ACIT, Circle-2(1), Sambalpur, Sambalpur V. Shakuntala Bidyadhar Trust, Sambalpur

ITA 408/CTK/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7218 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 03-11-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: B PANDA B R PANDA
• Keywords: Opportunity of being heard; Additional evidence; Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.408/CTK/2014 ASSESSMENT YEAR : 2010 - 2011 ACIT, CIRCLE 2(2), SAMBALPUR VS. SHAKUNTALA BIDYADHAR TRUST, NIVEDITA, KALYAN NAGAR, BUDHARAJA, DIST: SAMBALPUR PAN/GIR NO. AABTS 1540 G (APPELLANT ) .. ( RESPONDENT ) C.O.NO.23/CTK/2016 (ARISING OUT OF ITA NO.408/CTK/2014) ASSESSMENT YEAR :2010 - 2011 SHAKUNTALA BIDYADHAR TRUST, NIVEDITA, KALYAN NAGAR, BUDHARAJA, DIST: SAMBALPUR VS. ACIT, CIRCLE 2(2), SAMBALPUR PAN/GIR NO. AABTS 1540 G (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI B.PANDA, B.R.PANDA, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 1 7 /01/ 2017 DATE OF PRONOUNCEMENT : 17 /01/ 2017 O R D E R THIS IS AN APPEAL FILED BY THE REVENUE AGA INST THE ORDER OF CIT(A) - II, BHUBANESWAR , DATED 22.8.2014 , FOR THE ASSESSMENT YEAR 2010 - 2011 . THE ASSESSEE HAS ALSO FILED CROSS OBJECTION. 2 ITA NO.408/CTK/2014 C.O.NO.23/CTK/2016 ASSESSMENT YEAR :2010 - 2011 2. THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS: 1. THE LD CIT(A) HAS ERRED IN GI VING FULL RELIEF TO THE ASSESSEE TRUST AS THE ACTIVITIES OF THE ASSESSEE TRUST ARE NOT CHARITABLE IN NATURE AND IT DID NOT QUALIFY TO CLAIM EXEMPTION U/S.11 OF THE I.T.ACT, 1961. 2. THE LD CIT(A) HAS ERRED IN ACCEPTING THE ADDITIONAL DOCUMENTARY EVIDENCES PRODUCED BY THE ASSESSEE DURING THE HEARING OF THE APPEAL WITHOUT GIVING OPPORTUNITY OF BEING HEARD TO THE AO WHICH IS VIOLATING RULE 46A(3) OF I.T.RULES, 1962. 3. AT THE OUTSET, LD D.R. ARGUED AND SUBMITTED THAT THE LD CIT(A) WHILE ADJUDICATING THE APPE AL OF THE ASSESSEE HAS ACCEPTED THE ADDITIONAL EVIDENCE IN VIOLATION OF RULE 46A OF I.T.RULES, 1962. HENCE, THE ORDER OF LD CIT(A) IS NOT SUSTAINABLE. FOR THIS, HE RELIED ON PARA 12 PAGE 4 OF LD CIT(A)S ORDER. 4. LD A.R. OF THE ASSESSEE AGREED WITH TH E SUBMISSION OF LD D.R. AND SUBMITTED THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF LD CIT(A) FOR ADJUDICATING THE APPEAL OF THE ASSESSEE AFRESH AFTER CALLING FOR A REMAND REPORT FROM THE ASSESSING OFFICER ON THE ADDITIONAL EVIDENCES FILED BY THE ASS ESSEE BEFORE LD CIT(A). 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. I FIND THAT LD CIT(A) WHILE ADJUDICATING THE APPEAL OF THE ASSESSEE IN PARA 12 PAGE 4 HAS HELD AS UNDER: THIS IS THEREFORE A CASE WHERE THE PROVISIONS OF RULE 46A OF THE INCOME - TAX RULES, 1962 APPLY INASMUCH AS THEY RELATE TO THE 3 ITA NO.408/CTK/2014 C.O.NO.23/CTK/2016 ASSESSMENT YEAR :2010 - 2011 EXISTENCE OF SUFFICIENT CAUSE AND THE LACK OF PROVIDING OR ADEQUATE OPPORTUNITY TO THE APPELLANT THAT PREVENTED HIM FROM SUBMITTING SUBSTANTIATING AND SUPPORTING EVIDENCES IN HIS POSSESSION. I AM DUTY BOUND TO ACCEPT THE DOCUMENTS SUBMITTED BEFORE ME BY THE APPELLANT, WHICH INCLUDE EVIDENCES BEARING OUT THE TAX EXEMPT NATURE OF ITS ACTIVITIES, EVIDENCES THAT INCLUDE COPIES OF THE TRU ST DEED, CERTIFICATE OF REGISTRATION, SOURCES FROM WHERE THE FUNDS WERE RECEIVED, UTILISATION CERTIFICATE, CONFIRMATIONS OF RECEIPTS BY THE BENEFICIARIES AND PHOTOGRAPHS TESTIFYING TO ACTIVITIES. 6. THEREFORE, IN VIEW OF SUBMISSIONS OF BOTH THE PARTIES, I SET ASIDE THE ORDER OF LD CIT(A) AND REMAND THE MATTER BACK TO HIS FILE FOR ADJUDICATING THE APPEAL OF THE ASSESSEE AFRESH AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE AND AFTER CALLING A REMAND REPORT FROM THE ASSESSING OFF ICER ON THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE BEFORE LD CIT(A). 7. THE CROSS OBJECTION FILED BY THE ASSESSEE IS IN SUPPORT OF THE ORDER OF LD CIT(A). AS THE APPEAL OF THE REVENUE IS RESTORED BACK TO THE FILE OF LD CIT(A) FOR FRESH ADJUDICATION, T HE CROSS OBJECTION OF THE ASSESSEE HAS BECOME INFRUCTIOUS AND HENCE, DISMISSED. 8. IN THE RESULT, APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES AND THE CROSS OBJECTION OF THE ASSESSEE IS DISMISSED. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 17 /01 /2017 4 ITA NO.408/CTK/2014 C.O.NO.23/CTK/2016 ASSESSMENT YEAR :2010 - 2011 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : ACIT, CIRCLE 2(2), SAMBALPUR 2. THE RESPONDENT. SHAKUNTALA BIDYADHAR TRUST, NIVEDITA, KALYAN NAGAR, BUDHARAJA, DIST: SAMBALPUR 3. THE CIT(A) - II BHUBANESWAR. 4. CIT , SAMBALPUR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//