Sanghvi Heeraben Jayantilal manilal Mehta Religious Trust, Ahmedabad V. The CIT (Exemption), Ahmedabad

ITA 442/AHD/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8639 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 23-03-2020
• Assessment Year: misc
• Appeal Filed On: 15-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SHARMA
• Keywords: Principle of natural justice
• Section: 12AA; 12; 11

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD (THROUGH VIRTUAL COURT) BEFORE HONBLE MR. JUSTICE P. P. BHATT, PRESIDENT & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 442/AHD/2019 SANGHVI HEERABEN JAYANTILAL MANILAL MEHTA RELIGIOUS TRUST 14/1 ST FLOOR BANK OF INDIA SOC, NR. SANT SCHOOL, HOTEL PRESIDENT STREET, NAVRANGPURA, AHMEDABAD - 380009 / VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS) 6 TH FLOOR, AAYKAR BHAVAN, VEJALPUR, NR. SACHIN TOWER, SHYAMAL, AHMEDABAD ./ ./ PAN/GIR NO. : AAQTS0052A ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI HARDIK VORA, A.R. / RESPONDENT BY : SHRI O. P. SHARMA, CIT.DR / DATE OF HEARING 20/07/2020 !'# / DATE OF PRONOUNCEMENT 29/07/2020 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE TRUST ARISING FROM THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), AHMEDABAD (CIT(E) IN SHO RT), DATED ITA NO. 442/AHD/19 [SANGHVI HEERABEN J. M. MEHTA RELIGIOUS TRUST VS. CIT(E)] - 2 - 22.02.2019 UNDER SECTION 12AA OF THE INCOME TAX ACT , 1961 (THE ACT HEREINAFTER). 2. AS PER ITS GROUNDS OF APPEAL, THE ASSESSEE IN ES SENCE HAS CHALLENGED THE ACTION OF THE CIT (EXEMPTIONS) IN RE JECTING THE APPLICATION FOR REGISTRATION OF THE ASSESSEE TRUST UNDER SECTION 12AA OF THE ACT AS WHOLLY ILLEGAL, UNLAWFUL AND AGA INST PRINCIPLES OF NATURAL JUSTICE. 3. WHEN THE MATTER WAS CALLED FOR HEARING BEFORE TH E TRIBUNAL, THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET REFE RRED TO THE IMPUGNED ORDER PASSED UNDER SECTION 12AA OF THE ACT WHEREBY THE APPLICATION FILED IN FORM NO.10A SEEKING APPROVAL U NDER SECTION 12AA OF THE ACT FOR AVAILING CONSEQUENTIAL BENEFIT UNDER SECTION 11 & 12 OF THE ACT WAS REJECTED AND POINTED OUT THAT T HE CIT(A) HAS WRONGLY RECORDED A FINDING THAT THE ASSESSEE HAS NO T FULLY COMPLIED WITH THE NOTICE CALLING FOR RELEVANT DOCUMENTS/DETA ILS. THE LEARNED COUNSEL POINTED OUT THAT THE ASSESSEE HAS FILED REL EVANT INFORMATION UNDER THE COVERING LETTER DATED 05.02.2019 IN OFFIC E TAPAL ON 12.02.2019. IT WAS POINTED OUT THAT THE MATERIAL P LACED BEFORE THE CIT (EXEMPTIONS) WAS NOT TAKEN INTO ACCOUNT WHILE A DJUDICATING THE REQUEST FOR REGISTRATION ADVERSE TO THE ASSESSEE. IT WAS STRONGLY URGED THAT THE ACTION OF THE CIT (EXEMPTIONS) IS TH US IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE, ON THE OTHER HAND, RELIED UPON THE ORDER OF THE LEARNE D CIT (EXEMPTIONS) UNDER CHALLENGE BUT HOWEVER, SUBMITTED IN THE SAME VAIN AND FAIRLY SO THAT THE MATTER MAY GO BACK TO T HE FILE OF CIT (EXEMPTIONS) FOR CONSIDERATION OF DOCUMENTARY EVIDE NCES CLAIMED ITA NO. 442/AHD/19 [SANGHVI HEERABEN J. M. MEHTA RELIGIOUS TRUST VS. CIT(E)] - 3 - TO HAVE BEEN PLACED BEFORE THE CIT (EXEMPTIONS) FOR APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. WITHOUT GOING INTO THE MERITS OF THE CASE, WE NOTICE AT THE OUTSET THAT THE ASSESSEE HAS STRONGLY CHALLENGED THE ACTION OF THE CIT (EXEMPTIONS) ON THE GROUNDS OF TRANSGRESSION OF NATURAL JUSTICE. IT IS A CASE OF THE ASSESSEE THAT RELEVANT DOCUMENTARY EVIDENCES WERE F ILED FOR THE SCRUTINY OF THE CIT(EXEMPTIONS) TO ENABLE HIM TO TA KE AN INFORMED DECISION ON THE APPLICATION FOR REGISTRATION IN FOR M NO.10A UNDER RULE 11AA OF THE INCOME TAX RULES TOGETHER WITH THE REGISTRATION CERTIFICATE ISSUED BY CHARITY COMMISSIONER. FROM T HE PAPER BOOK FILED BEFORE THE TRIBUNAL, WE OBSERVE THAT THE ASSE SSEE HAS PLACED CERTAIN DOCUMENTS AND EXPLANATIONS. THE CIT (EXEMP TIONS) HAS HOWEVER MADE REFERENCE TO CERTAIN DEFICIENCIES ON T HE PART OF ASSESSEE TRUST IN ITS ORDER PASSED UNDER SECTION 12 AA OF THE ACT. A PERUSAL OF THE IMPUGNED ORDER, HOWEVER, GIVES US AN IMPRESSION THAT THE CONTENTS OF THE AFORESAID COMMUNICATIONS HAVE N OT BEEN FULLY TAKEN INTO ACCOUNT WHILE REFUSING TO GRANT THE REGI STRATION SOUGHT. NEEDLESS TO SAY THE PUBLIC AUTHORITY FUNCTIONING IN QUASI-JUDICIAL CAPACITY IS EXPECTED TO CONFIRM TO THE BASIC PRINCI PLES OF NATURAL JUSTICE. IT APPEARS THAT THE CIT (EXEMPTIONS) HAS OMITTED TO CONSIDER THE SUBMISSIONS AND DOCUMENTS WARRANTING O UR INTERFERENCE. THE NON-CONSIDERATION OF EVIDENCES A ND EXPLANATIONS HAS CAUSED PREJUDICE TO THE INTEREST OF THE ASSESSE E TRUST. THE ASSESSEE ALSO APPEARED TO HAVE FAULTED IN FULLY EXP LAINING THE MATERIAL PLACED. WE THUS CONSIDER IT EXPEDIENT TO RESTORE THE ISSUE BACK TO THE FILE OF CIT (EXEMPTIONS) FOR FRESH CONS IDERATION OF THE APPLICATION FOR REGISTRATION IN ACCORDANCE WITH LAW , AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. IT SHALL B E OPEN TO CIT(EXEMPTIONS) TO CALL FOR SUCH DOCUMENTS, EVIDENC ES AS MAY BE ITA NO. 442/AHD/19 [SANGHVI HEERABEN J. M. MEHTA RELIGIOUS TRUST VS. CIT(E)] - 4 - CONSIDERED NECESSARY TO DISPOSE OF THE PETITION FOR REGISTRATION IN ACCORDANCE WITH LAW. NEEDLESS TO SAY THAT THE ASSES SEE SHALL CO- OPERATE EARNESTLY IN THE DE NOVO PROCEEDINGS BEFORE THE CIT(EXEMPTIONS) FOR THE PURPOSES OF DETERMINATION O F THE ISSUE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (JUSTICE P. P. BHATT) (PRADIP KUMAR KEDIA) PRESIDENT ACCOUNT ANT MEMBER AHMEDABAD: DATED 20/07/2020 TRUE COPY S. K. SINHA ! / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED ON 20/07/2020