Ramarani Educational Trust, Balasore V. CIT, Cuttack

ITA 485/CTK/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58383 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 29-11-2011
• Court: TRIBUNAL
• Department Lawyers: PARAMITA TRIPATHY
• Assessee Lawyers: P K MISHRAAR
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INC O ME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE : SHRI K.K.GUPTA, AM , AND SHRI K.S.S.PRASAD RAO, JM ITA NO. 485/CTK/2011 RAMARANI EDUCATONAL TRUST, A: TAMULIA, MEGHADAMBRU,BALASORE 756001 PAN:AABTR 3905 VERSUS COMMISSIONER OF INCO ME TAX, CUTTACK. (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI P.K.MISHRA,AR FOR THE RESPONDENT S MT. PARAMITA TRIPATHY, DR DATE OF HEARING : 20.12.2011 DATE OF PRONOUNCEMENT : 13.01.2012 ORDER SHRI K.S.S.PRASAD RAO, JM : THIS APPEAL IS FILED BY THE ASSESSEE HAVING BEEN AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX, DT.28.9.2011 REJECTING THE REGISTRATION SEEKING REGISTRATION U/S.12AA OF THE INCOME - TAX ACT,1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING ISSUES: 1. THAT THE IMPUGNED ORDER SO PASSED BY THE COMMISSIONER IS ARBITRARY, ILLEGAL AND BAD IN LAW AS SUCH IS LIABLE TO BE QUASHED IN THE INTEREST OF JUSTICE. 2. THAT THE LEARNED COMMISSIONER SHOULD HAVE GRANTED THE REGISTRATION U/S.12AA OF THE ACT TO THE APPELLANT AS THE APPELLANT IS CERTAINLY ENTITLED FOR THE SAME. 3. THAT THE LEARNED CIT SHOULD HAVE ALLOWED SUFFICIENT EFFECTIVE OPPORTUNITY TO PRODUCE THE BALANCE REQUIRED DOCUMENTS AND ALSO OPPORTUNITY OF BEING HEARD AS IT IS WELL WITHIN HIS KNOWLEDGE THAT THE MANAG ING TRUSTEE WAS SERIOUSLY SUFFERING FROM CANCER AND WAS UNDER TREATMENT AT MUMBAI . 3. BOTH THE PARTIES WERE HEARD REGARDING THE ISSUES RAISED BY THE ASSESSEE AND THEIR LEGAL IMPLICATIONS. 4. DURING THE COURSE OF HEARING THE LEARNED AR OF THE ASSESSEE ARG UED THAT THE LEARNED CIT HAS NOT GIVEN PROPER OPPORTUNITY TO THE ASSESSEE TO PRODUCE NECESSARY EVIDENCE IN SUPPORT OF ITS CLAIM FOR REGISTRATION U/S.12AA ITA NO.485/CTK/2011 2 OF THE INCOME - TAX ACT,1961, SINCE THE MANAGING TRUSTEE WAS SEVERELY SUFFERING FROM CANCER AND WAS UNDE R TREATING IN MUMABI . ACROSS THE BAR HE STATED THAT NOW THE MANAGING TRUSTEE IS AVAILABLE AND READY TO PRODUCE ALL THE RECORDS THAT IS REQUIRED BY THE LEARNED CIT ESTABLISHING ITS CLAIM FOR REGISTRATION U/S.12AA OF THE ACT. THEREFORE, HE SOUGHT FOR ALLOW T HE APPEAL OF THE ASSESSEE BY RESTORING THE CASE TO THE LEARNED CIT TO GIVE OPPORTUNITY TO THE ASSESSEE AND THEN TO PASS THE ORDER ACCORDINGLY. 5. CONTRARY TO THIS, THE LEARNED DR CONTENDED THAT THOUGH THE ASSESSEE HAS FILED APPLICATION U/S.12AA AS PRESCRIB ED UNDER RULE 17A OF THE I.T.RULES,1962, IT HAS NOT PRODUCE THE ORIGINAL DOCUMENTS AND BOOKS OF ACCOUNTS FOR VERIFICATION INSPITE OF SPECIFIC REQUISITIONS MADE BY THE LEARNED CIT. THEREFORE, THERE IS NO EVIDENCE FOR THE CLAIM MADE BY THE ASSESSEE FOR REGIS TRATION U/S.12AA OF THE ACT. HENCE, THE LEARNED CIT IS RIGHT IN REJECTING THE APPLICATION OF THE ASSESSEE SEEKING REGISTRATION U/S.12AA OF THE ACT. ACCORDINGLY, SHE SOUGHT FOR DISMISSAL OF THE APPEAL OF THE ASSESSEE BY UPHOLDING THE IMPUGNED ORDER OF THE LEARNED CIT. 6. ON CAREFUL CONSIDERATION OF THE MATERIAL AVAILABLE ON RECORD IN THE LIGHT OF THE RIVAL SUBMISSIONS OF BOTH THE PARTIES, IT IS FOUND THAT THE ASSESSEE HAS MADE APPLICATION FOR REGISTRATION U/S.12AA IN THE REQUISITE FORM. THE LEARNED CIT HAS REJECTED THE CLAIM FOR REGISTRATION HOLDING THAT NO COGENT EVIDENCE WERE PRODUCED BEFORE HIM BY THE ASSESSEE ENTITLING THE ASSESSEE FOR REGISTRATION AS CLAIMED IN THE APPLICATION. NOWHERE IN THE IMPUGNED ORDER THE LEARNED CIT HAS MENTIONED ABOUT THE INTIMA TION SENT TO THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT BEFORE HIM FOR CONSIDERING THE APPLICATION FOR REGISTRATION. THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT BECAUSE THE MANAGING TRUSTEE WHO IS IN - CHARGE OF ALL THES E THINGS WAS SUFFERING FROM CANCER AND HENCE, THE BOOKS OF ACCOUNT COULD NOT BE PRODUCED BEFORE THE ITA NO.485/CTK/2011 3 LEARNED CIT. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE, IT IS FOUND THAT THE LEARNED CIT WHILE DISPOSING THE APPLICATION FOR REGISTRATION OF THE ASSESSEE HAS NOT FOLLOWED THE PRINCIPLE S OF NATURAL JUSTICE AS REQUIRED TO BE FOLLOWED BY HIM UNDER THE ACT WHILE DISPOSING THE REGISTRATION APPLICATION. SINCE THE ASSESSEE IS READY AND WILLING TO PRODUCE THE BOOKS OF ACCOUNTS AND ALL THE INFORMATION SOUGHT FOR BY THE LEARNED CIT, WE ARE OF CON SIDERED VIEW THAT IT IS A FIT CASE TO BE RESTORED TO THE FILE OF THE LEARNED CIT FOR DE NOVO CONSIDERATION OF THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S.12AA AFTER GIVING OPPORTUNITY TO THE ASSESSEE OF BEING HEARD AND TO PRODUCE THE RELEVANT DOCU MENTS AND INFORMATION AS REQUIRED BY THE LEARNED CIT. ACCORDINGLY, WE SET ASIDE THE IMPUGNED ORDER OF THE LEARNED CIT AND RESTORE THE CASE TO HIS FILE FOR THE PURPOSE AS MENTIONED ABOVE. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE WITH THE LEARNED CIT FOR EARLY DISPOSAL OF ITS APPLICATION SEEKING REGISTRATION U/S.12AA. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (K.K.GUPTA) ACCOUNTANT MEMBER ( K.S.S.PRASAD RAO) JUD ICIAL MEMBER DATE: 13 TH J ANUARY, 2012 H.K.PADHEE, SENIOR PRIVATE SECRETARY. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT: RAMARANI EDUCATONAL TRUST, A: TAMULIA, MEGHADAMBRU,BALASORE 756001 2. THE RESPONDENT: COMMISSIONER OF INCOME TAX, CUTTA CK. 3. THE CIT, 4. THE CIT(A), 5. THE DR, CUTTACK 6. GUARD FILE (IN DUPLICATE) TRUE COPY, BY ORDER, SENIOR PRIVATE SECRETARY.