The Kothamangalam Diocese Educational & Charitable Trust e Bank Ltd, Kothamangalam V. TheCIT (Exemption), Cochin

ITA 5/COCH/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2605 (ITAT-COCHIN)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2016
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 28-12-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 06-01-2015
• Court: TRIBUNAL
• Department Lawyers: SHANTHAM BOSE
• Assessee Lawyers: SHYJO JOSEPH
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH C OCHIN BEFORE S/SHRI B.P. JAIN, AM AND GEORGE GEOR GE K., JM I.T.A. NO.05/COCH/2015 ASSESSMENT YEAR : 2010-11 THE KOTHAMANGALAM DIOCESE EDUCATIONAL & CHARITABLE TRUST, BISHOPS HOUSE, KOTHAMANGALAM-686691. [PAN:AACTK 4891P] VS. THE COMMISSIONER OF INCOME-TAX, KOCHI. (ASSESSEE -APPELLANT) (REVENUE-RESPONDENT) ASSESSEE BY SHRI SHYJO JOSEPH, FCA REVENUE BY SHRI SHANTHAM BOSE, CIT(DR) DATE OF HEARING 28/12/2015 DATE OF PRONOUNCEMENT 04 /01/2016 O R D E R PER B.P.JAIN, ACCOUNTANT MEMBER: THIS APPEAL OF THE ASSESSEE ARISES FROM THE O RDER OF THE LD. CIT, KOCHI DATED 19/12/2014 PASSED U/S. 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961. 2. FOR THE SAKE OF CONVENIENCE, THE ORDER OF THE L D. CIT(A) IS REPRODUCED HEREINBELOW: 1.THE TRUST HAS FILED AN APPLICATION FOR REGISTRAT ION U/S. 12A OF THE I.T. ACT, 1961 BEFORE THE COMMISSIONER OF INCOME TAX IN THE P RESCRIBED FORM NO. 10A. THE SAME WAS FORWARDED TO THIS OFFICE VIDE CSIT LE TTER NO. CIT(E)/CHN/12A/2/2014-15 DATED 09/07/2014 FOR VERIFY ING THE OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES CONDUCTED B Y THE TRUST AND THE REPORT WAS CALLED FOR. I.T.A. NO.05/COCH/2015 2 2. THE ACIT(EXEMPTION), KOCHI VIDE LETTER NO. DDIT(E )/CHN/12AA/17/2014-15 DATED 1.12.2014 HAS REPORTED THAT IN ORDER TO PROCE SS THE APPLICATION AND TO VERIFY THE GENUINENESS AND EXISTENCE OF THE TRUST, A LETTER IN F.NO. DDIT (EXEM)/CHN/12A/17/2014-15 DATED 17.07.2014 WAS ISSUE D TO THE TRUST REQUIRING THEM TO FURNISH THE ORIGINAL BOOKS OF ACC OUNTS AND OTHER RELEVANT DOCUMENTS INCLUDING AMENDMENTS IN THE TRUST DEED ET C. IN RESPONSE, THE ASSESSEE DID NOT APPEAR. FURTHER, THE ASSESSEE WAS REMINDED AGAIN. HOWEVER, NOBODY ATTENDED NOR ANY APPEAR. FURTHER, THE ASSESS EE WAS REMINDED AGAIN. HOWEVER, NOBODY ATTENDED NOR ANY WRITTEN SUBMISSION WAS FILED. IN ABSENCE OF ANY DOCUMENTS FILED BY THE ASSESSEE, THE GENUINENES S OF THE TRUST AND ITS ACTIVITIES CANNOT BE ASCERTAINED IT ALSO SEEMS THA T THE ASSESSEE IS NOT INTERESTED IN PURSUING THIS APPLICATION FURTHER. 3. AS THE INSTITUTION HAS FAILED TO AVAIL THE O PPORTUNITY PROVIDED TO IT FOR PRESENTING ITS CASE AS REGARDS TO OBJECTS OF THE TR UST AND GENUINENESS OF THE ACTIVITIES, THE APPLICATION OF THE INSTITUTION FOR REGISTRATION U/S. 12AA IS HEREBY REJECTED. 3. THE LD. COUNSEL FOR THE ASSESSEE ARGUED THAT T HE ASSESSEE HAS FILED AN APPLICATION FOR REGISTRATION U/S. 12A OF IT ACT BEF ORE THE COMMISSIONER OF INCOME TAX COCHIN ON 16.06.2014 IN FORM NO. 10A ALONG WITH CERTIFIED COPY OF THE TRUST DEED, NOTES ON ACTIVITIES OF THE TRUST AND RECEIPTS & PAYMENTS ACCOUNT FOR THE PERIOD FORM 15.05.2014TO 12.06.2014 (AS THE TRUST W AS FORMED ONLY ON 15.05.2014). THE ASSESSEE HAD RECEIVED A NOTICE NO . F. NO. DDIT(E)/12A/17/2014-15 DATED 17.07.2014 OF DY. DIREC TOR OF INCOME TAX (EXEMPTION), REGARDING THE HEARING ON 30.07.2014 . THE ASSESSEE FILED A REQUEST FOR SHORT ADJOURNMENT OF ONE WEEK, FOR THE HEARING POSTED ON 30.07.2014, AS PRIEST WHO IS IN CHARGE WAS ON RETREAT. THE ADJOURN MENT LETTER HAS BEEN SENT VIA SPEED POST NO. EL451028777N ON 30.07.2014. COPY OF S EED POST RECEIPT IS PLACED ON RECORD. IN FURTHERANCE TO ABOVE, THE ASSESSEE FILED A LETTER DATED 16.08.2014 I.T.A. NO.05/COCH/2015 3 ALONG WITH CERTIFIED COPY OF THE TRUST DEED, DETAIL ED NOTES ON ACTIVITIES, DETAILS OF CHARITABLE ACTIVITIES UNDER TAKEN, INCOME & EXPENDIT URE ACCOUNT AND BALANCE SHEET AS ON 30.06.2014 VIA SPEED POST NO. EL391595 194IN ON 22.08.2014. COPY OF LETTER AND COPY OF SPEED POST RECEIPT IS PLACED ON RECORD. THE ASSESSEE HAS NOT RECEIVED ANY FURTHER FROM THE DY. DIRECTOR OF INCOM E TAX (EXEMPTION) REGARDING THE ABOVE HEARING. THE ASSESSEE RECEIVED A LETTER N O. CIT/CHN/TECH/12A/11/2014-15 DATED 01.12.2014 FROM T HE OFFICE OF THE COMMISSIONER OF INCOME TAX(EXEMPTION) REGARDING THE HEARING POSTED ON 08.12.2014. IN RESPONSE TO THE ABOVE, THE ASSESSEE FILED AN ADJOURNMENT LETTER DATED 07.12.2014 VIA HAND DELIVERY AS THE LETTER WA S RECEIVED BY THE ASSESSEE ONLY TWO DAYS BEFORE THE DATE OF HEARING AND ALSO REQUES T FOR ANOTHER OPPORTUNITY. COPY OF LETTER IS PLACED ON RECORD WHICH IS DULY AC KNOWLEDGED BY THE COMMISSIONER OF INCOME TAX. COPY OF ACKNOWLEDGEMENT IN HAND DELIVERY BOOK IS ALSO PLACED ON RECORD. WITHOUT CONSIDERING THE REQU EST FOR ADJOURNMENT, THE COMMISSIONER OF INCOME TAX(EXEMPTION) REJECTED THE A PPEAL. CONSIDERING THE ABOVE FACTS, THE LD. AR PRAYED TO ALLOW THE APPEAL AND DIRECT THE CIT(EXEMPTIONS) TO GRANT REGISTRATION U/S. 12A OF THE IT ACT. 4. THE LD. DR ON THE OTHER HAND RELIED ON THE ORDER OF THE LD. CIT. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE FACTS OF THE CASE. THE UNDISPUTED FACTS IN THE PRESENT CASE ARE THAT THE A SSESSEE ON THE DATE OF HEARING I.T.A. NO.05/COCH/2015 4 HAD FILED THE ADJOURNMENT PETITION AND ALSO THE DET AILS AS REQUIRED BY THE LD. CIT. THE LD. CIT HAS NOT TAKEN INTO CONSIDERATION EITHER THE APPLICATION OR THE DETAILS FILED WHICH HAS CAUSED INJUSTICE TO THE ASS ESSEE. THEREFORE, IN THE INTEREST OF JUSTICE, WE SEND THE MATTER BACK TO THE FILE OF THE LD. CIT, KOCHI TO CONSIDER THE DETAILS FILED AND DECIDE THE ISSUE DE NOVO AFTE R AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE AS SESSEE IS FREE TO FILE FURTHER DETAILS AS REQUIRED BY THE LD. CIT, KOCHI. ACCORDI NGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I .T.A. NO.05/COCH/2015 IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 04-01-2016. SD/- SD/- (GEORGE GEORGE K.) (B.P. JAIN) JUDICIAL MEMBER ACC OUNTANT MEMBER PLACE: KOCHI DATED: 04TH JANUARY, 2016 GJ COPY TO: 1. THE KOTHAMANGALAM DIOCESE EDUCATIONAL & CHARITABL E TRUST, BISHOPS HOUSE, KOTHAMANGALAM-686691. 2. THE COMMISSIONER OF INCOME-TAX, KOCHI. 3. D.R., I.T.A.T.,COCHIN. 4. GUARD FILE . BY ORDER (ASSISTANT RE GISTRAR) I.T.A .T., COCHIN I.T.A. NO.05/COCH/2015 5