Vrindavan Charitable Trust, Kolkata V. C.T.I.(Exemption), Kolkata

ITA 423/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0136 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 05-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K NAYAK
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENC H KOLKATA BEFORE SHRI A.T.VARKEY, JM &DR. A.L.SAINI, AM ./ITA NO.423/KOL/2019 ( / ASSESSMENT YEAR: ) VRINDAVAN CHARITABLE TRUST 12, WATERLOO STREET, 3 RD FLOOR, KOLKATA-700069 VS. CIT(EXEMPTION), KOLKATA ./ ./PAN/GIR NO.: AACTV 2990 C (APPELLANT) .. (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI A.K. NAYAK, CIT DR / DATE OF HEARING : 16/12/2019 /DATE OF PRONOUNCEMENT : 31/12/2019 / O R D E R PER A.L. SAINI, AM: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (EXEMPTION )- KOLKATA PASSED U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 (IN SHOR T THE ACT) DATED 26/02/2019. 2. AT THE TIME OF HEARING NONE APPEARED ON BEHALF O F ASSESSEE IN SPITE OF ISSUANCE OF NOTICE FOR HEARING MORE THAN ONE OCCASION AND LD . DEPARTMENTAL REPRESENTATIVE(DR), WAS PRESENT FOR THE APPELLANT R EVENUE. IN THE ABSENCE OF ANY APPEARANCE BY THE ASSESSEE, THE APPEAL IS BEING DIS POSED OF EX PARTE QUA THE VRINDAVAN CHARITABLE TRUST ITA NO.423/KOL/2019 P PP PA AA AG GG GE EE E | || | 2 22 2 ASSESSEE, AFTER HEARING LD. DR FOR THE REVENUE ON M ERITS IN TERMS OF RULE 24 OF THE INCOME TAX APPELLATE, TRIBUNAL, RULES, 1963. 3. AT THE OUTSET ITSELF, WE NOTE THAT THE LD. CIT(E ) HAS NOT CONSIDERED THE EVIDENCE AND WRITTEN SUBMISSION MADE BY ASSESSING OFFICER, A ND DENIED THE REGISTRATION U/S 12AA OF THE ACT. THE MAIN GRIEVANCE OF THE ASSESSEE WHICH IS MENTIONED IN THE GROUNDS OF APPEAL ARE AS FOLLOWS: 2. THAT THE LEARNED COMMISSIONER (EXEMPTIONS) HAS N OT CONSIDERED THE INFORMATION / EVIDENCE BROUGHT ON RECORDS, WHILE D ENYING THE REGISTRATION U/S 12AA OF THE ACT. 3. THAT THE LEARNED COMMISSIONER (EXEMPTIONS) HAS N OT CONSIDERED THE REPLY TO THE LETTERS DATED 11.02.2019 AND 19.02.20 19 WHILE THE SUBMISSIONS REACHED HIS OFFICE ON 19.02.2019 AND 19.02.2019 RES PECTIVELY AS PER DEPARTMENT ONLINE RECORDS. 4. THAT THE LEARNED COMMISSIONER (EXEMPTION) HAS NO T GIVEN OPPORTUNITY OF BEING HEARD AS REQUIRED BY THE PROVISO TO SECTIO N 12AA(1)(B)(II) BEFORE REFUSING TO REGISTER THE TRUST. 4. WE HEARD LD. D.R. FOR THE REVENUE AND PERUSED T HE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE LD. CIT(E) DID NOT DISCUSS THE ASS ESSEES CASE ON MERITS BASED ON THE EVIDENCE AND WRITTEN SUBMISSIONS FILED BY THE A SSESSEE, HENCE IT IS A VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. WE NOTE THAT IT IS SETTLED LAW THAT PRINCIPLES OF NATURAL JUSTICE AND FAIR PLAY REQUIRE THAT THE EFFE CTED PARTY IS GRANTED SUFFICIENT OPPORTUNITY OF BEING HEARD TO CONTEST HIS CASE. ACC ORDING TO US, THE LD. CIT(E) OUGHT TO HAVE CONSIDERED EVIDENCES AND WRITTEN SUBM ISSIONS MADE BY THE ASSESSEE. IN ADDITION TO THIS, THE LD. CIT(E) DID NOT ADJUDIC ATE THE ISSUE ON MERITS. CONSIDERING THIS FACTUAL POSITION WE ARE OF THE VIE W THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO PLEAD HIS CASE B EFORE LD. CIT(E). THEREFORE, WITHOUT DELVING MUCH DEEPER INTO THE MERITS OF THE CASE, IN THE INTEREST OF JUSTICE, WE RESTORE THE MATTER BACK TO THE FILE OF LD. CIT(E ) FOR DE NOVO ADJUDICATION AND PASS A SPEAKING ORDER AFTER AFFORDING SUFFICIENT OP PORTUNITY OF BEING HEARD TO THE ASSESSEE, WHO IN TURN, IS ALSO DIRECTED TO CONTEST HIS STAND FORTHWITH. THEREFORE, WE DEEM IT FIT AND PROPER TO SET ASIDE THE ORDER OF TH E LD. CIT(E) AND REMIT THE MATTER VRINDAVAN CHARITABLE TRUST ITA NO.423/KOL/2019 P PP PA AA AG GG GE EE E | || | 3 33 3 BACK TO THE FILE OF THE LD. CIT(E) TO ADJUDICATE TH E ISSUE AFRESH ON MERITS. FOR STATISTICAL PURPOSES, THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 31. 12.2019 SD/- ( A.T.VARKEY ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; / DATE: 31/12/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. VRINDAVAN CHARITABLE TRUST 2. CIT(E)-KOLKATA 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES