M/s.Association of Schools for the Indian School Certificate, Trivandrum V. CIT( Exemption), Cochin

ITA 396/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96712 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 08-07-2015
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH C OCHIN BEFORE S/SHRI B.P. JAIN, AM AND GEORGE GEOR GE K., JM I.T.A. NO.396 /COCH/2015 ASSESSMENT YEAR : - M/S. ASSOCIATION OF SCHOOLS FOR THE INDIAN SCHOOL CERTIFICATE, SARVODAYA VIDYALAYA, MAR IVANIOS VIDYA NAGAR, NALANCHIRA, THIRUVANANTHAPURAM-695 015 [PAN:AAETA 4450A] VS. THE COMMISSIONER OF INCOME-TAX, (EXEMPTIONS), KOCHI. (ASSESSEE -APPELLANT) (REVENUE-RESPONDENT) ASSESSEE BY SHRI MATHEW JOSEPH, CA REVENUE BY SHRI SHANTAM BOSE, CIT (DR) DATE OF HEARING 17/09/2015 DATE OF PRONOUNCEMENT 21/09/2015 O R D E R PER B.P.JAIN, ACCOUNTANT MEMBER: THIS APPEAL OF THE ASSESSEE ARISES FROM THE OR DER OF THE COMMISSIONER OF INCOME-TAX (EXEMPTIONS), KOCHI DATED 28/05/2015 DENY ING EXEMPTION U/S. 12AA OF THE INCOME TAX ACT, 1961. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM THE ORDER OF THE CIT(EXEMPTIONS) PASSED U/S. 12AA OF THE ACT, ARE REP RODUCED FOR THE SAKE OF CONVENIENCE HEREINBELOW: I.T.A. NO.396/COCH/2015 2 ASSOCIATION OF SCHOOLS FOR THE INDIAN SCHOOL CERTI FICATE, SARVODAYA VIDYALAYA MAR IVANIOS VIDYA NAGAR, NALANCHIRA, THIRUVANANTHAP URAM, A SOCIETY REGISTERED UNDER THE TRAVANCORE-COCHIN LITERARY, SCIENTIFIC AN D CHARITABLE SOCIETIES REGISTRATION ACT, 1955 ON 23-08-2014, HAS FILED AN APPLICATION IN FORM NO. 10A ON 04-11-2014 REQUESTING FOR REGISTRATION U/S. 12A OF THE INCOME TAX ACT, 1961. 2. THE CASE WAS POSTED FOR HEARING ON 15-05-2015 AN D ON THE DATE OF HEARING SHRI RAJU M. KOLAVELIL, CA DULY AUTHORIZED BY THE A SSESSEE ATTENDED THE HEARING AND FILED THE DETAILS CALLED FOR VIDE THIS OFFICE L ETTER DATED 27-04-2015. THE SOCIETY HAS BEEN FORMED FOR THE PURPOSE OF FORMULAT ING A COMMON POLICY FOR SCHOOLS IN KERALA FOLLOWING THE INDIAN SCHOOL CERTI FICATE SYLLABUS. THE MEMBER SCHOOLS PAY A ONETIME ENTRY FEE AND ANNUAL RENEWAL FEE. THE SOCIETY IS MEANT TO ENABLE STUDENTS FROM ISC SCHOOLS TO TAKE PART IN NATIONAL COMPETITIONS AND ALSO TO EVOLVE UNIFORM STANDARDS OF TEACHER TRAININ G. THE SOCIETY WAS FORMED ON 23-08-2014. ACCOUNTS AND RETURN OF INCOME ARE N OT DUE ON THE DATE OF APPLICATION. ASSESSING OFFICER HAS ALSO REPORTED TH AT SPORT ENQUIRY CONDUCTED THROUGH HIS INSPECTOR REVEALED THAT NO PROPER REGIS TERS OR ANY OTHER DETAILS REGARDING THE ACTIVITIES ARE NOT AVAILABLE FOR VERI FICATION. THE ASSESSING OFFICER HAS ALSO REPORTED THAT NO MAJOR ACTIVITIES HAVE BEE N PERFORMED BY THE APPLICANT SO FAR. 3. FROM THE REPORT OF THE ASSESSING OFFICER I FIND THAT THE ENTITY IS AN ASSOCIATION OF SCHOOLS AND NOT A PUBLIC CHARITABLE INSTITUTION. THE ACTIVITIES AND GENUINENESS OF THE TRUST COULD NOT BE ESTABLISHED. I, THEREFORE, REFUSE TO REGISTER THE TRUST U/S. 12AA OF THE INCOME TAX ACT AND THE APPLICATION FILED IN FORM NO.10A ON 14-11-2014 IS REJECTED. 3. IT WAS ARGUED BY THE LD. COUNSEL FOR THE ASSE SSEE THAT THE ASSESSEE WAS NOT PROVIDED SUFFICIENT OPPORTUNITY OF BEING HEARD AND IN FACT, NECESSARY DETAILS WERE FILED ON THE DATE OF HEARING, I.E., 15-05-2015. TH EREAFTER, NO OPPORTUNITY WAS PROVIDED. ACCORDINGLY, THE ORDER OF THE CIT(EXEMPT IONS) IS BAD IN LAW. 4. ON THE OTHER HAND, THE LD. DR RELIED ON THE O RDER OF THE CIT(EXEMPTIONS). I.T.A. NO.396/COCH/2015 3 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUS ED THE FACTS OF THE CASE. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ORDER OF THE COMMISSIONER OF INCOME- TAX(EXEMPTIONS) U/S. 12AA OF THE ACT WAS PASSED ON 2 8/05/2015. AS IS EVIDENT, THE CASE WAS POSTED FOR HEARING ON 15/05/2015 ON WH ICH DATE THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE ATTENDED THE HEARING AND FILED THE DETAILS CALLED FOR VIDE LETTER DATED 27/04/2015. THE ASSESSING OFFICE R MADE SPOT ENQUIRY CONDUCTED THROUGH HIS INSPECTOR THAT NO PROPER REGISTERS OR A NY OTHER DETAILS REGARDING THE ACTIVITIES WERE AVAILABLE FOR VERIFICATION. THE AS SESSING OFFICER ALSO FOUND THAT NO MAJOR ACTIVITIES HAVE BEEN PERFORMED BY THE APPLICA NT SO FAR AND THEREFORE, THE ACTIVITIES AND GENUINENESS OF THE TRUST COULD NOT B E ESTABLISHED. THE OUTCOME OF THE SPOT ENQUIRY WAS NOT PROVIDED TO THE ASSESSEE A ND NO FURTHER OPPORTUNITY AFTER THE DATE OF HEARING, I.E., 15-05-2015 WAS PROVIDED TO THE ASSESSEE WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. THE LD. COUNSEL FOR THE ASSESSEE ARGUED THAT THE ASSESSEE IS HAVING ALL THE REGISTERS REQUI RED TO BE MAINTAINED STATUTORILY AND BALANCE SHEET AND PROFIT AND LOSS ACCOUNT WHICH SHOW THE ACTIVITIES CONDUCTED BY THE ASSESSEE FOR CHARITABLE PURPOSES, BUT FOR WA NT OF PROPER OPPORTUNITY, THEY COULD NOT BE PRODUCED. IN THE INTEREST OF JUSTICE, WE ARE OF THE VIEW THAT THE ASSESSEE HAS NOT BEEN PROVIDED ADEQUATE OPPORTUNITY OF BEING HEARD AND THEREFORE, THE MATTER IS SET ASIDE TO THE FILE OF T HE CIT(EXEMPTIONS), KOCHI TO DECIDE THE ISSUE DE NOVO AFTER PROVIDING ADEQUATE O PPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THE ASSESSEE IS DIRECTED TO CO-OPE RATE WITH THE PROCEEDINGS I.T.A. NO.396/COCH/2015 4 BEFORE THE CIT(EXEMPTIONS). ACCORDINGLY, THE MATTER IS SET ASIDE TO THE FILE OF THE CIT(EXEMPTIONS) AS DIRECTED HEREINABOVE. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IN I.T.A. NO. 396/COCH/2015 IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 21-0 9-2015. SD/- SD/- (GEORGE GEORGE K.) (B.P. JAIN) JUDICIAL MEMBER ACC OUNTANT MEMBER PLACE: KOCHI DATED: 21ST SEPTEMBER, 2015 GJ COPY TO: 1. M/S. ASSOCIATION OF SCHOOLS FOR THE INDIAN SCHOO L CERTIFICATE, SARVODAYA VIDYALAYA, MAR IVANIOS VIDYA NAGAR, NALANCHIRA, THI RUVANANTHAPURAM-695 015 2. THE COMMISSIONER OF INCOME-TAX(EXEMPTIONS), KOCHI 3. THE COMMISSIONER OF INCOME-TAX, KOCHI. 4. D.R., I.T.A.T.,COCHIN. 5. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T., COC HIN