Aggarwal Samaj, New Delhi V. DIT (Exemptions), New Delhi

ITA 5071/DEL/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5497 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-02-2014
• Assessment Year: misc
• Appeal Filed On: 28-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A MISRA
• Assessee Lawyers: VENKTESH
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI J.S. REDDY ITA NO. 5071/DEL/2012 AGGARWAL SAMAJ, VS. DIT (EXEMPTION), 2586, SHRI AGGARWAL DHARAMSHALA, DELHI. TRINAGAR, DELHI-110035. PAN: AACAA 4815 A ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI VENKTESH CA RESPONDENT BY : SHRI A. MISRA CIT (DR) O R D E R PER R.P. TOLANI, J.M: : THIS IS ASSESSEES APPEAL AGAINST THE ORDER DATED 8-10-2009 PASSED BY THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), DELHI U/S 12AA(1)(B) READ WITH SEC. 12A OF THE INCOME-TAX ACT, 1961.VARIOUS ISSUES ARE RAISED, WHICH, IN EFFECT AGITATE FOLLOWING GROUNDS: ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LE ARNED DIT(E) HAS ERRED BOTH ON FACTS AND IN LAW IN REJECT ING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATI ON UNDER SECTION 12A OF THE ACT, WITHOUT GIVING AN ADEQUATE AND PROPER OPPORTUNITY OF BEING HEARD. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED DIT(E) HAS ERRED BOTH ON FACTS AND IN LAW IN REJECTING THE APPLICATION OF THE ASSESSEE FOR GRANT OF REGISTRATION UNDER SEC TION 12A OF THE INCOME TAX ACT. 2. BRIEF FACTS ARE: THE ASSESSEE TRUST FILED APPLIC ATIONS IN FORM NOS. 10A AND 10G SEEKING REGISTRATION U/S 12A AND EXEMPTION U/S 80G OF THE INCOME- 2 TAX ACT, 1961. ACCORDING TO DIT(E), ASSESSEE FAILED TO RESPOND TO NOTICES AND THE REQUISITE COMPLIANCE WAS NOT MADE, THEREFOR E, THE REQUESTS WERE REJECTED EX PARTE VIDE THE IMPUGNED ORDER. AGGRIEVE D, ASSESSEE IS BEFORE US. 3.`LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT THE G ENERAL SECRETARY OF THE ASSESSEE TRUST WAS SICK AND BED RIDDEN FOR A PERIO D OF SIX MONTHS WHICH COVERS THE IMPUGNED PERIOD. THEREFORE, HE COULD NOT ATTEND THE PROCEEDINGS. IN SUPPORT, AFFIDAVIT OF SUBHASH MITTAL, GENERAL SECRETARY OF THE ASSESSEE SOCIETY IS FILED WITH FOLLOWING AVERMENTS: THAT I WAS THE GENERAL SECRETARY OF AGGARWAL SAMAJ TRINAGAR (REGD.) (A SOCIETY REGISTERED UNDER THE SOCIETY ACT , 1860), HAVING REGD. OFFICE AT 2586 MAHARAJA AGRASEN MARG, DELHI- 110035 DURING THE FINANCIAL YEAR 2009-10. THAT DURING THE FINANCIAL YEAR 2009-10, SOCIETY HAS FILED AN APPLICATION FOR THE REGISTRATION UNDER SECTION 12A AND 80G OF THE INCOME TAX ACT, 1961 WITH DIRECTOR OF INCOME TA X (EXEMPTION), NEW DELHI, FOR CLAIMING EXEMPTION ON I NCOME DERIVED FROM THE PROPERTY HELD UNDER THE SOCIETY TO BE APPLIED FOR THE CHARITABLE AND RELIGIOUS PURPOSE AND THE SA ME WAS BEING LOOKED AFTER BY ME. THAT THE NECESSARY DOCUMENTS AS REQUIRED FOR REGIST RATION COULD NOT BE FILED AS I WAS BED RIDDEN DUE TO SLIP DISC PROBLEM AND DOCTOR HAS ADVISED ME TO HAVE COMPLETE BED REST SINCE JULY 2009 TO DECEMBER 2009 AND THE DOCUMENTS WERE IN MY POSSESSION UNDER LOCK AND KEY. THAT THE NON-APPEARANCE BEFORE DIRECTOR OF INCOME T AX (EXEMPTION), NEW DELHI, AS SUCH WAS BEYOND THE CONT ROL OF THE SOCIETY. 3 3.1. IT IS PLEADED THAT FOR THE MEDICAL INDISPOSITI ON OF THE GENERAL SECRETARY OF THE ASSESSEE TRUST THE CAUSE OF TRUST SHOULD NOT BE SUBJECTED TO ADVERSELY SUFFER. THEREFORE, AN EARNEST PRAYER IS MADE TO SET ASIDE THE MATTER BACK TO THE FILE OF DIT(E) TO DECIDE THE SAME AFRESH. ASSES SEE UNDERTAKES TO FULLY COOPERATE IN THE FRESH PROCEEDINGS. 4. LD. CIT(DR) IS HEARD TO SUPPORTS THE ORDER OF DI T(E) AND CONTENDS THAT IN THE ABSENCE OF COMPLIANCE LD. DIT(E) HAD NO OPTION BUT TO REJECT THE APPLICATION. 5. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. THE CONTENTS OF THE AFFIDAVIT HAVE NOT BEEN CONTROVERTED. IT IS UNDISPUTED THAT GENERAL SECRETARY OF THE ASSE SSEE TRUST DID NOT ATTEND AND COMPLY WITH THE REQUIREMENT BEFORE THE DIT(E). HOWE VER, IT IS ALSO A MATTER OF FACT THAT THE GENERAL SECRETARY WAS BED RIDDEN A ND MEDICALLY INDISPOSED TO ATTEND THE PROCEEDINGS. THUS, THE PLEA OF THE AS SESSEE TRUST THAT IT WAS PREVENTED BY SUFFICIENT CAUSE IN THIS BEHALF IS SUP PORTED BY A DULY SWORN AFFIDAVIT. WE FIND MERIT IN THE PLEA OF LD. COUNSEL THAT IT WILL BE IN THE INTEREST OF SUBSTANTIAL JUSTICE THAT MEDICAL INDISP OSITION OF GENERAL SECRETARY SHOULD NOT BE MADE A BASIS TO DENY THE REGISTRATION U/S 12AA AND 80G WHICH WILL BE DETRIMENTAL TO THE SMOOTH CARRYING ON OF T HE OBJECTIVES OF THE TRUST. IN THESE FACTS AND CIRCUMSTANCES, SINCE THE ASSESSE E WAS PREVENTED BY A 4 REASONABLE CAUSE IN FAILING TO ATTEND THE PROCEEDIN GS, IN VIEW THEREOF, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ISSUE OF REGI STRATION BACK TO THE FILE OF DIT(E) TO DECIDE THE SAME AFRESH. THE ASSESSEE SHAL L ABIDE BY ITS UNDERTAKING TO FULLY COOPERATE IN THE MATTER. 6. IN THE RESULT, ASSESSEES APPEAL STANDS ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN OPEN COURT ON 13-02-2014. SD/- SD/- ( J.S. REDDY ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 13-02-2014. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR