Good News Hour, Cuttack V. CIT(Exemption), Hyderabad

ITA 385/CTK/2015

• Counselvise Citation: 38522114 RSA 2015
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-10-2015
• Assessment Year: misc
• Appeal Filed On: 07-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASIT KUMAR MOHAPATRA
• Assessee Lawyers: G NAIKRAJAT KAR
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK . . , & , BEFORE S/SHRI P.M.JAGTAP, ACCOUNTANT M EMBER & PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ' ./ ITA NO.385/CTK/2015 GOOD NEWS HOUR, SUTAHAT, CHRISTIAN STREET, PO: BUXI BAZAR, CUTTACK VS. THE CIT (EXEMPTION), HYDERABAD. ' ./ # ' ./PAN/GIR NO. AAATG 2505 Q ( $ /APPELLANT ) . . ( %&$ / RESPONDENT ) ' * * * * /ASSESSEE BY : S/SHRI G.NAIK/RAJAT KAR + * * * * /REVENUE BY : SHRI ASIT KUMAR MOHAPATRA '+, / DATE OF HEARING : 29 TH OCT. 2015 -./ /DATE OF PRONOUNCEMENT 30 TH OCT. 2015 0 0 0 0 / O R D E R PER PARTHA SARATHI CHAUDHURY, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (EXEMPTION), HYDERABAD DATED 31.7.201 5 PASSED UNDER SECTION 12AA(1)(B)(II) OF THE INCOME-TAX ACT, 1961 (IN SHOR T THE ACT), REJECTING THE ASSESSEES APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. 2. THE RELEVANT FACTS, IN BRIEF, LEADING TO THE DIS PUTE ARE THAT THE ASSESSEE TRUST FILED AN APPLICATION IN FORM NO.10A ON 20.1.2015 SE EKING REGISTRATION UNDER SECTION 12AA OF THE ACT. THE COMMISSIONER OF INCOME TAX ( EXEMPTION) ASKED THE ASSESSEE TO PRODUCE ITS ORIGINAL MEMORANDUM OF ASSOCIATION FOR VERIFICATION AND TO FURNISH DETAILED REPLY ON SPECIFIC POINTS. HOWEVER, NO COMPLIANCE W AS MADE BY THE ASSESSEE. AGAIN, THE ASSESSEE WAS ASKED TO PROVIDE DETAILS OF AMENDM ENT CLAUSE, DISSOLUTION CLAUSE OF THE TRUST DEED ALONGWITH A DETAILED NOTE THEREON. THE LD CIT NOTICED THAT THE ITA NO. 385/CTK/2015 2 MEMORANDUM OF ASSOCIATION OF THE SOCIETY DOES NOT C ONTAIN ANY AMENDMENT CLAUSE. HENCE, HE WAS OF THE OPINION THAT THERE IS NO INTEN TION ON THE PART OF THE SOCIETY TO TAKE A PREVIOUS APPROVAL/PERMISSION OF THE CIT(E) P RIOR TO MAKING ANY AMENDMENT, WHICH IS NECESSARY FOR THE PURPOSE OF SEEKING REGIS TRATION U/S.12AA OF THE ACT. ON PERUSAL OF THE MOA, THE DISSOLUTION CLAUSE IS MENTI ONED AS UNDER: UPON DISSOLUTION OF THE SOCIETY ITS ASSETS BE HAND ED OVER TO SIMILAR TYPE OF REGISTRAR SOCIETY OR TO GOVT AFTER SATISFACTION OF ALL ITS DEBTS AND LIABILITIES AND SHALL NOT BE DISTRIBUTED OR PAID AM ONG THE MEMBERS, PROVIDED THAT NO SOCIETY SHALL BE DISSOLVED UNLESS 3/5 TH OF ITS MEMBER SHALL HAVE EXPRESSED A WISH FOR SUCH DISSOLUTION BY THEIR VOTES DELIVERED IN PERSON OR BY PROXY AT A GENERAL BODY MEETING CON VENED FOR THE PURPOSE, PROVIDED THAT THE SOCIETY REGISTERED UNDER THIS SHALL NOT BE A DISSOLVED WITHOUT THE CONSENT OF THE GOVERNMENT OF THE STATE OF REGISTRATION WHERE THE GOVT. IS A MEMBER, CONTRIBUT OR OR OTHERWISE INTERESTED. IN VIEW OF THIS, THE LD CIT(E) HELD THAT DISSOLUTIO N CLAUSE INDICATES THAT THERE IS NO INTENTION ON THE PART OF THE SOCIETY TO TRANSFER TH E ASSETS TO ANOTHER SOCIETY AND, THEREFORE, REJECTED THE APPLICATION FOR GRANT OF RE GISTRATION. HENCE, THE ASSESSEE HAS FILED APPEAL BEFORE US. 3. AT THE TIME OF HEARING, LD COUNSEL FOR THE ASSES SEE SUBMITTED THAT THE LD CIT(E) HAS REJECTED THE APPLICATION U/S.12AA OF THE ACT WI THOUT GIVING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HE PRAYED THAT IF THE RE IS ANY AMBIGUITY IN THE DISSOLUTION CLAUSE, THAT CAN BE RECTIFIED BY THE ASSESSEE SOCIE TY. 4. FROM THE SIDE OF THE REVENUE, LD D.R. HAS ARGU ED THAT THE CLAUSE OF DISSOLUTION IS VERY IMPORTANT. HE HAS ELABORATED T HAT IN A SITUATION WHEN THERE IS NO SPECIFIC CLAUSE OF DISSOLUTION, THEN A TRUST CAN TA KE AN ADVANTAGE OF TRANSFERRING THE MOVABLE AND IMMOVABLE ASSETS OF A TRUST TO THE PERS ONS INTERESTED INSTEAD OF ITA NO. 385/CTK/2015 3 TRANSFERRING THOSE ASSETS ON DISSOLUTION FOR CHARIT ABLE PURPOSES. SINCE THE DISSOLUTION CLAUSE WAS AMBIGUOUS IN THIS CASE, THEREFORE THE RE GISTRATION WAS RIGHTLY REJECTED. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE RECORD OF THE CASE. THE LD CIT(E) REJECTED THE REGISTRATION ON THE GROU ND THAT IN THE DISSOLUTION CLAUSE, IT IS MENTIONED THAT THERE IS NO INTENTION ON THE PART OF THE SOCIETY TO TRANSFER THE ASSETS TO ANY OTHER SOCIETY, HAVING REGISTRATION U/S.12AA OF THE ACT. BEFORE US, LD AR SUBMITTED THAT THE ASSESSEE SOCIETY WILL MAKE SUITABLE AMENDM ENT IN THE DISSOLUTION CLAUSE AS PER THE REQUIREMENT OF THE DEPARTMENT FOR REGISTRATION U/S.12AA. IN VIEW OF THIS, AND IN THE INTEREST OF JUSTICE, WE DIRECT THE ASSESSEE TO MAKE FRESH APPLICATION FOR REGISTRATION U/S.12AA OF THE ACT AFTER MAKING SUITABLE AMENDMENT IN THE DISSOLUTION CLAUSE. THE LD CIT(E) IS ALSO DIRECTED TO RECONSIDER THE APPLICATI ON OF THE ASSESSEE FOR GRANT OF REGISTRATION AS PER RELEVANT STATUTORY PROVISIONS. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 /10/2 015 SD/- SD/- . . ,/P.M.JAGTAP ,PA PARTHA SARATHI CHAUDHURY /ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; '' DATED 30/10 /2015 B.K.PARIDA, SPS 2 22 2 2 22 2 2 22 2 2 22 2 ITA NO. 385/CTK/2015 4 0 0 0 0 % % % % 4/ 4/ 4/ 4/ / COPY OF THE ORDER FORWARDED TO : 2 22 2 2 22 2 0' 0' 0' 0' / BY ORDER, SR. PRIVATE SECRETARY, , / ITAT, CUTTACK 1. $ / THE APPELLANT : GOOD NEWS HOUR, SUTAHAT, CHRISTIAN STREET, PO: BUXI BAZAR, CUTTACK . 2. %&$ / THE RESPONDENT. THE CIT (EXEMPTION), HYDERABAD 3. +5 %' , / DR, ITAT, CUTTACK 4 . 6 7, / GUARD FILE. & % //TRUE COPY// 2