Indigree Angles Trust, New Delhi V. DIT (Exemptions), New Delhi

ITA 4992/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58482 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 11-01-2012
• Assessment Year: misc
• Appeal Filed On: 09-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALIL MISRA
• Assessee Lawyers: LALITHA KRISHNAMURTHY
• Keywords: Opportunity of being heard
• Section: 12A

Judgement Text

ITA NO. 4992/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 4992/DEL/2011 A.Y. : --- M/S INDIGREE ANGLES TRUST, B-5/197, SAFDARJUNG ENCLAVE, NEW DELHI 110 029 (PAN : AAATI18037M) VS. DIRECTOR OF INCOME TAX (EXEMPTIONS), PLOT NO. 15, 3 RD FLOOR, AAYAKAR BHAVAN, LAXMI NAGAR, DISTRICT CENTRE, DELHI 110092 (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SMT. LALIT H A KRISHNAMURTHY, CA DEPARTMENT BY : SH. SALIL MISRA, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD. DIRECTOR OF INCOME TAX (EXEMPTIONS), NEW DELHI DA TED 1.9.2011. 2. THE GROUNDS RAISED READ AS UNDER:- (I) THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTION) HAD ERRED IN REJECTING THE APPLICATION FILED BY THE ASSESSEE F OR GRANT OF REGISTRATION UNDER SECTION 12A OF THE INCOME TAX AC T, 1961. (II) THAT THE LD. DIRECTOR OF INCOME TAX (EXEMPTIONS) HAD ERRED IN STATING THAT NOBODY ATTENDED ON 13.5.2011 IN RES PONSE TO LETTER DATED 3.5.2011 AND NOBODY ATTENDED ON 7.6.20 11. 3. IN THIS CASE ASSESSEE FILED AN APPLICATION ON 2 5.3.2011 IN FORM NO. 10A SEEKING REGISTRATION U/S 12A OF THE INCOME TAX ACT, 1961. THE ITA NO. 4992/DEL/2011 2 ASSESSEE WAS ISSUED LETTER DATED 3.5.2011 REQUESTIN G IT TO SUBMIT CERTAIN DOCUMENTS AND EXPLANATION ON 13.5.2011. TH E DIT(E) FURTHER NOTED THAT ON THE GIVEN DATE NONE ATTENDED IN RESP ONSE TO THE ABOVE LETTER. SUBSEQUENTLY, ON 20.5.2011, A.R. OF THE ASS ESSEE ATTENDED AND FILED LETTER WITH PART DETAILS, SHE WAS FURTHER ASK ED TO FURNISH THE FURTHER DETAILS. DIT(E) NOTED THAT FOR THIS PURP OSE, THE CASE WAS ADJOURNED FOR 6.7.2011. HOWEVER, ON THE GIVEN DATE NEITHER ANYBODY ATTENDED NOR ANY WRITTEN REPLY / DETAILS HAVE BEEN FURNISHED TILL DATE. DIT(E) HELD THAT IN VIEW OF THE ABOVE FACTS AND NON- COMPLIANCE AND DESPITE GIVING AMPLE TIME FOR SUBMISSION OF DETAILS/ DOCUMENTARY EVIDENCE, AS CALLED FOR, THE APPLICANT HAS FAILED TO FURNISH THE REQUIRED DOCUMENTS TO SUBSTANTIATE ITS CASE. IN THE ABSENCE OF ABOVE DOCUMENTS/ DETAILS, THE GENUINENESS AND CORRECTNESS OF THE ACTIVITIES COULD NOT BE PROVED AND THE APPLICANT DOES NOT QUAL IFY FOR REGISTRATION. ACCORDINGLY, THE APPLICATION FILED BY THE APPLICANT FOR GRANT OF REGISTRATION U/S. 12A WAS REJECTED. 4. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEA L BEFORE US. 5. LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE MAT TER PERTAINING TO NON-ATTENDANCE ON BEHALF OF THE ASSESSEE IS FACT UALLY INCORRECT. IN THIS CONNECTION, SHE REFERRED TO AN AFFIDAVIT FILE D IN THIS REGARD. THE SAID AFFIDAVIT READS AS UNDER:- AFFIDAVIT I, LALITHA KRISHNAMURTHY WIFE OF MR. P. KRISHNAMURTH Y AGE 55 YEARS CHARTERED ACCOUNTANT AND PARTNER OF S. RAMANA ND AIYAR & CO. CHARTERED ACCOUNTANTS 708, SURYA KIRAN BUILDING, 19, KASTURBA GANDHI MARG, NEW DELHI 11000 1 DO HEREBY STATE ON SOLEMN AFFIRMATION AS UNDER:- ITA NO. 4992/DEL/2011 3 1. THAT AN APPLICATION FOR GRANT OF REGISTRATION UNDER SECTION 12A OF INCOME TAX ACT, 1961 WAS FILED IN THE ABOVE CASE IN THE PRESCRIBED FORM AND MANNER BEFORE DIT(E) AAYAKAR BHAVAN, LAXMI NAGAR, DISTRICT CENTRE, NEW DELHI WITH A COPY OF TRUST DEED ON 25.3.2011. 2. THAT IN RESPONSE TO THIS APPLICATION LD. DIT(E) ISSU ED A QUESTIONNAIRE DATED 3.5.2011 FIXING THE DATE FOR FURNISHING SUCH DOCUMENTS / CLARIFICATION ON 13.5.2011. THAT ON 13.5.2011 TIME WAS SOUGHT BY LETTER OF EVEN DATE FOR FILING THE NECESSARY REPLY AND THE MATTER WAS ADJOURNED TO 20.5.2011 BY THE INSPECTOR TO WHOM MATTER WAS DELEGATED. 3. THAT POINT WISE REPLY TO MOST QUESTIONS OF LETTER DATED 3.5.2011 WAS FILED BY THE ASSESSEE BY LETTER DATED 19.5.2011 WHEN APPEARANCE WAS MADE ON 20.5.2011 WITH THE REPLY. AND THE CASE WAS ADJOURNED BY HIM TO 7.6.2011 FOR FILING OF THE BALANCE REPLY CALLED FOR AS NOTED IN REJECTION ORDER. 4. THAT WHEN I APPEARED ON 7.6.2011 WITH THE NECESSARY REPLY TO THE REMAINING QUESTIONS I WAS TOLD THAT THE AFORE-STATED INSPECTOR WAS GOING TO BE OUT OF THE OFFICE FOR A MONTH AND THAT I SHOULD BRING SUCH PAPERS AFTER A MONTH AS THE PENDING APPLICATION WAS GETTING TIME BARRED ONLY IN SEPTEMBER, 2011. THAT IN JULY, 2011 WHEN I WENT TO FILE AN DISCUSS THE REPLY, IN THE ABSENCE OF ANY ITA NO. 4992/DEL/2011 4 SPECIFIC DATE BEING INTIMATED TO ASSESSEE FOR FILING AND DISCUSSION, I WAS TOLD BY THE INSPECTOR THAT I SHOULD COME IN AUGUST, 2011 AS THE APPLICATION WAS GETTING TIME BARRED IN SEPTEMBER, 2011 AND THE PAPERS COULD GET LOST WITHOUT THE FILE BEING OUT. THAT WHEN I WENT TO FILE AND DISCUSS THE REPLY IN AUGUST, 2011, IN THE ABSENCE OF ANY SPECIFIC DATE BEING INTIMATED TO ASSESSEE FOR FILING AND DISCUSSION, INSPECTOR WAS NOT AVAILABLE IN THE OFFI CE. THAT AFTER THAT I WAITED FOR A LETTER FROM OFFICE O F LD. DIT(E) ASKING ME TO APPEAR WITH THE BALANCE REPLY, BUT ONLY ORDER DATED 1.9.2011 REJECTING THE APPLICATION ON THE GROUNDS OF NON-COMPLIANCE WAS RECEIVED. 6. FROM THE ABOVE, WE FIND THAT IT IS THE CONTENTION OF THE LD. COUNSEL OF THE ASSESSEE THAT ASSESSEE WAS NOT GIVEN PROPER OPPORTUNITY TO CANVAS THE CASE. IN OUR CONSIDERE D OPINION, IN THE INTEREST OF JUSTICE, THE MATTER NEEDS TO BE REMITTED T O THE FILE OF THE DIT(E) TO CONSIDER THE ISSUE AFRESH, AFTER GIVING TH E ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. ACCORDINGLY, THE MA TTER STANDS REMITTED TO THE FILE OF THE DIT(E) TO CONSIDER THE ISSUE AFRE SH. NEEDLESS TO ADD THAT THE ASSESSEE SHOULD BE GRANTED ADEQUATE OPPORT UNITY OF BEING HEARD. ITA NO. 4992/DEL/2011 5 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13/1/2012. SD/- SD/- [ [[ [I.P. BANSAL I.P. BANSAL I.P. BANSAL I.P. BANSAL] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 13/1/2012 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES