Gramya Vikas Sangathan, Nabarangpur V. CIT (Exemptions), Hyderabad

ITA 38/CTK/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4802 (ITAT-CUTTACK)
• Duration Of Justice: 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 28-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Benefit of exemption
• Section: 80G

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM . / ITA NO. 38 /CTK/201 9 ( / ASSESSMENT YEAR : NA ) GRAMYA VIKAS SANGATHAN, AT - TOTA SAHI, PO /DIST - NABARANGAPUR, ODISHA - 764059 VS. CIT(EXEMPTIONS), HYDERABAD - 500004 ./ PANNO. : A A ATG 7179 A ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI G.NAIK/RAJAT K AR, ADV OC ATES /REV ENUE BY : SHRI S.M.KESHKAMAT, CITDR / DATE OF HEARING : 0 6 / 1 1 /2019 / DATE OF PRONOUNCEMENT : 08 / 1 1 /2019 / O R D E R PER L.P.SAHU , A M : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONE R OF INCOME TAX ( EXEMPTIONS ), HYDERABAD , DATED 28.12.2018 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS WITH REGARD TO REJECTION OF APPLICATION FILED BY THE ASSESSEE FOR REGISTRATION U/S. 80G (5)(VI) OF THE ACT, 1961. 3. THE ASSESSEE FILED AN APPLICATION IN FORM 10G WHICH WAS REJECTED BY THE CIT(E) HOLDING THAT ASSESSEE HAS NOT CARRIED OUT ANY CHARITABLE ITA NO. 38 /CTK/201 9 2 ACTIVITIES AND , THEREFORE, THE ASSESSEE IS NOT ELIGIBLE FOR THE SAME AND REJECTED THE APPLICATION FOR APPROVAL U/S.80G(5)(VI) OF THE ACT. 4. LD. AR BEFORE US SUBMITTED THAT IRRESPECTIVE O F THE FACT THAT THE ASSESSEE HAS FULFILLED THE CONDITIONS LAID DOWN IN CLAUSES (I) TO (V) OF SUB - SECTION (5) OF SECTION 80G OF THE ACT, THE CIT(E) HAS ERRED IN OBSERVING THAT THE ASSESSEE HAS NOT CARRIED OUT ANY CHARITABLE ACTIVITIES . T O SUBSTANTIATE THE A CTIVITIES , THE ASSESSEE HAS FILED THE PAPER BOOK CONTAINING PAGES 1 TO 235 AND PRAYED FOR GRANT OF APPROVAL U/S.80G(5)(VI) OF THE ACT FOR EXEMPTION. 5 . CONTRA, LD. DR SUBMITTED THE ORDER OF CIT(EXEMPTION) . 6 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED T HE MATERIALS AVAILABLE ON RECORD. THE SOLE DISPUTED ISSUE IS WITH RESPECT TO THE REJECTION OF APPLICATION FOR APPROVAL U/S.80G(5)(VI) OF THE ACT. LD. AR DURING THE COURSE OF HEARING DREW OUR ATTENTION TO THE AUDIT REPORTS WITH AUDITED FINANCIAL STATEMENTS AND ALSO DREW OUR ATTENTION TO THE BYELAWS OF THE TRUST WHICH ARE CHARITABLE IN NATURE FOR THE WELFARE CHILDREN, WELFARE OF THE AGED AND DEVELOPMENT OF SC & ST AND OTHER BACKWARD CASTE AND MINORITY COMMUNITY . WE FOUND THAT THERE IS NO DISPUTE IN RESPECT OF MAINTENANCE OF THE BOOKS OF ACCOUNTS AND THE ACTIVITIES CARRIED OUT BY THE ASSESSEE BUT THE FACT THAT THE CIT(E) HAS REJECTED THE APPLICATION BY MENTIONING THAT CHARITABLE ACTIVITIES CONDUCTED BY THE ASSESSEE IS NOT TO THE SATISFACTION AND THE ASSESSEE IS ITA NO. 38 /CTK/201 9 3 ACTING AS A CONTRACTOR FOR IMPLEMENTATION OF THE WORK ENTRUSTED BY A GRANTING AGENCY . WE CONSIDERING THE OBSERVATION OF THE CIT(E) AND ALSO SUBMISSIONS OF THE ASSESSEE ALONG WITH FINANCIAL STATEMENTS FILING IN THE PAPER BOOK , ARE OF THE OPINION THAT THE LD. CIT(E) HAS TO CONSIDER TH E PROVISIONS OF LAW OR THERE IS ANY VIOLATION IN RESPECT OF THE PROVISIONS DUE TO ANY ACTIVITY, WHICH IS NOT IN LEGALITY. THE ASSESSEE , DURING THE COURSE OF HEARING, HAS FILED THE ASSESSMENT ORDER PASSED U/S.143(3) OF THE ACT BY THE AO FOR A.Y.2016 - 2017, DATED 31.10.2018 IN WHICH THE AO HAS HIMSELF GIVE N BENEFIT OF EXEMPTION U/S.11(1)(A) OF THE I.T.ACT, 1961. THEREFORE, WE ARE OF THE VIEW THAT THE MATTER NEEDS FURTHER VERIFICATION AND EXAMINATION ON THE PART OF CIT(E) TO THE DOCUMENTS FILED IN THE FORM OF PAPER BOOK BEFORE US BY THE ASSESSEE . ACCORDINGLY, WE DIRECT THE CIT(E) TO VERIFY AND EXAMINE THE BYE - LAWS WITH THE FINANCIAL STATEMENTS AND PASS ORDER ACCORDINGLY. NEEDLESS TO SAY, REASONABLE OPPORTUNITY OF BEING HEARD SHALL BE GIVEN TO THE ASSESSEE. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICA L PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 08 /1 1 /2019. S D/ - ( C.M.GARG ) S D/ - (L.P.SAHU) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK; DATED 08 / 11 /201 9 PRAKASH KUMAR MISHRA, SR.P. S. ITA NO. 38 /CTK/201 9 4 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) ITAT CUTTACK BENCH, CUTTACK 1. / THE APPELLANT - GRAMYA VIKAS SANGATHAN, AT - TOTA SAHI, PO/DIST - NABARANGAPUR, ODISHA - 764059 2. / THE RESPONDENT - CIT(EXEMPTIONS), HYDERABAD - 500004 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//