Sarvo Dharm Sadbhawna Trust, Faridabad V. CIT, Faridabad

ITA 389/DEL/2010

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5766 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 28-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B K RAO
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 389/DEL/2010 SARVO DHARM SADBHAWNA TRUST, H. NO. 21, SECTOR 14, FARIDABAD, HARYANA VS. COMMISSIONER OF INCOME TAS, FARIDABAD PAN: AAETS 3168 H (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI B. K. RAO, SR. DR O R D E R PER: C.L. SETHI, J.M. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 04.12.2009 PASSED BY THE LD. CIT, FARIDABAD, REJECTING THE ASS ESSEES APPLICATION FOR APPROVAL U/S. 80G OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE LD. COMMISSIONER OF INCOME TAX HAS ERRED ON FACTS A ND IN LAW IN REJECT THE CLAIM OF THE TRUST UNDER SECTION 80G OF THE INCOME TAX ACT, 1961. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LD. COMMISSIONER OF INCOME TAX HAS ERRED ON FACTS A ND IN LAW IN REJECT THE CLAIM OF THE TRUST UNDER SECTION 80G OF THE ITA NO. 389/DEL/2010 PAGE 2 OF 5 INCOME TAX ACT WITHOUT GOING THROUGH THE SUBMISSION S SUBMITTED BY THE ASSESSEE. 3. WE HAVE HEARD THE LD. DR. NONE FOR THE ASSESSEE WAS PRESENT. 4. IN THIS CASE, THE ASSESSEE TRUST WAS ESTABLISHED ON 08.09.1992. APPROVAL U/S. 80G(5) WAS GRANTED TO THE ASSESSEE UP TO 31.03.2009 VIDE ORDER DATED 18.02.2008. THEREAFTER, THE ASSESSEE MADE AN APPLICATION ON 08.06.2009 FOR RENEWAL OF EXEMPTION U/S. 80G OF THE ACT. IN ORDER TO SATISFY HIMSELF AS TO WHETHER THE CONDITIONS FOR GRANT OF E XEMPTION U/S. 80G ARE FULFILLED, THE CIT ISSUED QUESTIONNAIRE TO THE ASSE SSEE VIDE LETTER DATED 04.08.2009 FIXING THE MATTER ON 09.09.2009. THEREA FTER THE MATTER WAS AGAIN FIXED FOR HEARING ON 05.11.2009, AND FURTHER ONE MO RE OPPORTUNITY WAS GIVEN BY THE CIT FIXING THE CASE ON 19.11.2009. ON THE D ATE FIXED ON 19.11.2009, ONE SHRI V.K. GUPTA, CA, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE APPEARED BEFORE THE CIT AND FILED SUBMISSIONS IN WRITING. H OWEVER, THE CIT ASKED HIM TO FURNISH THE SOME MORE DETAILS AND ADJOURNED THE MATTER TO 25.11.2009. ON 25.11.2009, NONE ATTENDED FOR THE A SSESSEE. HOWEVER, THE CIT IN HIS WISDOM ISSUED A FRESH NOTICE OF HEARING DATED 26.11.2009, WHICH WAS SENT BY SPEED POST ON 27.11.2009, GRANTING THE TIME TO THE ASSESSEE TILL 01.12.2009. AS NONE ATTENDED NOR ANY WRITTEN REQUE ST WAS MADE FOR ITA NO. 389/DEL/2010 PAGE 3 OF 5 ADJOURNMENT FOR HEARING ON 01.12.2009, THE CIT PASS ED THE ORDER ON 04.12.2009 BY OBSERVING AS UNDER:- 4. FROM THE ABOVE CIRCUMSTANCES OF THE CASE, IT IS APPARENT THAT THE APPLICANT TRUST HAS NOT PURSUED I TS APPLICATION FOR GRANT OF EXEMPTION U/S. 80G. IN VI EW OF THE LEGAL DICTUM THAT VIGILANTIBUS NON DORMIENTIBUS JUR A SUBVENIUNT [THAT EQUITY COMES TO THE AID OF THE VIG ILANT AND NOT THE SLUMBERING (30 BOM LR 1463]. AMPLE OPPORTU NITIES WERE GIVEN TO THE APPLICANT TRUST TO COMPLY WITH TH E STATUTORY REQUIREMENTS, WHICH IT FAILED TO AVAIL. THUS, FAIL URE ON THE PART OF THE APPLICANT TO COMPLY WITH THE TERMS TO F URNISH INFORMATION/DETAILS, THERE IS NO EVIDENCE FILED IN SUPPORT OF ITS CLAIM REGARDING THE CHARITABLE NATURE OF THE OBJECT S AND THE GENUINENESS OF THE ACTIVITIES OF THE TRUST. IN THI S VIEW OF THE MATTER, I AM SATISFIED THAT THERE EXIST NO GENUINE TRUST ENGAGED IN ANY CHARITABLE OBJECTS/ACTIVITIES. 5. ON PERUSAL OF THE AFORESAID ORDER OF THE CIT, IT IS CLEAR THAT THE CIT HAS TAKEN A VIEW THAT THERE EXIST NO GENUINE TRUST ENGAGED IN ANY CHARITABLE OBJECT OR ACTIVITIES MERELY FOR THE REASON THAT THE ASSESSEE FAILED TO AVAIL AMPLE OPPORTUNITIES PROVIDED BY THE CIT TO THE TRUS T. IN OTHER WORDS, THE CIT HAS BEEN GUIDED MERELY BY THE FACT THAT THERE W AS NON-COMPLIANCE BY THE ASSESSEE. THE CIT HAS NOT POINTED OUT ANY MATE RIAL OR EVIDENCE ON RECORD TO HOLD THAT THERE EXISTS NON-GENUINE TRUST ENGAGED IN ANY CHARITABLE OBJECT OR ACTIVITIES EXCEPT BY DRAWING INFERENCES A GAINST THE ASSESSEE BECAUSE OF NON-COMPLIANCE OF THE ASSESSEE. FURTHER , IT IS ALSO NOT CLEAR AS TO WHETHER THE NOTICE OF HEARING FIXING DATE ON 01.12. 2009 SENT BY SPEED POST ITA NO. 389/DEL/2010 PAGE 4 OF 5 ON 27.11.2009, HAS ACTUALLY BEEN SERVED UPON THE AS SESSEE. NO SUCH FINDING HAS BEEN RECORDED BY THE CIT. WE FURTHER OBSERVED THAT THE TIME GAP BETWEEN THE DATE OF NOTICE WAS SENT AND DATE OF HEA RING WAS ALSO VERY LITTLE SO AS TO ENABLE ONE TO COMPLY WITH THE TERMS OF NOT ICES OF HEARING. 6. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUM STANCES OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT IF ONE MORE OPPORTU NITY IS GIVEN TO THE ASSESSEE TO PRODUCE AND FURNISH THE EVIDENCES AND I NFORMATION IN SUPPORT OF ITS APPLICATION FOR RENEWAL OF EXEMPTION U/S. 80G, THAT WOULD MEET THE ENDS OF JUSTICE AND THE MATTER IN ISSUE, CAN BE DECIDED IN ITS RIGHT AND CORRECT PERSPECTIVE AFTER EXAMINING ALL THE ACTIVITIES CARR IED ON BY THE ASSESSEE TRUST IN THE LIGHT OF ITS OBJECTS FOR WHICH IT IS CREATED . THE CIT SHALL PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUPPORT ITS APP LICATION FOR RENEWAL OF EXEMPTION U/S. 80G OF THE ACT. FOR THAT PURPOSE, W E DO HEREBY DIRECT THE ASSESSEE TRUST TO APPEAR BEFORE THE CONCERNED CIT W ITHIN TWO MONTHS FROM THE END OF THE MONTH IN WHICH THIS ORDER IS RECEIVE D BY THE ASSESSEE AND SHALL TAKE NECESSARY INSTRUCTIONS FROM THE CIT FOR FINAL HEARING OF THE MATTER, AND THE ASSESSEE SHALL BE UNDER OBLIGATION TO PRODUCE A LL SUCH DETAILS AND INFORMATION AS MAY BE REQUIRED BY THE CIT FOR DECID ING THE MATTER AS PER LAW. WE ORDER ACCORDINGLY. ITA NO. 389/DEL/2010 PAGE 5 OF 5 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED TO BE ALLOWED FOR STATISTICAL PURPOSE. 8. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT O N 29 TH MARCH, 2010 IMMEDIATELY AFTER THE HEARING WAS OVER. SD/- ( SHAMIM YAHYA) ACCOUNTANT MEMBER SD/- (C.L. SETHI) JUDICIAL MEMBER DATED: 29 TH MARCH, 2010 *NITASHA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT 5. DR, ITAT, NEW DELHI. BY ORDER DEPUTY REGISTRAR