Shri Purushottamlalji Gau Shala Trust, At : Chudva, Dist. Junagadh, RAJKOT-GUJARAT V. The Commissioner of Income Tax-III, RAJKOT-GUJARAT

ITA 457/RJT/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76435 (ITAT-RAJKOT)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-02-2014
• Assessment Year: misc
• Appeal Filed On: 27-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR M L MEENA
• Assessee Lawyers: D R ADHIA ITP
• Keywords: Principle of natural justice
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBULAL, SMC BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM ITA NO.457/RJT/2013 PURUSHOTTAMLALJI GAU SHALA TRUST, C/O. SHRI HARISHCHANDRA KIRITSINGH ZALA, AT. CHUDVA, TAL. MANAVADAR, DIST. JUNAGADH PAN : AALTS 3479 C ( / APPELLANT) THE COMMISSIONER OF INCOME-TAX-III RAJKOT / RESPONDENT / ASSESSEE BY SHRI D.R. ADHIA, I.T.P. / REVENUE BY DR M L MEENA, D.R. / DATE OF HEARING 25.02.2014 !'# / DATE OF PRONOUNCEMENT 26.02.2014 / ORDER THIS APPEAL BY THE ASSESSE-TRUST IS AGAINST THE ORD ER DATED 15.10.2013 OF COMMISSIONER OF INCOME-TAX, RAJKOT-III, RAJKOT REJE CTING THE APPLICATION OF THE ASSESSEE-TRUST FOR RECOGNITION U/S 80G(5) OF THE IN COME-TAX ACT, 1961. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE-TRUST CAME INTO EXISTENCE BY A BANDHARAN DATED 20.12.2010 AND THE TRUST WAS REGI STERED WITH THE CHARITY COMMISSIONER ON 28.01.2011. ON 25.03.2013 IT FILED AN APPLICATION WITH LD. COMMISSIONER OF INCOME-TAX, RAJKOT-III, RAJKOT FOR RECOGNITION U/S 80G(5) OF THE INCOME-TAX ACT. 3. IN THE IMPUGNED ORDER, LD. COMMISSIONER OF INCOM E-TAX, RAJKOT-III, RAJKOT REJECTED THE AFORESAID APPLICATION OF THE ASSESSEE- TRUST FOR RECOGNITION U/S 80G(5) ON THE GROUND THAT THE ASSESSEE HAS NOT FURNISHED CERT AIN DETAILS AND DOCUMENTS WHICH WERE REQUIRED VIDE LETTER DATED 12.09.2013. THE OTH ER REASON GIVEN BY THE LD. COMMISSIONER OF INCOME-TAX, RAJKOT-III, RAJKOT WHIL E REJECTING THE APPLICATION U/S 80G(5) IS THAT IN THE FINANCIAL YEAR 2010-11, THE ASSESSEE-TRUST HAS NOT SPENT 85% OUT OF THE TOTAL RECEIPT FOR THE OBJECTS OF THE TRU ST. AGGRIEVED WITH THIS ORDER OF LD. COMMISSIONER OF INCOME-TAX, RAJKOT-III, RAJKOT, THE ASSESSEE-TRUST IS IN APPEAL BEFORE THIS TRIBUNAL, ON THE FOLLOWING GROUNDS:- 2 457-RJT-2013 SHRI PURUSHOTTAMJI GAU SHALA TRUST ( SMC) 1. THE LD. COMMISSIONER OF INCOME-TAX HAS ERRED IN LAW AND FACTS IN REFUSING TO GRANT APPROVAL U/S 80G(5) OF THE INCOME -TAX ACT, 1961. THE TRUST DESERVES RECOGNITION U/S 80G(5). 2. THE LD. C.I.T. HAS ERRED IN COMING TO THE CONCLU SION THAT APPELLANT IS NOT FULFILLING THE CONDITION FOR APPROVAL OF THE PROVIS IONS OF SECTION 80G (5) OF THE I.T. ACT. THE TRUST DESERVES RECOGNITION U/S 80G(5) . 3. THE LD. C.I.T. HAS ERRED IN COMING TO THE CONCLU SION BASED ON IRRELEVANT ASPECT THAT THE TRUST HAS NOT CARRIED OUT ACTIVITIE S WHICH ENTITLE ITS FOR RECOGNITION U/S 80G(5) AS PER OBJECT OF THE TRUST. THE TRUST DESERVES RECOGNITION U/S 80G(5). 4. THE LD. C.I.T. HAS ERRED IN NOT CONSIDERING THE REAL ASPECT OF THE PROVISIONS OF SECTION 80G(5) OF THE IT ACT, 1961. T HE TRUST DESERVES RECOGNITION U/S 80G(5). 5. TAKING INTO CONSIDERATION THE LEGAL, FACTUAL AND STATUTORY ASPECT OF THE OBJECT OF THE TRUST, THE LD. C.I.T. OUGHT TO HAVE G RANTED RECOGNITION U/S 80G(5) AS APPLIED FOR. IT IS THEREFORE PRAYED THAT THE ORD ER PASSED BY THE LD. C.I.T. REFUSING TO GRANT RECOGNITION U/S 80G(5) MAY KINDLY BE CANCELLED AND HE MAY BE DIRECTED TO GRANT RECOGNITION U/S 80G(5) TO THE APPELLANT AS APPLIED FOR. 6. WITHOUT PREJUDICE, THE LD. CIT HAS ERRED IN NOT GRANTING ADEQUATE AND REASONABLE OPPORTUNITY. THE ORDER PASSED BY THE LD. CIT NEEDS CANCELLATION / RESTORATION TO CONSIDER A FRESH THAT THE TRUST DESE RVES RECOGNITION U/S 80G(5). 7. WITHOUT PREJUDICE, THE ORDER PASSED U/S 80G(5) I S BAD IN LAW DESERVES CANCELLATION. 8. THE APPELLANT CRAVES LEAVE TO ADD/ALTER/AMEND A ND/OR SUBSTITUTE ANY OR ALL GROUNDS OF APPEAL BEFORE THE ACTUAL HEARING TAK ES PLACE. 4. AT THE TIME OF HEARING, ON BEHALF OF THE ASSESSE E, SHRI D.R. ADHIA, I.T.P., APPEARED AND POINTED OUT THAT THE ASSESSEE-TRUST VI DE ADJOURNMENT APPLICATION DATED 19.09.2013 REQUESTED THE LD. CIT TO ADJOURN THE HEA RING FIXED ON 20.09.2013 TO SOME OTHER DATE AFTER 15.10.2013 AS THE ASSESSEES CHART ERED ACCOUNTANTS WERE BUSY IN PREPARATION OF AUDIT AND IT RETURN OF AUDITABLE CAS E UPTO 30.09.2013. HOWEVER, THE LD. CIT GRANTED ADJOURNMENT ON 11.10.2013. DUE TO THIS THE ASSESSEE COULD NOT COMPLY WITH THE DETAILS AS REQUIRED. WITHOUT PREJUDICE TO THIS, THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE-TRUST POINTED OUT TH AT AS PER THE JUDGMENT OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF O.P. JIN DAL GLOBAL UNIVERSITY (2013) 38 TAXMANN.COM 366 (P&H), WHILE GRANTING APPROVAL FOR EXEMPTION U/S 80G, OBJECT OF THE TRUST IS REQUIRED TO BE EXAMINED AND APPLICATIO N OF FUNDS CAN BE EXAMINED BY ASSESSING OFFICER AT THE TIME OF FRAMING ASSESSMENT . HE ACCORDINGLY PLEADED THAT LD. CIT BE DIRECTED TO GRANT RECOGNITION TO THE ASSESSE E-TRUST U/S 80G(5) OF THE INCOME- TAX ACT, 1961. 3 457-RJT-2013 SHRI PURUSHOTTAMJI GAU SHALA TRUST ( SMC) 5. AS AGAINST THIS, SHRI M.L. MEENA, DR, SUBMITTED THAT THE MATTER BE REMANDED TO THE FILE OF THE LD. CIT AND THE ASSESSEE-TRUST B E DIRECTED TO FURNISH ALL THE DETAILS AND DOCUMENTS AS REQUIRED BY LD. CIT VIDE LETTER DA TED 12.09.2013. 6. RIVAL SUBMISSIONS WERE CONSIDERED. IT APPEARS TH AT THE CHARTERED ACCOUNTANTS OF THE ASSESSEE-TRUST WERE BUSY IN PREPARATION OF A UDIT AND IT RETURN OF AUDITABLE CASE UPTO 30.09.2013 AND FOR THIS REASON, HE ASKED ADJOURNMENT FOR 15.10.2013. THIS WAS NOT ALLOWED. I, THEREFORE, IN THE INTEREST OF NATURAL JUSTICE, SET ASIDE THE IMPUGNED ORDER OF LD. COMMISSIONER OF INCOME-TAX, R AJKOT-III, RAJKOT AND DIRECT HIM TO RECONSIDER THE APPLICATION OF THE ASSESSEE-TRUST FOR RECOGNITION U/S 80G(5) OF THE INCOME-TAX ACT. THE ASSESSEE-TRUST IS ALSO DIRECTE D TO FURNISH ALL THE DETAILS AND DOCUMENTS AS REQUIRED BY THE LD. COMMISSIONER OF IN COME-TAX, RAJKOT-III, RAJKOT VIDE LETTER DATED 12.09.2013. 7. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL OF THE ASSESSEE IS TREATED AS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- ( $.. &' / T. K. SHARMA) ( ) /JUDICIAL MEMBER *)& +) ,/ ORDER DATE: 26.02.2014 !$ /RAJKOT *BT / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- SHRI PURUSHOTTAMLALJI GAU SHALA TRUS T, DIST. JUNAGADH 2. / RESPONDENT- THE COMMISSIONER OF INCOME-TAX, RAJK OT-III, RAJKOT 3. ,0,1 * * 2 / CONCERNED CIT, JUNAGADH 4 . 345 1, * 1#, !$ / DR, ITAT, RAJKOT 5 . 57 89 / GUARD FILE *)& / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT