Confederation of Real Estate Developers Assocition of India, Indore V. The CIT-I, Indore

ITA 501/IND/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2975 (ITAT-INDORE)
• Duration Of Justice: 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 10-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R R MEENA
• Assessee Lawyers: V K JHAVAR
• Keywords: Opportunity of being heard
• Section: 12A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 501/IND/2012 CONFEDERATION OF REAL ESTATE DEVELOPERS ASSOCIATION OF INDIA, INDORE PAN AAECC 5399 M :: APPELLANT VS CIT-INDORE :: RESPONDENT APPELLANT BY SHRI PRAKASH JAIN AND SHRI V.K. JHAVAR RESPONDENT BY SHRI R.R. MEENA DATE OF HEARING 10.5.2013 DATE OF PRONOUNCEMENT 10.5.2013 O R D E R PER JOGINDER SINGH, JUDICIAL MEMBER THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER D ATED 9.7.2012, PASSED BY THE LD. COMMISSIONER-1, INDORE, DENYING 2 REGISTRATION U/S 12A TO THE ASSESSEE VIDE ORDER DAT ED 9.7.2012. THE CRUX OF ARGUMENTS ON BEHALF OF THE ASSESSEE IS THAT THE ASSESSEE IS A NON-PROFIT MAKING ORGANISATION, APPLIED FOR REGISTR ATION U/S 12A AND THE ORDER WAS PASSED WITHOUT PROVIDING OPPORTUN ITY TO THE ASSESSEE. IT WAS ALSO CONTENDED THAT THAT REPORT OF THE INSPECTOR WAS NEVER PROVIDED TO THE ASSESSEE. THE ASSESSEE HA S ALSO FILED AN AFFIDAVIT DULY SWORN BY THE PRESIDENT OF THE ASSESS EE CONFEDERATION WHICH IS AVAILABLE AT PAGE 43 OF THE PAPER BOOK. ON THE OTHER HAND, THE LD. SR. DR DEFENDED THE DENIAL OF REGISTRATION ON THE PLEA THAT FIRSTLY, NO CHARITY IS DONE BY THE ASSESSEE AND SEC ONDLY, IN SPITE OF OPPORTUNITY PROVIDED THROUGH LETTER DATED 12.1.2012 FIXING THE DATE OF HEARING ON 30.1.2012, THE ASSESSEE DID NOT APPEA R. 2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE CONFEDERATION/ASSOCIATION APPLIED FOR REGI STRATION U/S 12A OF THE ACT ON 4.1.2012. TO VERIFY THE CONDITION OF REGISTRATION, A LETTER WAS CLAIMED TO BE ISSUED ON 12.1.2012 TO THE ASSESSEE, FIXING THE DATE OF HEARING FOR 30.1.2012, IN WHICH THE ASS ESSEE WAS ASKED TO PRODUCE THE BOOKS OF ACCOUNTS AND OTHER RELEVANT DETAILS. AS PER 3 THE IMPUGNED ORDER, THE ASSESSEE DID NOT ATTEND. AN INSPECTOR WAS ALSO CLAIMED TO BE DEPUTED TO VERIFY THE ACTIVITIES OF THE ASSESSEE. AS PER THE REPORT OF THE INSPECTOR, NO ACTIVITIES OF T HE ASSOCIATION WERE FOUND AND THE ASSOCIATION IS MERELY DEALING WITH TH E REAL ESTATE BUSINESS WHICH ARE OF COMMERCIAL IN NATURE. HOWEVER , BEFORE US, THE STAND OF THE ASSESSEE IS THAT THE REPORT OF THE INSPECTOR WAS NEVER SUPPLIED TO THE ASSESSEE, FOR WHICH, OUR ATTE NTION WAS INVITED TO THE PAGES 41 & 42 OF THE PAPER BOOK, WHEREIN A R EQUEST HAS BEEN MADE TO SUPPLY THE REPORT OF THE INSPECTOR. THE ASS ESSEE HAS ALSO FILED AN AFFIDAVIT (PAGE 43 OF THE PAPER BOOK), STA TING THAT THE INSPECTOR NEVER VISITED THE OFFICE SITUATED AT 401, SHRI CLASSIC ARC, 79, BHIMA NAGAR, ANAND BAZAR, INDORE AND NEVER MET THE PRESIDENT IN CONNECTION WITH THE APPLICATION FILED FOR REGIST RATION U/S 12A OF THE ACT. KEEPING IN VIEW THE TOTALITY OF FACTS AND CIRCUMSTANCES AVAILABLE ON RECORD/ASSERTED BEFORE US, WE ARE OF T HE VIEW THAT NO PERSON SHOULD BE CONDEMNED UNHEARD, THEREFORE, IN T HE INTEREST OF JUSTICE, WE REMAND THIS APPEAL TO THE FILE OF THE L D. CIT FOR FRESH CONSIDERATION. THE LD. COMMISSIONER IS DIRECTED TO EXAMINE THE CLAIM OF THE ASSESSEE WITHIN THE AMBIT OF THE PROVI SIONS OF THE ACT AND AFTER PROVIDING DUE OPPORTUNITY OF BEING HEARD AND DECIDE IN 4 ACCORDANCE WITH LAW. THE ASSESSEE IS ALSO AT LIBERT Y TO FURNISH EVIDENCE, IF ANY, IN SUPPORT OF ITS CLAIM. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN T HE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCL USION OF THE HEARING ON 10.5.2013. SD/- SD (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 10.5.2013 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE !VYS!