Rural Technical Education Society, Hulkoti V. Asst.C.I.T., Hubli

ITA 401/BANG/2015

• Counselvise Citation: 40121114 RSA 2015
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 14-10-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 18-03-2015
• Court: TRIBUNAL
• Department Lawyers: R PRATIBHA SHRI SUNIL KUMAR A
• Keywords: Opportunity of being heard
• Section: 12A; 12AA; 12; 2; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH C, BANGALORE BEFORE SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER ITA NOS.401 TO 403(B)/2015 (ASSESSMENT YEARS : 2009-2010 TO 2011-12) RURAL TECHNICAL EDUCATION SOCIETY HUBBALLI ROAD, A/P HULKOTI, DIST. GADAG -582 205 APPELLANT PAN NO.AAATR4216P VS THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-2(1) HUBLI. RESPONDENT AND S.P.NOS. 50 & 81 (B)/2015 (IN ITA NOS.402 & 403(B)/2015 (ASSESSMENT YEARS : 2010-11 & 2011-12 (BY ASSESSEE) ASSESSEE BY : SMT R.PRATIBHA, ADVOCATE REVENUE BY : SHRI SUNIL KUMAR AGARWALA, JCIT DATE OF HEARING : 14-10-2015 DATE OF PRONOUNCEMENT : 30 -10-2015 O R D E R PER SHRI ABRAHAM P GEORGE, AM: IN THESE APPEALS FILED BY THE ASSESSEE ITS GRIEVANC E IS THAT THE CIT(A) CONSIDERING THE ASSESSEE AS A SOCIETY NOT REGISTERE D U/S 12AA OF THE IT ACT, CONFIRMED THE ORDER OF THE AO NOT GRANTING IT THE EXEMPTION CLAIMED ITA NOS.401 TO 403(B)/15 & SP NOS.50 & 81/15 2 U/S 11 & 12 OF THE ACT, 1961. ASSESSEE HAS ALSO R AISED A GRIEVANCE THAT SEC.40A(IA) OF THE IT ACT, WAS APPLIED CONSIDERING THE ASSESSEE TO BE EARNING INCOME FROM BUSINESS AND PROFESSION. 2. WHEN THE APPEALS CAME UP, LEARNED COUNSEL FOR TH E ASSESSEE SUBMITTED THAT ASSESSEES APPLICATION FOR REGISTRAT ION U/S 12A OF THE IT ACT, 1961 FILED ON 12-03-2007 WAS NEVER ACTED UPON BY THE CIT. THE ASSESSMENT FOR THE IMPUGNED ASSESSMENT YEAR WAS COM PLETED WITHOUT GIVING IT THE ELIGIBLE EXEMPTION U/S 11 & 12 OF THE IT ACT, 1961 FOR A REASON THAT REGISTRATION WAS GRANTED TO IT BY THE CIT ONLY WITH EFFECT FROM 02-01- 2013 BASED ON A SUBSEQUENT APPLICATION. THE LEARNE D AR SUBMITTED THAT THE ISSUE OF NON-GRANT OF REGISTRATION BASED ON ITS APPLICATION DATED 12-03- 2007 HAD TRAVELLED UPTO THIS TRIBUNAL AND THIS TRIB UNAL IN ITS ORDER DATED 05-06-2015 IN ITA NO.1280(B)/2013 HAD HELD AS UNDER ; 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND RE LEVANT MATERIAL ON RECORD, WE FIND THAT THE COMMISSIONER R AISED QUERY VIDE LETTER DATED 15-03-2007 AND ASKED THE AS SESSEE TO EXPLAIN THE DELAY IN FILING OF THE APPLICATION I N FORM NO.10A DATED 12-03-2007. THEREAFTER, THE ASSESSEE FILED T HREE MORE APPLICATIONS IN COMPLIANCE WITH THE DIRECTION OF TH E COMMISSIONER OF INCOME-TAX. HOWEVER, THE LEARNED C IT HAS NOT DISCUSSED ABOUT DELAY IN FILING OF THE APPLICAT ION AND THE DATE OF THE FIRST APPLICATION WHILE PASSING THE IMP UGNED ORDER. IN ANY CASE, WHEN THE COMMISSIONER HAS NOT GRANTED THE REGISTRATION FROM THE DATE OF APPLICATION DATED 12-03- 2007, THE ASSESSEE SHOULD HAVE BEEN GIVEN AN OPPORT UNITY OF HEARING PRIOR TO PASS SUCH ORDER. ACCORDINGLY, IN THE FACTS ITA NOS.401 TO 403(B)/15 & SP NOS.50 & 81/15 3 AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST O F JUSTICE, WE SET ASIDE THE ORDER OF THE LEARNED CIT AND RESTO RE THIS ISSUE TO THE FILE OF COMMISSIONER TO CONSIDER THE R EGISTRATION W.E.F. THE ORIGINAL APPLICATION DATED 12-03-2007 AF TER GIVING AN OPPORTUNITY OF BEING HEARD TO THE APPLICANT SOCI ETY AND DECIDE THE SAME AS PER LAW. AS PER THE LEARNED AR THE MATTER WAS STILL TO BE DE CIDED AFRESH BY THE CIT(A). 3. LEARNED DR SUBMITTED THAT THE ASSESSMENT COULD BE SET ASIDE AND SENT BACK TO THE LOWER AUTHORITIES FOR FRAMING IT AFRESH ONCE THE CIT HAD DECIDED ON THE ISSUE OF REGISTRATION U/S 12A OF THE IT ACT, 1961 PURSUANT TO THE DIRECTIONS OF THE TRIBUNAL MENTIONE D (SUPRA). 4. WE HAVE HEARD THE CONTENTIONS AND PERUSED THE O RDERS. CO- ORDINATE BENCH OF THIS TRIBUNAL HAD SET ASIDE THE I SSUE OF GRANT OF REGISTRATION U/S 12A OF THE IT ACT, 1961 TO CIT FOR CONSIDERATION AFRESH, BASED ON THE APPLICATION DATED 12-03-2007 OF THE AS SESSEE. THE ASSESSMENTS FOR ALL THE IMPUGNED YEARS WOULD ENTIRE LY DEPEND UPON THE DECISION OF THE COMMISSIONER WITH REGARD TO THE ASS ESSEES APPLICATION DATED 12-03-2007 FILED BY THE ASSESSEE. WE ARE THER EFORE OF THE OPINION THAT THE IMPUGNED ASSESSMENTS HAVE TO BE SET ASIDE AND REMITTED BACK TO THE FILE OF THE AO FOR CONSIDERATION AFRESH IN ACCO RDANCE WITH THE DECISION OF THE LEARNED CIT, ON THE APPLICATION FILED BY THE ASSESSSEE U/S 12A OF THE ITA NOS.401 TO 403(B)/15 & SP NOS.50 & 81/15 4 IT ACT, PURSUANT TO THE TRIBUNALS DIRECTION REPROD UCED (SUPRA). ACCORDINGLY, WE SET ASIDE THE ORDER OF THE AUTHORIT IES BELOW AND REMIT THE ASSESSMENT BACK TO THE FILE OF THE AO, FOR DE-NOVO CONSIDERATION. 5. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLO WED FOR STATISTICAL PURPOSES. 6. IN VIEW OF THE ABOVE, THE STAY PETITIONS FILED BY THE ASSESSEE HAVE BECOME INFRUCTUOUS AND ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 30 TH OCTOBER, 2015. SD/- SD/- ( ASHA VIJAYARAGHAVAN) (ABRAHAM P GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER P L A C E : BANGALORE D A T E D : 30-10-2015 AM* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER AR, ITAT, BANGALORE