M/s Loknayak Foundation, Visakhapatnam V. The Commissioner of Income Tax-1, Visakhapatnam

ITA 439/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2605 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-12-2010
• Assessment Year: misc
• Appeal Filed On: 01-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K SINGH
• Assessee Lawyers: N O N E
• Section: 80G

Judgement Text

ITA 439/VIZ/2010 LOK NAYAK FOUNDATION, VSKP IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 439 /VIZAG/ 20 10 ASSESSMENT YEAR : N.A. M/S. LOKNAYAK FOUNDAT ION VISAKHAPATNAM CIT - 1 VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AAATL 2399D APPELLANT BY: N O N E RESPONDENT BY: SHRI R.K. SINGH, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER : - THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE OR DER OF THE CIT ON A SOLITARY GROUND THAT CIT IS NOT CORRECT IN OVERLOOKING THE SUBMISSIONS OF THE ASSESSEES, WHEREIN, IT WAS SUBMITTED THAT APPLICATION FILED IN FORM 10G FOR RENEWAL OF REGISTRATION U/S 80G IS REDUNDANT IN VIEW OF THE CHANGE IN THE PROVISIO NS OF THE STATUTE BROUGHT IN BY THE FINANCE ACT. THIS APPEAL CAME UP FOR HEARING ON 1 ST DECEMBER, 2010 BUT NONE APPEARED ON BEHALF OF THE ASSESSEES. WE THEREFORE, HAD NO OPTION BUT TO HEAR THE APPEAL EX - PARTE. ACCORDINGLY, THE REVENUE WAS HEARD. 2. WE HAVE CAREFULLY EXAMINED THE ORDER OF THE CIT AND WE FIND THAT ASSESSEE HAS RAISED A SPECIFIC PLEA BEFORE THE CIT THAT AS PER THE AMENDED PROVISIONS OF SECTION 80G(5) OF THE I.T. ACT, EXISTING APPROVALS EXPIRING ON OR AFTER 1.10.2009 WILL BE DEEMED TO HAVE BEEN EXTENDED IN PERPETUITY UNLESS SPECIFICALLY DRAWN. IT WAS ALSO STATED BEFORE THE CIT THAT SINCE THE EXPIRY OF THE PERIOD EARLIER GRANTED WOULD BE EXPIRING ON 31 ST MARCH, 2010 WHICH IS AFTER 1.10.2009, IT WOULD BE DEEMED THAT THE APPROVAL HAVE BEEN GIV EN UNDER I.T. ACT. THIS ARGUMENT OF THE ASSESSEE WAS NOT CONSIDERED BY THE CIT WHILE REJECTING THE REQUEST FOR RENEWAL OF RECOGNITION OF EXEMPTION U/S 80G(5)(VI) OF THE ACT. CIT HAS TURNED DOWN THE REQUEST ONLY FOR THE REASON THAT TRUST DID NOT FILE THE RELEVANT PARTICULARS FOR GRANTING EXEMPTION. WHEN THE ITA 439/VIZ/2010 LOK NAYAK FOUNDATION , VSKP 2 ASSESSEE HAS RAISED A SPECIFIC PLEA BEFORE THE CIT, THE CIT SHOULD HAVE ADJUDICATED THAT ISSUE WHILE REJECTING THE CLAIM OF THE ASSESSEE. WE THEREFORE OF THE VIEW THAT CIT HAS NOT PROPERLY EXAMINED TH E STAND OR THE ARGUMENTS RAISED BY THE ASSESSEES. WE THEREFORE, SET ASIDE HIS ORDER AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO RE - EXAMINE THE ISSUE OF RENEWAL OF RECOGNITION OF EXEMPTION U/S 80G(5) OF THE ACT IN THE LIGHT OF THE STAND TAKEN BY THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO EXTEND ALL CO - OPERATION TO THE CIT IN ADJUDICATING THE ISSUE AND ALSO TO FURNISH THE RELEVANT INFORMATION ON WHICH IT INTEND TO RELY AND ALL THOSE INFORMATION WHICH ARE BEING SOUGHT BY THE CIT. 3. IN THE RE SULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 07.2. 20 10 SD/ - SD/ - (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISA KHAPATNAM, DATED 7 TH DECEMBER , 20 10 COPY TO 1 M/S. LOKNAYAK FOUNDATION, C/O SRI C. SUBRAHMANYAM, FCA, CHARTERED ACCOUNTANT, 102, LAKSHMI APARTMENT, FACOR LAYOUT, WALTAIR UPLANDS, VISAKHAPATNAM - 530 003. 2 THE CIT - 1, VISAKHAPATNAM 3 THE CIT (A) , VISAKHAPATNAM 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM