M/s Mahavir International Service Trust., Visakhapatnam V. The CIT, -, Visakhapatnam

ITA 472/VIZ/2007

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7117 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 21-11-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Assessee Lawyers: C V S MURTHY
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80G; 12A; 12AA

Judgement Text

ITA NO 472 OF 2007 AND 86 OF 2011 MAHAVIR INTERNAT IONAL TRUST, VISAKHAPATNAM PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 472 /VIZAG/20 07 ASSESSMENT YEAR: NA M/S MAHAVIR INTERNATIONA L SERVICE, VISAKHAPATNAM VS. CIT, VISAKHAPATNAM (APPELLANT) PAN NO: AABTM 9014 F (RESPONDENT) ITA NO. 86/VIZAG/2011 ASSESSMENT YEAR: NA M/S MAHAVIR INTERNATIONAL SERVICE, VISAKHAPATNAM VS. CIT, VISAKHAPATNAM (APPELLANT) PAN NO: AABTM 9014 F (RESPONDENT) APPELLANT BY: SHRI C.V.S. MURTHY, CA RESPONDENT BY: SHRI D.S. SUNDER SINGH, SR.DR ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECTE D AGAINST THE ORDER DATED 19-9-2007 PASSED BY LEARNED CIT-1, VISAKHAPATNAM BY REJECTING THE APPLICATIONS FILED BY THE ASSESSEE SEEKING REGISTRATION UNDER SECTION 12A AND RECOGNITION UNDER SECTION 80G OF THE ACT. 2. THE FACTS RELATING TO THE CASE ARE STATED IN BRI EF. THE ASSESSEE TRUST WAS FORMED ON 14-5-2007 THROUGH A TRUST DEED. IT FILED ITA NO 472 OF 2007 AND 86 OF 2011 MAHAVIR INTERNAT IONAL TRUST, VISAKHAPATNAM PAGE 2 OF 4 APPLICATIONS WITH THE LEARNED CIT 1, VISAKHAPATNA M ON 21.5.2007 SEEKING REGISTRATION UNDER SECTION 12A OF THE ACT A ND RECOGNITION UNDER SECTION 80G OF THE ACT. THE LEARNED CIT DIREC TED THE ASSESSING OFFICER TO VERIFY GENUINENESS OF THE ACTIVITIES OF THE TRUST. THE ASSESSEE DID NOT RESPOND TO THE LETTERS ISSUED BY T HE ASSESSING OFFICER AND HENCE THE ASSESSING OFFICER SUGGESTED THE CIT T O REJECT THE APPLICATIONS FILED BY THE ASSESSEE. THE LEARNED CIT AGAIN AFFORDED AN OPPORTUNITY TO THE ASSESSEE ON 17-9-2007. ON THAT D AY, THE SECRETARY OF THE TRUST ALONG WITH ITS AUDITOR APPEARED BEFORE THE LEARNED CIT AND SINCE THE ASSESSEE DID NOT FILE ANY DETAIL, THE LEARNED CIT REJECTED BOTH THE APPLICATIONS OF THE ASSESSEE. AGGRIEVED BY HIS ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 3. ACCORDING TO THE LEARNED AUTHORISED REPRESENTATI VE THE ASSESSEE, WHILE FILING THE APPLICATIONS, HAS SUBMIT TED ALL THE RELEVANT DOCUMENTS. HOWEVER, DUE TO SOME COMMUNICATION GAP, THE ASSESSEE TRUST COULD NOT RESPOND TO THE LETTERS ISSUED BY TH E ASSESSING OFFICER. THE LEARNED AUTHORISED REPRESENTATIVE ALSO SUBMITTE D THAT THE ASSESSEE WAS READY WITH FURTHER DETAILS WHEN IT APP EARED BEFORE THE LEARNED CIT. ACCORDINGLY IT WAS REQUESTED THAT THE LEARNED CIT SHOULD BE DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE, BY DRAWING OUR ATTENTION TO THE OBSERVATIONS OF THE LEARNED CIT, SUBMITTED THAT THE ASSESSEE DID NOT RESPOND TO THE LETTERS ISSUED BY THE ASSESSING OFFICER AND DID NOT FILE THE DETAILS THAT WERE CALLED FOR. ACCORDINGLY HE SUBMITTED THAT THE ORDER OF THE LEARNED CIT SHOULD BE UPHELD. ITA NO 472 OF 2007 AND 86 OF 2011 MAHAVIR INTERNAT IONAL TRUST, VISAKHAPATNAM PAGE 3 OF 4 4. WE HAVE HEAD THE PARTIES AND PERUSED THE RECORD. IT IS NOTICED THAT THE ASSESSEE TRUST WAS FORMED ON 14-3-2007 AND WITHIN A WEEK IT FILED APPLICATIONS BEFORE THE LEARNED CIT. HOWEVER , FOR THE REASONS BEST KNOWN TO THE ASSESSEE, IT COULD NOT RESPOND TO THE LETTERS ISSUED BY THE ASSESSING OFFICER. BEFORE US, IT WAS SUBMITT ED THAT THE ASSESSEE WAS READY WITH THE DETAILS WHEN IT APPEARE D BEFORE THE LEARNED CIT. FOR THE PURPOSE OF GRANTING REGISTRAT ION UNDER SECTION 12AA OF THE ACT, THE CIT HAS TO GET HIMSELF SATISFI ED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST AND ALSO ABOUT THE OBJECTS OF THE TRUST. THERE CANNOT BE ANY DOUBT THAT IT IS TH E RESPONSIBILITY OF THE ASSESSEE TO FURNISH THE NECESSARY DETAILS IN OR DER TO ENABLE THE LEARNED CIT TO TAKE A DECISION IN THAT REGARD. IN THE INSTANT CASE, WE NOTICE THAT THE ASSESSEE HAS APPEARED BEFORE LEARNE D CIT AND ACCORDING TO THE ASSESSEE IT WAS READY AT THAT TIME WITH NECESSARY DETAILS. BE THAT AS IT MAY, IN THE INSTANT CASE, W E NOTICE THAT THE APPLICATIONS FILED BY THE ASSESSEE HAVE NOT BEEN RE JECTED ON MERITS, BUT THEY HAVE BEEN REJECTED FOR NON-FURNISHING OF D ETAILS ONLY. THE LEARNED CIT DID NOT FIND FAULT WITH THE DOCUMENTS T HAT WERE FILED ALONG WITH THE APPLICATION FORMS. HENCE, WE ARE OF THE VIEW THAT, IN THE INTEREST OF NATURAL JUSTICE, BOTH THE APPLICATI ONS OF THE ASSESSEE SHOULD BE RE-EXAMINED IN ACCORDANCE WITH THE LAW. ACCORDINGLY, WE SET ASIDE THE ORDER OF LEARNED CIT AND DIRECT HIM T O EXAMINE BOTH THE APPLICATIONS FILED BY THE ASSESSEE IN ACCORDANCE WI TH LAW, AFTER AFFORDING NECESSARY OPPORTUNITY OF BEING HEARD. TH E ASSESSEE IS ALSO ITA NO 472 OF 2007 AND 86 OF 2011 MAHAVIR INTERNAT IONAL TRUST, VISAKHAPATNAM PAGE 4 OF 4 DIRECTED TO FILE ALL THE DETAILS/DOCUMENTS THAT MAY BE CALLED FOR IN THIS REGARD. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 9 TH MARCH, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT M EMBER PVV/SPS VISAKHAPATNAM, DATE: 09-03-2011 COPY TO 1 M/S MAHAVIR INTERNATIONAL SERVICE TRUST, DOOR NO.H - 3/II SEASHELL APARTMENTS, 11-2-1 WALTAIR UPLANDS, VISAKHAPATNAM 2 THE COMMISSIONER OF INCOME TAX, VISAKHAPATNAM 4 THE DR, ITAT, VISAKHAPATNAM. 4 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM