The Nair Union Society, Trivandrum V. CIT, Trivandrum

ITA 514/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65003 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-12-2012
• Assessment Year: misc
• Appeal Filed On: 22-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M ANIL KUMAR
• Section: 12AA

Judgement Text

1 ITA NO. 514/COCH/2011 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO.514/COCH/2011 THE NAIR UNION SOCIETY VS THE C.I.T. REG.NO.873/88 TRIVANDRUM T.C.NO,.13/634, 635, 636 NEAR GENERAL HOSPITAL JUNCTION TRIVANDRUM 695 035 PAN : AABAT6458M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MATHEW JOSEPH RESPONDENT BY : SHRI M ANIL KUMAR DATE OF HEARING : 03-12-2012 DATE OF PRONOUNCEMENT : 07-12-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE TAXPAYER IS DIRECTED AGAINST TH E ORDER OF THE ADMINISTRATIVE COMMISSIONER REJECTING APPLICATION OF THE TAXPAYER FOR REGISTRATION U/S 12AA OF THE ACT. 2 ITA NO. 514/COCH/2011 2. SHRI MATHEW JOSPEH, THE LD.REPRESENTATIVE FOR TH E TAXPAYER SUBMITTED THAT THE TAXPAYER IS RUNNING HOSPITAL / M ESS FOR POOR STUDENTS AND ALSO GIVING SCHOLARSHIPS FOR EDUCATION. THE CO MMISSIONER OF INCOME- TAX REJECTED THE APPLICATION OF THE TAXPAYER WITHOUT GIVING SUFFICIENT OPPORTUNITY. THEREFORE, ACCORDING TO THE LD.REPRES ENTATIVE, THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE COMMISSIONER OF INCOME-TAX FOR RECONSIDERATION. 3. ON THE CONTRARY, SHRI M ANIL KUMAR, THE LD.DR SU BMITTED THAT THE COMMISSIONER HAS PASSED A DETAILED ORDER AFTER CONS IDERING THE AMENDMENT MADE BY THE TAXPAYER REGARDING THE OBJECT OF THE TRUST. HOWEVER, SINCE THE TAXPAYER IS CLAIMING THAT SUFFIC IENT OPPORTUNITY WAS NOT GIVEN THE TRIBUNAL MAY DECIDE WHETHER SUFFICIENT OP PORTUNITY WAS GIVEN OR NOT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE GROUNDS OF APPEAL IT APPEARS THAT THE APPLICATION WAS ORIGINALLY POSTED ON 28-12-2010. THE TAXPAYER FURTHER STATES IN THE GROUNDS OF APPEAL TH AT ON 26-04-2011 HE 3 ITA NO. 514/COCH/2011 RECEIVED TELEPHONE CALL FROM THE OFFICE OF THE COMM ISSIONER OF INCOME-TAX ASKING HIM TO APPEAR AT 3.30 PM BEFORE THE COMMISSI ONER OF INCOME-TAX. HOWEVER, NO ENQUIRY WAS CONDUCTED. THE TAXPAYER FU RTHER STATES THAT THE SO-CALLED HEARING DATED 26-03-2011 WAS CONDUCTED WI THOUT GIVING PROPER OPPORTUNITY AND NOTICE. THE PROCEEDINGS BEFORE THE ADMINISTRATIVE COMMISSIONER FOR GRANT OF REGISTRATION U/S 12AA IS A QUASI JUDICIAL PROCEEDING. THEREFORE, THE COMMISSIONER-TAX IS EXP ECTED TO GIVE NOTICE IN WRITING BEFORE TAKING UP THE APPLICATION FOR ENQUIR Y. FROM THE ORDER OF THE LOWER AUTHORITY THERE IS A DOUBT WHETHER ANY SUCH P ROPER OPPORTUNITY WAS GIVEN TO THE TAXPAYER OR NOT? THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT GIVING ONE MORE OPPORTUNITY TO THE TAXPAYER MA Y NOT PREJUDICE THE INTEREST OF THE REVENUE IN ANY WAY. IN FACT GIVING ONE MORE OPPORTUNITY TO THE TAXPAYER WOULD PROMOTE THE CAUSE OF JUSTICE. TH EREFORE, BY KEEPING THE INTEREST OF JUSTICE IN MIND, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT ONE MORE OPPORTUNITY NEEDS TO BE GIVEN TO THE TAXPAYER TO PLACE THE FACTS BEFORE THE COMMISSIONER OF INCOME-TAX. ACCOR DINGLY THE ORDER OF THE LOWER AUTHORITY IS SET ASIDE AND THE ISSUE IS REMIT TED BACK TO THE FILE OF THE COMMISSIONER OF INCOME-TAX FOR RECONSIDERATION. TH E COMMISSIONER OF INCOME-TAX IS DIRECTED TO GIVE PROPER AND SUFFICIEN T OPPORTUNITY TO THE 4 ITA NO. 514/COCH/2011 TAXPAYER AND THEREAFTER DECIDE THE ISSUE WITHOUT BE ING INFLUENCED BY ANY OF THE OBSERVATIONS MADE IN THE IMPUGNED ORDER. 5. WITH THE ABOVE OBSERVATIONS, THE APPEAL OF THE T AXPAYER IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07 TH DECEMBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 07 TH DECEMBER, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH