Centre For Education Research & Training Trust, Sambalpur V. CIT(Exemptions), Hyderabad

ITA 524/CTK/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6263 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 29-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.M.KESAKAMAT
• Assessee Lawyers: SHRIB.R.PANDA
• Keywords: Principle of natural justice; Set aside
• Section: 80G; 12AA; 201

Judgement Text

P A G E 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO . 524 /CTK/201 7 CENTRE FOR EDUCATION RESEARCH & TRAINING TRUST, TURIPADA, DHANUPALI, SAMBALPUR VS. CIT (EXEMPTIONS), HYDERABAD. PAN/GIR NO. AABTC 4802 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI B.R.PANDA , AR REVENUE BY : SHRI S.M.KESAKAMAT , DR DATE OF HEARING : 11 / 0 6 / 201 9 DATE OF PRONOUNCEMENT : 1 1 / 0 6 / 201 9 O R D E R PER LAXMI PRASAD SAHU, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD CIT(EXEMPTIONS), HYDERABAD DATED 22.9.2017. 2. THE ASSESSEE HAS FILED THE FOLLOWING GROUNDS IN ITS APPEAL: (1) FOR THAT NATURAL JUSTICE HAS BEEN VIOLATED BY THE LEARNED CIT (EXEMPTIONS) (I/C), HYDERABAD IN THE IMPUGNED CASE AS HE HAS NOT GRANTED ANY OPPORTUNITY FOR HEARING AND HAS PASSED THE ORDER ON THE BASIS OF ENQUIRY REPORT OF THE INCOME TAX OFFICER (EXEMPTIONS), SAMBALPUR. (2) FOR THAT THE LEARNED CIT (EXEMPTIONS) (I/C), HYDERABAD HAS ERRED IN REJECTING THE APPLICATION FOR REGISTR ATION U/S. 12AA OF ITA NO .524 /CTK/201 7 CENTRE FOR EDUCATION RESEARCH & TRAINING P A G E 2 | 4 THE INCOME TAX ACT IN THE IMPUGNED CASE ON THE PLEA OF NON - REGISTRATION OF RESOLUTIONS, PASSED FOR AMENDING THE TRUST DEED. (3) FOR THAT IT IS NEEDLESS TO SAY THAT PRACTICALLY IT IS NOT POSSIBLE FOR REGISTRATION OF RESOLUTIONS (TO BE AMENDED FROM TIME TO TIME); THAT IS WHY THE LAW MAKERS IN ANY ACT HAVE NOT PROVIDED ANY SUCH MANDATORY PROVISION. HENCE IN ABSENCE OF ANY MANDATORY PROVISION FOR THE SAKE OF TECHNICALITIES THE REJECTION ORDER PASSED BY THE LEARNED CIT (E XEMPTIONS) (I/C), HYDERABAD HAS NO LEGS TO STAND. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE TRUST FILED APPLICATION IN FORM NO. 1 OA ON 23.03.2017 SEEKING REGISTRATION U/S. 1 2AA OF THE INCOME TAX ACT, 1961 ('THE ACT' IN SHORT). THE CIT(EXEMPTIONS) R EQUIRED THE ASSESSEE TRUST TO PRODUCE ITS ORIGINAL TRUST DEED FOR VERIFICATION AND TO FURNISH DETAILED REPLY ON SPECIFIC POINTS RAISED BY HIM . ON PERUSAL OF THE INFORMATION FURNISHED BY THE ASSESSEE TRUST, THE CIT(E) OBSERVED THAT TRUST HAD APPLIED FOR EXEMPTION U/S. 12AA AND 80G BEFORE THE CIT(E), HYDERABAD ON 30.03.2015 AND THE SAME WAS REJECTED VIDE ORDER IN F.NO. CIT(E)/ (3)/BBSR/12A/2014 - 15, DATED. 28.09.2017 ON THE GROUNDS THAT THE MEMBERS OF THE TRUST PASSED A RESOLUTION ON 04.09.2015 FOR AMENDING THE TRUST DEED DATED, 21.01.2013 BY INCORPORATING THE REQUIRED CLAUSES AS PER THE A CT. HOWEVER, THEY HAD NOT SUBMITTED THE RESOLUTION FOR REGISTRATION BEFORE THE REGISTERING AUTHORITY AND NO SUCH EVIDENCE WAS FILED. FURTHER, THE CIT (E) FURTHER OBSERVED THAT BEFORE HIM ALSO THE ASSESSEE TRUST HAS NOT FILED THE RESOLUTION PASSED ON 4.9.2015 BEFORE THE REGISTERING AUTHORITY. HENCE, HE WAS OF THE VIEW THAT THE RESOLUTION PASSED CANNOT BE TAKEN COGNIZANCE OF WITHOUT REGISTERING BEFORE THE REGISTERING AUTHORITY AND DENIED THE GRANT OF REGISTRATION U/S.12A OF THE ACT. ITA NO .524 /CTK/201 7 CENTRE FOR EDUCATION RESEARCH & TRAINING P A G E 3 | 4 3. AT THE TIME OF HEARING, LD A.R. FILED A COPY OF AMENDED TRUST DEED DULY NOTORISED ON 4.9.2015 AND SUBMITTED THAT THE TRU ST DEED WAS E - REGISTERED BEARING NO.11621300352 DATED 21.1.2013 AND BASED ON IT, CERTAIN CLAUSES WERE MODIFIED AND AMENDED TO THE TRUST DEED. HE SUBMITTED THAT IT IS NOT PRACTICALLY POSSIBLE FOR REGISTRATION OF RESOLUTIONS AND THERE IS NO MANDATORY PROVIS ION TO REGISTER THE RESOLUTION WHICH ARE TO BE AMENDED FROM TIME TO TIME. 4. ON THE OTHER HAND, LD DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE AMENDED DEED ALONGWITH ORIGINAL DEED SHOULD BE FILED DULY CERTIFIED BY THE TRUST REGISTERING AUTHORITY BUT THE ASSESSEE HAS FAILED TO DO SO. THEREFORE, THE CIT(E) HAS RIGHTLY DENIED THE REGISTRATION TO THE ASSESSEE. 5. AFTER HEARING THE RIVAL SUBMISSIONS, WE FIND THAT THE CIT(E) HAS REJECTED THE GRANT OF REGISTRATION U/S.12AA OF THE ACT ON THE GROUND THAT THE RESOLUTION HAS NOT BEEN REGISTERED. BEFORE US, THE ASSESSEE HAS FILED THE MODIFIED AMENDED TRUST DEED DULY NOTORISED ON 4.9.2015, SUBSEQUENT TO ORIGINAL REGISTRATION OF THE TRUST DEED ON 21.1.2013. IN THESE CIRCUMSTANCES, IN OUR CONSIDERED OPINION, IT SHALL BE IN THE INTEREST OF JUSTICE TO SET ASIDE THE IMPUGNED ORDER OF THE CIT(E) AND RESTORE THE MATTER BACK TO ITA NO .524 /CTK/201 7 CENTRE FOR EDUCATION RESEARCH & TRAINING P A G E 4 | 4 HIS FI LE FOR ADJUDICATION AFRESH FOR GRANT OF REGISTRATION U/S.12AA OF THE INCOME TAX ACT AFTER TAKING INTO CONSIDERATION THE MODIFIED TRUST DEED ON 4.5.2015 . WE ALSO DIRECT THE ASSESSEE TRUST TO FILE THE MODIFIED TRUST DEED BEFORE THE CIT(E) DULY REGISTERED WITH TRUST REGISTERING AUTHORITY FOR GRANT OF REGISTRATION U/S.12AA OF THE ACT. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE ALLOWED REASONABLE OPPORTUNITY OF HEARING BEFORE ADJUDICATING THE ISSUE AFRESH. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 1 1 / 0 6 /201 9 . SD/ - SD/ - ( CHANDRA MOHAN GARG ) (LAXMI PRASAD SAHU) JUDICIALMEMBER ACCOUNTANT MEMBER CUTTACK; DATED 11 / 0 6 /20 9 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK 1. THE APPELLANT : CENTRE FOR EDUCATION RESEARCH & TRAINING TRUST, SAMBALPUR 2. THE RESPONDENT. CIT(E) HYDERABAD. 3. THE CIT(A) - , BHUBANESWAR . 4 . DR, ITAT, CUTTACK 5 . GUARD FILE. //TRUE COPY//