Dream Educational Trust , Bangalore V. Commissioner of Income Tax (Exemptions) , Bangalore

ITA 511/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2880 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 23-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

ITA.511/BANG/2018 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'C', BENGALURU BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.511/BANG/2018 (ASSESSMENT YEAR : 2017-18) DREEM EDUCATIONAL TRUST, NO.1169, SANTUSTI 12 TH A MAIN, 4 TH CROSS, INDIRANAGAR, BENGALURU 560 038 .. APPELLANT PAN : AACTD3312J V. COMMISSIONER OF INCOME-TAX (EXEMPTIONS), BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. BALACHANDRAN, ADVOCATE REVENUE BY : SHRI. MUZAFFAR HUSAIN, CIT HEARD ON : 23.08.2018 PRONOUNCED ON : 29.08.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THE PRESENT APPEAL IS FILED BY THE ASSESSEE AGAINS T THE ORDER OF THE CIT (EX), BEGALURU, DT.20.11.2017, WHEREIN THE REGISTRATION U/S.12A WAS REJECTED TO THE ASSESSEE, ON THE FOLLOW ING GROUNDS OF APPEAL : ITA.511/BANG/2018 PAGE - 2 02. IT WAS SUBMITTED BY THE LD. AR THAT THE CIT (E) , DESPITE FULL COOPERATION AND SUBMISSION OF DOCUMENTS AND REQUEST FOR GRANT OF ADJOURNMENT HAS PASSED THE EX-PARTE ORDER DISMISSIN G THE APPLICATION FOR REGISTRATION OF THE TRUST U/S.12AA OF THE ACT. IT WAS ITA.511/BANG/2018 PAGE - 3 SUBMITTED BY THE LD. AR THAT THE CIT (A) HAD ASKED FOR CLARIFICATION VIDE LETTER DT.31.10.2017, WHEREIN THE ASSESSEE WAS ASKED TO GIVE A REPLY BY 17.11.2017. AS THE MANAGING TRUSTEE WAS O UT OF STATION, THEREFORE A REQUEST WAS MADE TO CIT (E) TO GRANT FI VE DAYS TIME. HOWEVER BEFORE THE REPLY COULD BE PREPARED AND SEN T TO CIT (E), THE CIT (E) HAS PASSED THE IMPUGNED ORDER ON 20.11. 2017. 03. ON THE OTHER HAND THE LD. DR RELIES UPON THE OR DER PASSED BY THE CIT (E). 04. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. WE FIND THAT THE CIT (E) HAS PASSED THE EX-PARTE O RDER REJECTING THE 12AA REGISTRATION DESPITE THE AVAILABILITY OF MATER IALS ON RECORD. IN OUR VIEW, THE DISMISSAL OF APPLICATION U/S.12AA ON THE PRETEXT OF ABSENCE OF THE RELEVANT DETAILS OR ABSENT OF THE RE PRESENTATIVE OF THE ASSESSEE ON THE DATE OF HEARING, WITHIN SHORT SPAN OF SENDING THE NOTICE IS UNWARRANTED , WE EXPECT THE CIT (E) TO T AKE A BENEVOLENT APPROACH RATHER THAN PEDANTIC APPROACH IN DISMISSIN G THE APPLICATION FOR REGISTRATION. IN VIEW OF THE ABOVE , WE DEEM IT APPROPRIATE TO REMAND THE MATTER TO THE FILE OF THE CIT (E) FOR DECIDING THE ISSUE DENOVO AFTER GIVING DUE OPPORTUN ITY OF HEARING TO THE ASSESSEE. NEEDLESS TO SAY THAT THE ASSESSEE SH ALL REMAIN PRESENT ON THE FIRST DATE OF HEARING ALONG WITH THE DOCUMEN T DISCLOSING THE FUNCTIONS PERFORMED BY THE ASSESSEE AND HOW THE ASS ESSEE IS ENTITLED FOR REGISTRATION UNDER THE REALM OF LAW. ITA.511/BANG/2018 PAGE - 4 05. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICA L PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH DAY OF AUGUST, 2018. SD/- SD/- (A. K. GARODIA) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER BENGALURU DATED : 29.08.2018 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.