Human Development Foundation, Bhubaneswar V. CIT, Bhubaneswar

ITA 41/CTK/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4400 (ITAT-CUTTACK)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2011
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 23-05-2011
• Assessment Year: 2009-2010
• Appeal Filed On: 18-01-2011
• Court: TRIBUNAL
• Department Lawyers: PARAMITA TRIPATHY
• Assessee Lawyers: J M PATTANAIK
• Keywords: Charitable institution

Judgement Text

IN THE INCME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE : HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER, AND HONBLE SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER. ITA NO. 041/CTK/2011 (ASSESSMENT YEAR 2009 - 10) HUMAN DEVELOPMENT FOUNDATI O N, AT: PLOT NO.386/9, SAI ANANDAM COMPLEX, PATIA, BHUBANESWAR PAN: AAATH 6879 E VERSUS COMMISSIONER OF INCOME - TAX, BHUBANESWAR. (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI J.M.PATTANAIK, AR FOR THE RESPONDENT SMT. PARAMITA TRIPATHY, DR ORDER SHRI K.K.GUP TA, ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORDER DT.19.2.2010 OF THE COMMISSIONER OF INCOME - TAX ACT, BHUBANESWAR REJECTING THE APPLICATION DT.30.9.2009 FILED BY THE ASSESSEE FOR GRANT OF REGISTRATION/S.12AA OF THE I.T.ACT,19 61. 2. THE FACTS, IN BRIEF, ARE THAT THE LEARNED CIT HAS REJECTED THE APPLICATION SEEKING REGISTRATION U/S.12AA OBSERVING THAT THE ASSESSEE NEITHER APPEARED FOR THE HEARING NOR SOUGHT ADJOURNMENT ON THE DATE FIXED FOR THE PURPOSE ON 15.2.1010. IN VIEW OF THIS , HE FURTHER OBSERVED IN HIS ORDER THAT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST COULD NOT BE ESTABLISHED BEYOND REASONABLE DOUBT AND DUE TO NON - COMPLIANCE OF THE ASSESSEE BEFORE HIM TO PRODUCE THE BOOKS OF ACCOUNT, IT ALSO COULD NOT BE CONCLUDED THA T THE ACTIVITIES OF THE TRUST IS CARRIED OUT IN ACCORDANCE WITH ITS OBJECTIVES AND CHARITABLE IN NATURE. 3. SHRI J.M.PATTANAIK, THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE TRUST FILED APPLICATION IN FORM NO.10A SEEKING REGISTRATION U/S.12AA OF THE INCOME - TAX ACT,1961. THE LEARNED CIT ISSUED LETTER DT.9.2.2010 SEEKING COMPLIANCE ON 15.3.2010. HE SUBMITTED THAT D UE TO MANAGEMENT DISTURBANCE THE LETTER COULD NOT BE COMPLIED WITH ON THE APPOINTED DATE AND TIME. THEREFORE, ORDER DT.19.2.2010 PASS ED BY THE LEARNED CIT WAS NOT JUSTIFIED. HE SUBMITTED TWO PAPER BOOKS, CONTAINING INTERALIA, THE COPY OF TRUST DEED DT.31.10.2007, THE ACTIVITY REPORT OF THE TRUST, THE AICE APPROVAL DT.30.6.2008 FOR AN INTAKE CAPACITY OF 60 ITA NO.041/CTK/2011 2 STUDENTS FOR THE COURSE OF PGDM , AUDIT REPORT OF THE TRUST FOR FY 2007 - 08 AND 2008 - 09, COPY OF REGISTRATION UNDER FOREIGN CONTRIBUTION(REGULATION)ACT,1976 DT.31.8.2010 ISSUED BY THE GOVT. OF INDIAN MINISTRY OF HOME AFFAIRS, AND COPY OF SOME OF THE VARIOUS PROGRAMMES/ACTIVITIES OF THE AS SESSEE TRUST SUCH AS, CCS PROJECT, CHSJ PROGRAMMES, CONSULTANCY, CSREM PROJECT, DRG TRADING(WATER &SANITATION), KORAPUT UNICEF PROJECT, ORIDSHA BIKASH, PFI BASE LINE SURVEY, POPULATION DAY PROJECT, TRIBAL GIRLS TRAINING ET C. THE LEARNED AR OF THE ASSESSEE CONTENDED THAT THE ABOVE DOCUMENTS CLEARLY ESTABLISH THAT THE ACTIVITIES OF THE ASSESSEE TRUST ARE BEING CARRIED OUT IN ACCORDANCE WITH ITS OBJECTIVES AND CHARITABLE IN NATURE AND THE ASSESSEE IS ENTITLED TO GRANT OF REGISTRATION U/S.12AA OF THE I.T.ACT. T HE LEARNED AR OF THE ASSESSEE FURTHER SU BMITTED THAT THE LEARNED CIT HAS TO TAKE INTO CONSIDERATION THE DOCUMENTS ALREADY AVAILABLE BEFORE HIM AND PASSED THE IMPUGNED ORDER DT.19.2.2010 IN A HURRY BY NOT GIVING SUFFICIENT REASONABLE OPPORTUNITY TO THE ASSE SSEE FOR PRODUCTION OF THE BOOKS OF ACCOUNT . THEREFORE, HE SOUGHT FOR RESTORATION OF THE MATTER TO THE FILE OF THE LEARNED CIT TO CONSIDER THE APPLICATION SEEKING REGISTRATION U/S.12AA DE NOVO. 4. SMT. PARAMITA TRIPATHY, LEARNED DR OPPOSED TO THE ABOVE CO NTENTION OF THE LEARNED AR OF THE ASSESSEE. SHE CONTENDED THAT SINCE THE ASSESSEE HAS FAILED TO COMPLY EITHER BY APPEARING OR PRODUCING THE REQUIRED DOCUMENTS ON THE DATE FIXED BY THE LEARNED CIT, THE EXPARTE ORDER REJECTING THE APPLICATION OF THE ASSESSEE SEEKING REGISTRATION U/S.12AA IS JUSTIFIED AND AS SUCH, IT NEEDS NO INTERFERENCE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE AGREE WITH SUBM ISSIONS OF THE LEARNED AR OF THE ASSESSEE THAT THE LEARNED CIT SHOULD HAVE EXTENDED OPPORTUNITY TO THE ASSESSEE FOR COMPLIANCE TO PRODUCE BOOKS OF ACCOUNTS . ON PERUSAL OF THE PAPERS AND DOCUMENTS COMPILED IN THE PAPER BOOK SUBMITTED BY THE ASSESSEE , WE FI ND THAT THE ASSESSEE TRUST HAS MANY SOCIO - DEVELOPMENT OBJECTIVES AIMED AT DIFFERENT CHARITABLE ACTIVITIES OF GENERAL PUBLIC UTILITY AS DESCRIBED IN THE TRUST DEED ITSELF. FURTHER, THE ASSESSEE TRUST RUNS AN EDUCATIONAL INSTITUTE BEING ONE OF THE MAJOR OBJ ECTIVES OF THE TRUST AND HAS STARTED MANAGEMENT COLLEGE BEING DULY APPROVED BY THE AICTE. THIS EDUCATIONAL ITA NO.041/CTK/2011 3 ACTIVITY CLEARLY CAME UNDER THE INCLUSIVE DEFINITION OF CHARITABLE PURPOSES AS DEFINED U/S.2(15) OF THE I.T.ACT,1961. IT WAS THE SUBMISSION OF THE LE ARNED AR OF THE ASSESSEE THAT THE ASSESSEE - TRUST WAS ENGAGED IN THESE CHARITABLE ACTIVIT IES WAS A FACT ON RECORDS ANNEXED TO THE APPLICATION IN FORM 10A SUBMITTED UNDER RULE 17 OF THE I.T.RULES,1962 BEFORE THE LEARNED CIT. AS PER THE PROVISIONS U/S.12AA, T HE CIT ON RECEIPT OF THE APPLICATION FOR REGISTRATION OF THE TRUST OR INSTITUTION MADE TO HIM, SHALL CALL FOR SUCH DOCUMENTS OR INFORMATION FROM THE TRUST OR INSTITUTION AS HE THINKS NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF ACTIVITIES OF THE TRUST OR INSTITUTION AND MAY ALSO MAKE SUCH INQUIRIES AS HE MAY DEEM NECESSARY IN THIS BEHALF. AFTER SATISFYING HIMSELF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES, HE SHALL PASS AN ORDER IN WRITING REGISTERI NG THE TRUST OR INSTITUTION. IF HE IS NOT SATISFIED ABOUT THE OBJECTS OF THE TRUST OR INSTITUTION AND GENUINENESS OF THE ACTIVITIES, HE SHALL PASS AN ORDER IN WRITING REFUSING TO REGISTER THE TRUST OR INSTITUTION AND COPY OF SUCH ORDER SHALL BE SENT TO THE APPLICANT. HERE IN THE INSTANT CASE ON HAND, THE LEARNED CIT HAS NOT EXAMINED THE DOCUMENTS PRODUCED ALONG WITH THE APPLICATION IN FORM 10A IN ORDER TO VERIFY THE GENUINENESS OF ACTIVITIES OF THE ASSESSEE TRUST. RATHER HE HAS REJECTED THE APPLICATION SEEK ING REGISTRATION INSISTING PRODUCTION OF BOOKS OF ACCOUNT, WHICH WERE TO SUPPORT THE APPLICATION OF FUNDS UTILISED FOR THE CHARITABLE PURPOSE AND WAS TO BE DEALT WITH THEREAFTER. 5. WE AGREE TO THE PROPOSAL OF THE LEARNED AR OF THE ASSESSEE THAT THE ISSUE BE DEALT WITH BY THE LEARNED CIT TO GRANT REGISTRATION U/S.12AA ON THE BASIS OF APPLICATION LYING WITH IT AFRESH. NEEDLESS TO SAY A REASONABLE OPPORTUNITY BE GRANTED TO THE ASSESSEE . 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON DT. 27 TH MAY, 2011 SD/ - SD/ - (K.S.S.PRASAD RAO) JUDICIAL MEMBER (K.K.GUPTA) ACCOUNTANT MEMBER DATE: 27 TH MAY, 2011 H.K.PADHEE, SENIOR PRIVATE SECRETARY. ITA NO.041/CTK/2011 4 COP Y OF THE ORDER FORWARDED TO : 1. THE APPELLANT: HUMAN DEVELOPMENT FOUNDATION , AT: PLOT NO.386/9, SAI ANANDAM COMPLEX, PATIA, BHUBANESWAR. 2. THE RESPONDENT: COMMISSIONER OF INCOME - TAX, BHUBANESWAR. 3. THE CIT, 4. THE CIT(A), 5. THE DR, CUTTACK 6. GU ARD FILE (IN DUPLICATE) TRUE COPY, BY ORDER, SENIOR PRIVATE SECRETARY.