Josh Shiksha Foundation, Pune V. Commissioner of Income-tax -(Exemption), Pune

ITA 424/PUN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4877 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 12-10-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 18-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Keywords: Opportunity of being heard
• Section: 12AA; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI INTURI RAMA RAO, AM AND SHRI S. S. VISWANETHRA RAVI, JM . / ITA NO.424/PUN/2019 JOSH SHIKSHA FOUNDATION, C/404, NIVEDITA TERRACE, KEDARI PETROL PUMP, WANAWADI, PUNE-411040. PAN : AADCJ8608D ....... / APPELLANT / V/S. CIT (EXEMPTION), PUNE. / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI K. K. MISHRA / DATE OF HEARING : 12.10.2020 / DATE OF PRONOUNCEMENT : 13.10.2020 / ORDER PER INTURI RAMA RAO, AM: THIS IS AN APPEAL FILED BY THE ASSESSEE TRUST AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION), PUNE DATED 19.02.2019 PASSED U/S 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) DENYING THE REGISTRATION U/S 12AA OF THE ACT. 2. THE APPELLANT RAISED THE FOLLOWING GROUND :- OPPORTUNITY OF BEING HEARD NOT GRANTED. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER :- THE APPELLANT IS A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013 VIDE A REGISTRATION NUMBER U80902PN2016NPL166609 DATED 28.09.2016. THE APPELLANT COMPANY FILED FORM 10A FOR REGISTRATION OF 2 ITA NO.424/PUN/2019 THE TRUST U/S 12AA OF THE ACT ON 10.08.2018. ON RECEIPT OF THE SAID APPLICATION, LD. COMMISSIONER OF INCOME TAX (EXEMPTION) HAD CALLED UPON THE APPLICANT THROUGH ITBA PORTAL ON 14.08.2018 TO FURNISH CERTAIN INFORMATION. IN RESPONSE TO THE SAME, THE APPELLANT UPLOADED THE INFORMATION ON 25.09.2018. ON PERUSAL OF THE SAID SUBMISSION, LD. COMMISSIONER OF INCOME TAX (EXEMPTION) HAD CONCLUDED THAT NO INFORMATION HAD BEEN SUBMITTED, AS REGARDS TO THE DETAILS OF CHARITABLE ACTIVITIES CARRIED OUT IN LAST THREE YEARS AND ACCORDINGLY THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) HAD FINALLY HELD THAT THE GENUINENESS OF THE CHARITABLE ACTIVITIES CARRIED OUT IN LAST THREE YEARS WAS NOT ESTABLISHED AND, THEREFORE, REJECTED THE GRANT OF REGISTRATION U/S 12AA OF THE ACT VIDE ORDER NO.ITBA/EXM/S/EXM1/2018- 19/1015104904(1) DATED 19.02.2019. 4. BEING AGGRIEVED BY THE ORDER OF LD. COMMISSIONER OF INCOME TAX (EXEMPTION), THE APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. DESPITE DUE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE. ON THE OTHER HAND, LD. CIT-DR SUBMITTED THAT IN THE ABSENCE OF INFORMATION I.E. AS TO TRUE NATURE OF THE ACTIVITIES CARRIED OUT BY THE ASSESSEE, THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) WAS JUSTIFIED IN REJECTING THE GRANT OF REGISTRATION U/S 12AA OF THE ACT. HE ACCORDINGLY PLEADED FOR UPHOLDING THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION). 5. WE HAVE HEARD THE LD. CIT-DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF THE IMPUGNED ORDER IT WOULD SUGGEST THAT THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) CALLED FOR CERTAIN INFORMATION IN ORDER TO SATISFY HIMSELF, THAT THE ACTIVITIES OF THE TRUST ARE GENUINE OR NOT. IT APPEARS THAT THE APPELLANT TRUST HAD FAILED TO COMPLY WITH THE SAID NOTICE, BUT FROM THE PERUSAL OF THE IMPUGNED ORDER IT IS NOT CLEAR THAT WHETHER THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) HAD GRANTED REASONABLE OPPORTUNITY OF BEING HEARD SINCE THE IMPUGNED ORDER MENTIONED ONLY ONE DATE OF HEARING 3 ITA NO.424/PUN/2019 NOTICE. FURTHERMORE, THE HONBLE SUPREME COURT IN THE CASE OF ANANDA SOCIAL AND EDUCATIONAL TRUST VS. CIT, 272 TAXMAN 7 HELD THAT EVEN IN THE ABSENCE OF ANY ACTIVITIES A TRUST CAN BE CONSIDERED FOR REGISTRATION U/S 12AA OF THE ACT AND THE TERM ACTIVITIES CONTEMPLATED U/S 12AA OF THE ACT INCLUDES PROPOSED ACTIVITIES. AT THE TIME OF GRANT OF REGISTRATION, THE ONLY ISSUE TO BE EXAMINED BY THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) IS REGARDING THE TRUE NATURE OF THE OBJECTS OF THE TRUST I.E. WHETHER THE CHARITABLE IN NATURE OR NOT. IN THE LIGHT OF THE DICTUM LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF ANANDA SOCIAL AND EDUCATIONAL TRUST (SUPRA), WE ARE OF THE CONSIDERED OPINION THAT THE MATTER REQUIRES REMAND TO THE LD. COMMISSIONER OF INCOME TAX (EXEMPTION) TO RE-EXAMINE THE ISSUE OF GRANT OF REGISTRATION U/S 12AA OF THE ACT AFTER AFFORDING THE REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELLANT. IN THE CIRCUMSTANCES, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 13 TH DAY OF OCTOBER, 2020. SD/- SD/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 13 TH OCTOBER, 2020. SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT (EXEMPTION), PUNE. 4 . , , , / DR, ITAT, A BENCH, PUNE. 5. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.