Delhi Rheumatology and Immunology Foundation, New Delhi V. DIT (E), New Delhi

ITA 3837/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58913 (ITAT-DELHI)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-03-2012
• Assessment Year: misc
• Appeal Filed On: 12-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Non compliance
• Section: 80G; 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : B : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NOS.3837 & 3838/DEL/2011 ASSESSMENT YEAR : - DELHI RHEUMATOLOGY AND IMMUNOLOGY FOUNDATION, C-2/252, JANAKPURI, NEW DELHI. PAN : AABTD4939N VS. DIT (E), 3 RD FLOOR, AAYAKAR BHAWAN, DISTRICT CENTRE, LAXMI NAGAR, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.S. SINGHVI, CA REVENUE BY : SHRI ALOK SINGH, SR.DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER BOTH THESE APPEALS ARE FILED BY THE ASSESSEE AND THEY AR E DIRECTED AGAINST THE ORDER DATED 28 TH JUNE, 2010 PASSED BY THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) [DIT (E)], NEW DELHI U/S 1 2AA(1)(B) READ WITH SECTION 12A OF THE IT ACT, 1961 VIDE WHICH THE APPLICATIONS FILED BY THE ASSESSEE FOR REGISTRATION U/S 12A(A) AS WELL AS FOR SEEKING EXEMPTION U/S 80G HAVE BEEN REJECTED. THE GROUNDS OF APPEAL IN BOTH THE APPEALS READ AS UNDER:- ITA NO.3837/DEL/2011 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE DIT (E) WAS NOT JUSTIFIED IN NOT ACCEPTING CLAIM FOR ISSUE OF CERTIFICATE U/S 80G. 2. THAT REJECTION ORDER WAS PASSED AS A CONSEQUENCE O F ORDER U/S 12A (A) OF THE INCOME TAX ACT, 1961 AND THE APPELL ANT ITA NOS.3837 & 3838/DEL/2011 2 HAVING FILED THE APPEAL AGAINST THE SAID ORDER, THE CL AIM OF EXEMPTION U/S 80G IS TO BE DECIDED IN ACCORDANCE WITH THE ISSUE OF REGISTRATION U/S 12A (A). 3. THAT ORDER PASSED BY THE DIT (E) IS NOT SUSTAINABLE ON FACTS AND UNDER THE LAW. ITA NO.3838/DEL/2011 1(I) . THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE DIT (E) WAS NOT JUSTIFIED IN NOT ACCEPTING CLAIM OF REGISTRA TION U/S 12AA(1)(B) OF THE INCOME TAX ACT, 1961. (II) THAT THIS IS A CASE OF GENUINE TRUST AND ACTIVITIES BEING IN ACCORDANCE WITH PROVISIONS OF SEC. 2 (15) OF THE INCO ME TAX ACT, 1961, THERE IS NO GROUND OR BASIS FOR REJECTION OF CL AIM OF REGISTRATION. 2(I) THAT THE OBSERVATION ABOUT NON COMPLIANCE OF NOTICE DTD. 14.3.11 AND 20.5.11 ARE NOT JUSTIFIED AS THERE HAS BEE N NO SERVICE OF ANY OF THESE NOTICES. (II) THAT THERE IS NO REFERENCE TO SERVICE OF NOTICE EV EN IN THE IMPUGNED ORDER PASSED BY DIT (E). 3. THAT ORDER PASSED BY THE DIT (E) IS NOT SUSTAINABLE ON FACTS AND UNDER THE LAW. 2. IN THE IMPUGNED ORDER LD. DIT (E) HAS MENTIONED T HAT A LETTER DATED 14 TH MARCH, 2011 WAS ISSUED TO THE ASSESSEE REQUIRING TO SUBMI T VARIOUS EXPLANATIONS/DOCUMENTS TO CONSIDER THE CLAIM OF THE ASSESSEE FOR REGISTRATION U/S 12A AS WELL AS APPROVAL U/S 80G. I T IS FURTHER MENTIONED THAT ON THE GIVEN DATE NOBODY ATTENDED ON BEHALF OF THE ASSESSEE AND NO WRITTEN REPLY WAS FILED. LD. DIT (E) HA S FURTHER STATED THAT ANOTHER REMINDER DATED 20 TH MAY, 2011 WAS ALSO ISSUED FOR 31 ST MAY, 2011 AND ON THAT DATE ALSO THE REQUIREMENTS WERE NOT COMPLIED WITH. LD. DIT (E) HAS FURTHER REFERRED THAT AS PER R ULE 17A OF IT RULES, 1962, THE ASSESSEE IS REQUIRED TO PRODUCE THE ORIGINAL M OA AND REGISTRATION CERTIFICATE AND IN THE ABSENCE OF THESE D OCUMENTS THE REQUEST OF THE ASSESSEE FOR REGISTRATION U/S 12A CANNOT BE ENTERTAINED AND RELYING ON THESE FACTS, LD. DIT (E) HAS REJECTED B OTH THE ITA NOS.3837 & 3838/DEL/2011 3 APPLICATIONS FILED BY THE ASSESSEE ON THE GROUND THAT IN THE ABSENCE OF DOCUMENTARY EVIDENCE/PROOF OF CHARITABLE ACTIVITY, REGISTRATION U/S 12A CANNOT BE GRANTED. AS REGISTRATION U/S 12A IS NOT GRA NTED, THE REQUEST FOR APPROVAL U/S 80G IS ALSO REJECTED. 3. AFTER NARRATING THE FACTS, AND REFERRING TO GROUN DS OF APPEAL TAKEN IN 12A APPEAL, IT IS THE CASE OF THE LEARNED AR THAT NONE OF THE LETTERS ISSUED BY LD. DIT (E) HAS BEEN RECEIVED OR SERVE D UPON THE ASSESSEE. HE PLEADED THAT IN THE INTEREST OF JUSTICE, TH E MATTER SHOULD GO BACK TO THE FILE OF LD. DIT (E) TO AFFORD THE ASSE SSEE A REASONABLE OPPORTUNITY OF HEARING. 4. ON THE OTHER HAND, THE LEARNED DR RELYING UPON T HE ORDER OF LD. DIT (E) PLEADED THAT THE ASSESSEE DID NOT APPEAR BEFORE LD. DIT (E) AND, THEREFORE, LD. DIT (E) WAS RIGHT IN REJECTING BOTH T HE CLAIMS OF THE ASSESSEE. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. THOUGH IT HAS BEEN MEN TIONED IN THE ORDER PASSED BY LD. DIT (E) THAT LETTERS WERE SENT TO T HE ASSESSEE, BUT, IT HAS NOT BEEN STATED WHETHER OR NOT THOSE LETTERS WER E SERVED UPON THE ASSESSEE. HOWEVER, KEEPING IN VIEW THE INTEREST OF JUSTICE, WE CONSIDER IT JUST AND PROPER TO RESTORE BOTH THESE APPEA LS TO THE FILE OF LD. DIT (E). TO ENSURE COMPLIANCE BY THE ASSESSEE, WE R EQUIRE THE LEARNED AR TO FILE ALL THOSE DOCUMENTS STATED IN THE O RDER ON OR BEFORE 31 ST MARCH, 2012 AND TO APPEAR BEFORE LD. DIT (E) ON 17 TH APRIL, 2012. AFTER TAKING ALL THESE DOCUMENTS REFERRED IN THE IMPU GNED ORDER AND AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF HE ARING, LD. DIT (E) WILL RE-ADJUDICATE BOTH THE ISSUES I.E., REGARDING REGISTRATION OF THE ASSESSEE U/S 12A AS WELL AS ITS CLAIM FOR APPROVAL U/S 80G. WE DIRECT ACCORDINGLY. WE MAY MENTION HERE THAT THE LEARNED AR HAD TAKEN NOTE ITA NOS.3837 & 3838/DEL/2011 4 OF BOTH THE ABOVE MENTIONED DATES AND HE ASSURED THAT THE ASSESSEE WILL COMPLY WITH THESE DIRECTIONS OF ITAT. 6. IN VIEW OF THE ABOVE DISCUSSION, WE SET ASIDE THE AFO REMENTIONED ORDER OF LD. DIT (E) AND RESTORE THESE MATTERS TO THE FILE OF LD. DIT (E) TO RE-ADJUDICATE THE CLAIM OF THE ASSESSEE AS PER THE DIREC TIONS GIVEN ABOVE. 7. IN THE RESULT, FOR STATISTICAL PURPOSES THESE APPEALS A RE CONSIDERED TO BE ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 13.03.20 12. SD/- SD/- [B.C. MEENA] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 13.03.2012. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES