Madhanandapuam Sai Samaj, Chennai V. CIT Exemptions, Chennai

ITA 416/CHNY/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8701 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 18-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S. BHARATH
• Keywords: Right to appeal; Condonation of delay; Set aside
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ ITA NO.416/CHNY/2019 /ASSESSMENT YEAR: 2015-16 MADHANANDAPURAM SAI SAMAJ, 99, MAHALINGAM STREET, SANTHOSH NAGAR, MADHANANDAPURAM, CHENNAI 600 125. [PAN: AADTM 8564G] VS. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI. ( /APPELLANT) ( &'( /RESPONDENT) ( / APPELLANT BY : MR. S. SRIDHAR, ADVOCATE &'( /RESPONDENT BY : MR. S. BHARATH, CIT /DATE OF HEARING : 15.07.2021 / DATE OF PRONOUNCEMENT : 27.07.2021 / O R D E R PER SHRI V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) , CHENNAI IN F NO.CIT(E)2(952)/2014-15 DATED 31.08.2015 RELEVANT T O THE ASSESSMENT YEAR 2015-16. I.T.A NO.416/CHNY/2019 :- 2 -: 2. THERE IS A DELAY OF 1190 DAYS IN FILING THE APP EAL, FOR WHICH, THE ASSESSEE HAS FILED AFFIDAVIT FOR CONDONATION OF DEL AY, WHEREIN HE HAS SUBMITTED REASONS AS UNDER: 2.THE APPLICATION FOR REGISTRATION UNDER SECTION 1 2AA FIELD BY THE TRUST IMMEDIATELY ON FORMATION HAD BEEN DECLINED BY THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) ON 31/8/201 5. THE TRUST DID NOT RECEIVE THE ORDER OF DENIAL OF REGIST RATION FOR A LONG TIME. THE TRUST GOT KNOWLEDGE ABOUT THE DENIAL OF R EGISTRATION ONLY WHEN HEARING FOR THE SCRUTINY ASSESSMENT FOR 2 016-2017 WAS IN PROGRESS. THE TRUST APPLIED FOR ISSUE OF A CERTI FIED COPY OF THE ORDER UNDER SECTION 12AA DECLINING THE REGISTRATION . THOUGHT THE APPEAL HAD BEEN FILED IMMEDIATELY ON GETTING THE CE RTIFIED COPY OF THE ORDER UNDER SECTION 12AA THERE IS A DELAY OF 1, 200 DAYS IN FILING THE APPEAL RECKONING THE DUE DATE FROM THE D ATE OF ORDER AS THE PRESUMPTIVE DATE OF SERVICE. . THE DELAY IN FIL ING THE APPEAL WAS CAUSED FOR REASONS BEYOND THE CONTROL OF THE TR UST AND THEY ARE LISTED BELOW. 3.1 ENGAGED AUDITOR SRI.AYYAPPAN CHARTERED ACCOUNTANT,K.K.NAGAR,CHENNAI TO APPLY FOR REGISTRAT ION OF THE TRUST IMMEDIATELY ON FORMATION OF THE TRUST BEFORE THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) CHENNAI. 4. SRI. AYYAPPAN ACCORDINGLY FILED THE APPLICATION FOR REGISTRATION AND FOLLOWED THE SAME WITH ALL DILIGEN CE AND COMPLIED WITH ALL THE LETTERS OF THE DEPARTMENT. 5. SRI. AYYAPPAN APPEARED WITHOUT FAIL ON THE TWO H EARING DATES AND FILED THE DETAILS CALLED FOR . 6. THE TRUST DID NOT RECEIVE ANY FURTHER COMMUNICAT IONS AND SUDDENLY THE TRUST CAME TO KNOW ABOUT THE DENIAL OF REGISTRATION ONLY WHEN THE CASE FOR 2016-2017 WAS TAKEN UP FOR S CRUTINY. 7. SRI. AYYAPPAN HAD DISAPPEARED AND HE COULD NOT B E TRACED NOW. THE TRUST DID NOT KNOW THE STATUS OF THE APPLI CATION FOR REGISTRATION TILL THE ASSESSING OFFICER INTIMATED T HE TRUST OF THE DENIAL OF REGISTRATION DURING THE COURSE OF THE SCR UTINY ASSESSMENT. 8.I APPLIED FOR ISSUE OF A CERTIFIED COPY OF THE O RDER UNDER SECTION 12AA AND IMMEDIATELY ON RECEIPT OF THE CERT IFIED COPY AN APPEAL HAD BEEN FILED BEFORE THE HONORABLE TRIBUNAL . UNDER THE CIRCUMSTANCES THE TRUSTEE SUBMITS THAT TH E HONOURABLE TRIBUNAL MAY BE PLEASED TO CONDONE THE APPARENT DEL AY OF 1190 I.T.A NO.416/CHNY/2019 :- 3 -: DAYS IN FILING THE APPEAL AS SEEN FROM THE ORDER OF THE COMMISSIONER (EXEMPTIONS ) AND DISPOSE OF THE APPEA L IN THE MANNER LAID DOWN UNDER LAW. WE HAVE GONE THROUGH THE AFFIDAVIT FILED BY THE AS SESSEE. WE FIND THAT IT IS A SUFFICIENT CAUSE TO CONDONE THE DELAY OF 1190 DAYS IN FILING OF THE APPEAL. 3. IN THIS CONTEXT, THE HONBLE HIGH COURT OF ANDHR A PRADESH IN THE CASE OF M/S. MERIDIAN PROMOTERS P. LTD. VS. DCIT IN ITTA NO.157/2019, DATED 18.10.2019 BY FOLLOWING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF COLLECTOR, LAND ACQUISITION, ANANTNAG V. MST. KATIJ I , WHEREIN IT HAS OBSERVED AS UNDER: WHILE CONSIDERING THE APPLICATIONS FOR CONDONATION OF DELAY, WHAT IS TO BE SEEN IS WHETHER THE INTEREST O F THE REVENUE WILL STAND PROTECTED, EVEN WHILE RECOGNIZING THE RIGHT O F THE ASSESSEE TO EXERCISE THE STATUTORY REMEDIES AVAILABLE TO THE ASSESSEE AND THE STATUTORY RIGHT OF APPEAL CANNOT BE MADE REDUND ANT BY DISMISSING THE APPLICATION FOR CONDONATION OF DELAY AND REJECTING THE APPEAL ON TECHNICAL GROUNDS. IN OUR CONSIDERED VIEW WHEN SUBSTANTIAL JUSTICE AND TECHNICAL CONSIDERATIONS AR E PITTED AGAINST EACH OTHER, CAUSE OF SUBSTANTIAL JUSTICE DESERVES T O BE PREFERRED, AS HELD BY THE SUPREME COURT IN COLLECTOR, LAND ACQ UISITION, ANANTNAG V. MST. KATIJI'. WE, THEREFORE RESPECTFULLY FOLLOWING THE ABOVE DEC ISION OF THE HONBLE ANDHRA PRADESH HIGH COURT, WE ARE OF THE OP INION THAT DELAY HAS TO BE CONDONED. ACCORDINGLY, THE DELAY IS CON DONED. 4. SO FAR AS THE MERITS OF THE CASE IS CONCERNED, T HE ASSESSEE-TRUST HAS FILED AN APPLICATION IN FORM NO.10 FOR REGISTRA TION U/S. 12AA OF THE INCOME TAX ACT, 1961 (HEREAFTER THE ACT) ON 24.02 .2015. THE LD. I.T.A NO.416/CHNY/2019 :- 4 -: CIT(EXEMPTIONS) CALLED CERTAIN DETAILS AND CLARIFIC ATIONS AND THERE IS NO RESPONSE FROM THE ASSESSEE THEREFORE, REJECTED THE CLAIM MADE BY THE ASSESSEE FOR REGISTRATION U/S. 12AA OF THE ACT. WE FIND THAT IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO SUBSTANTIATE HIS CASE BEFORE THE LD. CI T(EXEMPTIONS). ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE L D. CIT(EXEMPTIONS) AND REMIT THE ISSUES BACK TO THE FILE OF LD. CIT(EX EMPTIONS) TO DECIDE THE ISSUE DE NOVO IN ACCORDANCE WITH LAW. ACCORDINGLY, THIS APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 27 TH JULY, 2021 IN CHENNAI. SD/- SD/- ( ) (G. MANJUNATHA) /ACCOUNTANT MEMBER ( ) (V. DURGA RAO) /JUDICIAL MEMBER /CHENNAI, /DATED: 27 TH JULY, 2021 . EDN/- /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF