M/s Paul Ministries, Kakinada V. The Commissiner of Income Tax, Rajahmundry

ITA 52/VIZ/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0720 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 02-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Keywords: Opportunity of being heard; Set aside
• Section: 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.52/VIZAG/2010 ASSESSMENT YEAR : NA M/S. PAUL MINISTRIES, KAKINADA CIT, RAJAHMUNDRY (APPELLANT) VS. (RESPONDENT) PAN NO.AABTP 5977E APPELLANT BY: SHRI D.L. NARASIMHA RAO, ADVOCATE RESPONDENT BY: SHRI G.S.S. GOPINATH, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT DENYING THE REGISTRATION U/S 12AA(1)(B) OF THE I.T. ACT. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. 2. THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE PARA- 2 OF THE ORDER OF THE CIT WITH THE SUBMISSIONS THAT THE CIT HAS NOT AFFORDED A PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEES AND HE HAS DENIED THE REGISTRATION U/S 12A OF THE ACT AFTER HAVING OBSERV ED THAT THE BENEFITS OF CHARITABLE ACTIVITIES UNDERTAKEN BY THE ASSESSEES E NURED ON ALL THE PERSONS WHO PROFESSES CHRISTIANITY. THEREFORE, THE CONDITI ON STIPULATED U/S 11 OF THE ACT WERE NOT SATISFIED. THE LD. COUNSEL FOR THE AS SESSEE HAS INVITED OUR ATTENTION TO THE DETAILS OF CHARITABLE ACTIVITIES P ERFORMED BY IT AND ALSO THE DETAILS OF PERSONS WHO WERE BENEFITED BY THE CHARIT ABLE ACTIVITIES OF THE ASSESSEES. ALL THESE DETAILS COULD NOT BE PRODUCED BEFORE THE CIT BECAUSE HE HAS NOT AFFORDED SUFFICIENT TIME TO THE ASSESSEES F OR FILING THE RELEVANT PAPERS. HE HAS ALSO FILED THE CASTE/RELIGION CERTI FICATES IN SUPPORT OF THE CONTENTIONS THAT BENEFIT OF THE CHARITABLE ACTIVITI ES WERE EXTENDED TO THE PERSONS BELONGING TO OTHER CASTE OR RELIGIONS. 2 3. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTEND ED THAT SINCE THE CONDITIONS STIPULATED U/S 11 ARE FULFILLED THE REGI STRATION U/S 12AA BE GRANTED TO THE ASSESSEES. 4. THE LD. D.R. PLACED A HEAVY RELIANCE UPON THE OR DER OF THE CIT. 5. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT I N THE LIGHT OF RIVAL SUBMISSIONS, WE FIND THAT CIT HAS ISSUED ONE NOTICE DATED 16.11.2009 FIXING THE DATE OF HEARING ON 23.11.2009. ON THE DATE OF HEARING NONE APPEARED ON BEHALF OF THE ASSESSEES AND THE CIT PROCEEDED WITH THE DISPOSAL OF THE REQUEST OF THE ASSESSEES. WHATEVER INVESTIGATIONS ARE MADE THROUGH ITO, IT WAS AT THE BACK OF THE ASSESSEES AND THE INQUIRY RE PORT WAS NEVER CONFRONTED TO THE ASSESSEES FOR HIS COMMENTS. FROM THE PERUSA L OF THE ORDER OF THE CIT, WE FIND THAT IT WAS FIXED FOR HEARING ONLY FOR ONE DAY AND THEREAFTER NO OPPORTUNITY WAS GRANTED TO THE ASSESSEE TO PROSECUT E HIS CASE. THE FACTS AVAILABLE FROM THE ORDER OF THE CIT CLEARLY SUGGEST THAT NO PROPER OPPORTUNITY WAS AFFORDED TO THE ASSESSEES. WE THEREFORE OF THE VIEW THAT THE REQUEST OF THE ASSESSEES REQUIRES A FRESH ADJUDICATION BY THE CIT. ACCORDINGLY, WE SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER TO HI S FILE WITH DIRECTION TO RE- EXAMINE THE ISSUE OF REGISTRATION U/S 12AA OF THE A CT AFTER AFFORDING A PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 4.6.2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 4 TH JUNE, 2010 3 COPY TO 1 THE CIT, RAJAHMUNDRY 2 PAUL MINISTRIES, D.NO.3-16B-64, PLOT NO.37, POSTA L COLONY, KAKINADA, E.G. DIST. 3 THE CIT(A), RAJAHMUNDRY 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM