SHRI ATAM VALLABH SHRAMNOPASAK GURUKUL TRUST ( CHARITABLE), LUDHIANA V. COMMISSIONER OF INCOME TAX ( EXEMPTIONS), CHANDIGARH

ITA 52/ASR/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1925 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 27-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K MUKHI SMT PRABHJOT K
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENC H, AMRITSAR (VIRTUAL COURT AT CHANDIGARH) BEFORE: SHRI. N.K.SAINI, VP & SHRI, R.L. NEGI, JM ./ ITA NO. 52/ASR/2020 / ASSESSMENT YEAR : SHRI ATAM VALLABH SHRAMNOPASAK GURUKUL TRUST(CHARITABLE) VPO HUSANPURA OPP AMALTAS HOTEL JALANDHAR BYEPASS, LUDHIANA-141005 PUNJAB THE CIT(EXEMPTIONS) ROOM NO. 1,5 TH FLOOR, CR BUILDING HIMALAYA MARG, SECTOR 17, CHANDIGARH ./ PAN NO: AAHAS1203K / APPELLANT / RESPONDENT ! / ASSESSEE BY : SHRI S.K. MUKHI, ADVOCATE ! / REVENUE BY : SMT. PRABHJOT KAUR, CIT DR ! &/ DATE OF HEARING : 23/02/2021 ! &/ DATE OF PRONOUNCEMENT : 23/02/2021 / // / ORDER PER N.K. SAINI, VICE PRESIDENT : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER D T. 19/12/2019 OF LD. CIT(E), CHANDIGARH. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT THE IMPUGNED ORDER PASSES BY CIT EXEMPTIONS IS ILLEGAL PERVERSE, ERRONEOUS AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE REASON / FINDINGS ITSELF. 2. THAT THE LD. CIT(EXEMPTIONS) IS NOT JUSTIFIED IN DENYING EXEMPTION U/S 80G OF INCOME TAX ACT, 1961 TO THE ASSESSEE / TRUST THE TRUST BEING E LIGIBLE FOR THE APPLIED EXEMPTION AND THE ORDER PASSED IS ILLEGAL, ERRONEOUS, PERVERSE AND AG AINST THE FACTS ON RECORD AND CIRCUMSTANCES OF THE CASE. 3. THAT THE APPELLANT ASSESSEE WAS NOT AFFORDED REA SONABLE OPPORTUNITY TO SUBMIT REPLY FOR THE QUESTIONS RAISED FOR THE APPLIED EXEMPTION. 4. THAT THE APPELLANT CRAVES LEAVE TO DELETE OR AME ND ANY OF THE GROUNDS OF APPEAL ON OR BEFORE THE DISPOSAL OF THE PRESENT APPEAL. 2.1 THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL R ELATES TO THE REJECTION OF APPLICATION MOVED BY THE ASSESSEE FOR APPROVAL UNDER SECTION 80G OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT). 2 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FI LED AN APPLICATION IN FORM NO. 10G ON 10/06/2019 FOR GRANTING APPROVAL UNDER SECTION 80 G OF THE ACT. EARLIER, THE REGISTRATION WAS GRANTED TO THE ASSESSEE UNDER SECTION 1 2AA OF THE ACT ON 26/03/2019. 3.1 THE LD. CIT(E) ASKED THE ASSESSEE TO APPRISE THE ACTIVITY AND AS TO WHETHER THE SAME WERE THE SIMILAR TO THE OBJECTS OF THE TRUST. THE LD. CIT(E) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE RAISED THE ADDITIONAL QUER Y THROUGH ITBA ON 04/12/2019. 3.2 HOWEVER THE APPLICATION WAS REJECTED BY OBSERVING IN IMPUGNED ORDER AS UNDER: ON THE FIXED DATE, THE ASSESSEE FAILED TO PROVIDE THE INFORMATION AS ASKED IN THE QUERY LETTER DATED 04/12/2019. IN ORDER TO FOLLOW THE PRI NCIPLE OF NATURAL JUSTICE, ANOTHER OPPORTUNITY WAS ACCORDED TO THE APPLICANT ON 13/12/ 2019 AND MATTER WAS FIXED FOR 16/12/2019. ON THIS FIXED DATE ALSO, THE APPLICANT HAS FAILED TO PROVIDE THE INFORMATION ASKED. GIVEN THE NON-COMPLIANCE ON THE OCCASION AFF ORDED TO THE ASSESSEE, IT BECOMES EVIDENT THAT THE APPLICANT IS NOT INTERESTED IN PUR SUING THE MATTER. IN THE ABSENCE OF SUBMISSIONS REGARDING THE ACTIVITIES & OTHER DETAIL S, IT IS DIFFICULT TO VERIFY BOTH THE OBJECTS & GENUINENESS OF ACTIVITIES OF THE SOCIETY. IT IS THE REFORE, CONCLUDED THAT THE APPLICANT IS NOT HAVING ANSWER TO THE QUERIES ASKED IN FIXATION LETT ER. 4. FURTHER, KEEPING IN VIEW THE UNRESPONSIVE ATTITU DE OF THE APPLICANT, IT IS CONCLUDED THAT THE ASSESSEE HAS FAILED TO DISCHARGE IT ONUS, THIS BEING A BENEFICIAL CLAUSE FOR THE ASSESSEE, TO PROVE THAT ITS INCOME IS FREE FROM EXIGIBILITY O F TAXES. IN LIGHT OF THE ABOVE, I HAVE NO OPTION BUT TO PROCEED ON MERITS AND REJECT THE APPL ICATION FOR APPROVAL U/S 80G OF THE INCOME TAX ACT, 1961. 4. NOW THE ASSESSEE IS IN APPEAL. 5. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL THE INFORMATIONS WERE PROVIDED TO THE LD. CIT(E) AND THERE WAS NO CHANGE IN THE ACTIVITY AS WELL AS THE OBJECT OF THE ASSESSEE WHICH WERE THERE WHEN THE REGISTRATION UNDER SEC TION 12AA OF THE ACT WAS GRANTED. 6. IN HER RIVAL SUBMISSIONS THE LD. CIT DR STRONGLY SU PPORTED THE ORDER PASSED BY THE LD. CIT(E) AND FURTHER SUBMITTED THAT WHEN THE OPPORTUNIT Y WAS ACCORDED TO THE ASSESSEE, THERE WAS NO COMPLIANCE. THEREFORE THE LD. CI T(E) WAS JUSTIFIED IN REJECTING THE APPLICATION MOVED BY THE ASSESSEE FOR GRANTING THE APPR OVAL UNDER SECTION 80G OF THE ACT. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIE S AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE I T APPEARS THAT THE LD. CIT(E) HAS NOT PROVIDED DUE AND REASONABLE OPPORTUNITY OF BEING HE ARD TO THE ASSESSEE WHICH IS EVIDENT FROM HIS OBSERVATION THAT THE OPPORTUNITY WAS GIVEN TO THE ASSESSEE ON 3 13/12/2019 TO APPEAR ON 16/12/2019. HOWEVER, NOTHING IS BROUGHT ON RECORD AS TO WHAT QUERIES WERE RAISED AND WHICH INFORMATIONS WERE NOT PROV IDED BY THE ASSESSEE. IT IS ALSO NOT CLEAR AS TO WHETHER THERE WAS ANY CHANGE IN THE ACTIVITI ES & OBJECTS OF THE ASSESSEE TRUST WHICH WERE THERE AT THE TIME OF GRANTING THE REGISTR ATION UNDER SECTION 12AA OF THE ACT. 8. WE THEREFORE BY KEEPING IN VIEW THE PECULIAR FACTS OF THIS CASE AS NARRATED ABOVE, DEEM IT APPROPRIATE, TO SET ASIDE THIS CASE BACK TO THE FILE OF LD. CIT(E) TO BE ADJUDICATED AFRESH, IN ACCORDANCE WITH LAW, AFTER PRO VIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 23/02/2021). SD/- SD/- . .. . . . . . . .. . . .. . , ,, , (R.L. NEGI ) ( N.K. SAIN I) 0 0 0 0 / / / / JUDICIAL MEMBER 12 12 12 12 / // / VICE PRESIDENT AG DATE: 23/02/2021 ! 3 43/ COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. CIT 4. THE CIT(E) 5. DR, ITAT, AMRITSAR 6. GUARD FILE