Indian Polo Association, New Delhi V. DIT(E), New Delhi

ITA 4140/DEL/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 7237 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 23-08-2010
• Assessment Year: misc
• Appeal Filed On: 21-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MONA MOHANTY
• Assessee Lawyers: SEKHON
• Keywords: Opportunity of being heard; Set aside
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH `C : NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER I.T.A.NO.4140/DEL/2009 FINANCIAL YEAR : N.A. INDIAN POLO ASSOCIATION, DIRECTOR OF INCOME-TAX C/O B-SQUADRON, 61, CAVALRY, VS. (EXEMPTIONS ), DELHI. CARIAPPA MARG, DELHI CANTT, NEW DELHI. PAN: AAATI3705Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M .S. SEKHON, CA. RESPONDENT BY : SMT. MON A MOHANTY, SR. DR. O R D E R PER A.K. GARODIA, ACCOUNTANT MEMBER. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDE R PASSED BY THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), DELHI, DATED 1 8.09.2009 UNDER SECTION 80G(5)(VI) OF THE INCOME-TAX ACT, 1961 (THE ACT) RE AD WITH RULE 11AA OF THE INCOME-TAX RULES, 1962. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: - 1. THAT THE LEARNED DIRECTOR OF INCOME TAX (EXEMPT IONS) DELHI, HAS ERRED IN DECLINING TO GRANT RENEWAL OF E XEMPTION UNDER SECTION 80G OF THE INCOME TAX ACT, 1961, BEYO ND 31.03.2009. 2 2. THAT THE ORDER OF THE LEARNED DIT(EXEMPTIONS) IS BAD IN LAW AND ON THE FACTS OF THE CASE. 3. FACTS ARE THAT THE ASSESSEE FILED AN APPLICATION ON 01.04.2009 IN FORM NO.10G SEEKING RENEWAL OF EXEMPTION UNDER SEC. 80G OF THE INCOME-TAX ACT, 1961. THE LEARNED DIT(E) ASKED THE ASSESSEE T O FURNISH VARIOUS DOCUMENTS/EXPLANATIONS INCLUDING A NOTE ON ACTIVITI ES OF THE TRUST DURING LAST 3 YEARS ALONG WITH THE SUPPORTING DOCUMENTARY EVIDE NCES AND TO JUSTIFY WITH THE BILLS AND VOUCHERS OF THE INCOME APPLIED FOR CH ARITABLE ACTIVITIES ALONG WITH PROOF OF BENEFICIARIES ETC. IT IS NOTED BY TH E DIT(E) THAT THE ACTIVITIES OF THE ASSESSEE COME UNDER THE LAST LIMB OF SEC. 2( 15) OF THE INCOME-TAX ACT AND IN SUCH CASES THE PROVISO OF SEC. 2(15) IS APPL ICABLE WITH EFFECT FROM A.Y. 2009-2010. IT IS OBSERVED BY THE LEARNED DIT( E) IN PARA 4 OF THE ORDER THAT THE ASSESSEE IS CHARGING FEES FOR RENDERING SE RVICES AND ALL ACTIVITIES ARE BEING RUN ON PURELY COMMERCIAL LINES AND NO CHARITY IS SEEM TO BE UNDERTAKEN AND HENCE, SUCH ACTIVITIES ARE COVERED B Y THE PROVISO TO SEC. 2(15) OF THE ACT. IT IS FURTHER OBSERVED BY THE LE ARNED DIT(E) THAT THE ASSESSEE HAS ALSO FAILED TO JUSTIFY THE ACTIVITY WI TH THE BILLS/VOUCHERS, BANK ACCOUNTS AND PROOF OF BENEFICIARIES. IN THIS MANNE R, HE REJECTED THE REQUEST OF THE ASSESSEE FOR RENEWAL OF EXEMPTION UNDER SEC. 80G OF THE ACT. 4. NOW THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3 5. IT IS SUBMITTED BY THE LEARNED AR FOR THE ASSESS EE THAT THE LEARNED DIT(E) WAS NOT JUSTIFIED IN REFUSING THE REQUEST OF THE ASSESSEE FOR GRANT OF RENEWAL OF EXEMPTION UNDER SEC. 80G OF THE ACT. WH EN IT WAS POINTED OUT BY THE BENCH THAT AS OBSERVED BY THE LEARNED DIT(E) IN PARA 5 OF HIS ORDER, THE ASSESSEE HAS FAILED TO JUSTIFY THE ACTIVITIES W ITH THE BILLS/VOUCHERS, BANK ACCOUNTS AND PROOF OF BENEFICIARIES, IT WAS SUBMITT ED BY THE LEARNED AR FOR THE ASSESSEE THAT APART FROM ISSUING LETTER DATED 0 2.09.2009, NO FURTHER QUERY WAS RAISED BY HIM AND IF ANY FURTHER CLARIFICATION IS REQUIRED, THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LEARNED DIT(E). THE LEARNED DR FOR THE REVENUE SUPPORTED THE ORDER OF THE LEARNED DIT(E). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT IT IS OBSERVED BY THE LEARNED DIT(E) IN HIS ORDER THAT THE LETTER DATED 02.09.2009 WAS ISSUED TO THE ASSESSEE REQUESTING FOR CERTAIN DOCUM ENTS. IT IS FURTHER NOTED BY HIM THAT THE REPLY WAS RECEIVED BY DAK COUNTER W HERE THE ASSESSEE HAS SUBMITTED PART DETAILS. NO FURTHER QUERY WAS RAISE D BY THE LEARNED DIT(E) AND IT IS OBSERVED BY HIM THAT THE ASSESSEES ACTIV ITIES ARE NOT EXEMPT AS PER THE PROVISO TO SEC. 2(15) OF THE ACT WHICH IS SAID TO BE APPLICABLE TO THE ASSESSEE FOR THE FIRST TIME FROM A.Y. 2009-2010. I T IS ALSO OBSERVED BY HIM THAT THE ASSESSEE HAS FAILED TO JUSTIFY THE ACTIVIT IES WITH THE BILLS/VOUCHERS, BANK ACCOUNTS AND PROOF OF BENEFICIARIES. ON THESE FACTS, WE ARE OF THE 4 CONSIDERED VIEW THAT THE MATTER SHOULD GO BACK TO T HE FILE OF THE LEARNED DIT(E) FOR FRESH HEARING. THE ASSESSEE DESERVES TO BE GIVEN MORE OPPORTUNITY TO PRESENT ITS CASE BEFORE HIM AND HENC E WE SET ASIDE THE ORDER OF THE DIT(E) AND RESTORE THE MATTER BACK TO HIS FI LE FOR FRESH DECISION AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE. WE WANT TO MAKE IT CLEAR THAT THE ASSESSEE HAS TO FURNISH NECE SSARY DOCUMENTS AND EVIDENCES BEFORE THE LEARNED DIT(E) TO REPRESENT IT S CASE AND THE LEARNED DIT(E) THEREAFTER WILL PASS NECESSARY ORDER AS PER LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON AUGUST, 2010. (C.L. SETHI) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: AUGUST, 2010. COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR BY ORDER *MG DEPUTY REGISTRAR, ITAT.