BE ACCORDED U/S 80G OF I.T. ACT. 3. ON THE OTHER HAND, LD. DR SUPPORTED THE ORDERS OF THE LD.CIT(E). 4 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL PLACED ON RECORD. THE ASSESSEE IS A PUBLIC CHARITABLE INSTITUTION ENJOYING EXEMP TIONS U/S 11 AND 12 OF I.T.ACT , APPLIED FOR APPROVAL U/S 80G OF I.T.ACT. THE ASSESSEE APPEARED ON 21.10.2016 AND FURNISHED THE DETAILS AND HE COULD NOT APPEAR ON THE NEXT DATE OF HEARING I.E. 16.11.2016. LD.AR SUBMITTED THAT THE ASSESSEE IS OPERATING AT FAR AWAY PLACE WHICH IS NEARLY 450KMS AWAY FROM HYDERABAD AND THERE WAS COM MUNICATION GAP WITH REGARD TO DATE OF HEARING , HENCE, THE ASSESSEE COULD NOT APPEAR BEFORE THE LD.CIT(E) ON 16/11/2016 . THE REASONING GIVEN BY 4 ITA NO. 3 7 /VIZ/201 7 SOCIETY OF THE EMMANUEL EVANGILICAL INTERIOR CHURCH MINISTRIES SOCIAL ORGANISATION , TEKKALI THE ASSESSEE REGARDING COMMUNICATION GAP AND THE DISTANCE INVOLVED IS A REASONABLE CAUSE FOR ASSESSEES INABILITY TO ATTEND THE HEARING. KEEPING IN VIEW OF THE DISTANCE THE LD.CIT SHOULD HAVE GIVE N REASONABLE OPPORTUNITIES AND SHOULD NOT HAVE REJECTED ASSESSEES APPLICATION, MERELY BECAUSE T HE ASSESSE E FAILED TO APPEAR ONCE. THEREFORE , WE ARE OF THE CONSIDERED OPINION THAT THE CASE SHOULD BE REMITTED BACK TO THE FILE OF THE LD.CIT(E) TO OFFER ONE MORE OPPORTUNITY TO THE ASSESSEE FOR SUBMIS SION OF NECESSARY DETAILS AND CONSIDER THE ASSESSEES APPLICATION FO R APPROVAL U/S 80G OF I.T.ACT ON MERITS. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD.CIT(E) AND REMIT THE MATTER BACK TO THE FILE OF THE CIT(E) TO RECONSIDER THE ISSUE ON MERITS AFTER GIVING OPPORTUNITY TO THE ASSE SSEE. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE . 5 ITA NO. 3 7 /VIZ/201 7 SOCIETY OF THE EMMANUEL EVANGILICAL INTERIOR CHURCH MINISTRIES SOCIAL ORGANISATION , TEKKALI T HE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 13 TH SEP 20 17 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 13 . 0 9 .2017 L. RAMA, SPS / COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT SOCIETY OF THE EMMANUEL EVANGILICAL INTERIOR CHURCH MINISTRIES SOCIAL ORGANIZATION, D.NO.13 - 2 - 1, CHRISTIAN PETA , NARSAPUR 534 275, WEST GODAVARI DISTRICT 2 . / THE RESPONDENT COMMISSIONER OF INCOME TAX (EXEMPTIONS) , INCOME TAX OFFICER (HQRS) (EXEMPT), O/O CIT(E), HYDERABAD 3 . THE ITO (EXEMPTIONS), RAJAHMUNDRY 4 . , , / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM