ACIT, Jaipur V. M/S SATWIC JEEVAN SHALA TRUST, Jaipur

ITA 531/JPR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4894 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 01-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K KHANDELWAL
• Keywords: Opportunity of being heard
• Section: 143(3); 12A

Judgement Text

1 ITA 581-12 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH : JAIPUR. BEFORE SHRI B.R. JAIN AND SHRI KUL BHARAT ITA NO. 581/JP/2012 ASSESSMENT YEAR : 2008-09. THE ACIT, CIRCLE-1, VS. M/S. SATWIC JEEVAN SHALA TRUST, JAIPUR. 311, CITY PLAZA, JHOTWARA ROAD, BANI PARK, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.K. KHANDELWAL RESPONDENT BY : SHRI RAJEEV SOGANI DATE OF HEARING : 22.08.2013. DATE OF PRONOUNCEMENT : 22.08.2013. ORDER PER B.R. JAIN, A.M. THIS APPEAL BY REVENUE AGAINST THE ORDER DATED 14. 03.2012 OF LD. CIT (A)-I, JAIPUR RAISES THE FOLLOWING GROUND :- ON THE FACT AND THE CIRCUMSTANCES OF THE CASE AND IN THE LIGHT OF PROVISO TO SECTION 143(3) OF THE INCOME-TAX ACT, 1961, WHET HER THE LD. CIT (A) WAS JUSTIFIED IN DECLARING THE ORDER PASSED U/S 143 (3) VOID AB-INITIO. 2. BRIEFLY THE FACTS ARE THAT THE ASSESSEE IS A TRU ST RUNNING EDUCATIONAL INSTITUTION IN DISTRICT JHUNJHUNU. THE ASSESSEE TRUST WAS HAVING VALID REGISTRATION UNDER SECTION 12A OF THE IT ACT, 1961. THE ASSESSEE WAS ALSO GRANTED EX EMPTION UNDER SECTION 10(23C)(VI) OF THE ACT VIDE ORDER DATED 05.12.2007. DURING THE YE AR UNDER CONSIDERATION THE ASSESSEE 2 HAD SHOWN RECEIPTS OF RS. 6,14,84,968/- AND THE RES ULTANT SURPLUS OF RS. 1,23,80,142/- WAS CLAIMED AS EXEMPT UNDER SECTION 10(23C(VI) OF THE A CT. THE ASSESSING OFFICER WAS OF THE OPINION THAT THE ASSESSEE HAS MANAGED DONORS IN SMALL VILLAGES TO LAUNDER ITS UNACCOUNTED MONEY BY WAY OF DONATIONS IN THE FORM O F SMALL DONATIONS. THE ASSESSING OFFICER, THEREFORE, TREATED THE DONATIONS OF RS. 2, 43,75,420/- AS UNANONIMOUS DONATIONS IN TERMS OF SECTION 115BBC OF THE ACT AND ASSESSED THE INCOME ACCORDINGLY. 3. THE LD. CIT (A), HOWEVER, ON EXAMINATION OF FACT S AND EVIDENCES FOUND THAT ADDITION OF DONATIONS TO THE CORPUS FUND DOES NOT A PPEAR TO BE JUSTIFIED AS THERE IS NO EVIDENCE WITH THE ASSESSING AUTHORITY TO SAY THAT T HESE ARE MANAGED DONATIONS OR THAT THEY ARE TAKEN IN THE NAMES OF UNANONIMOUS PERSONS. IN THE ULTIMATE CONCLUSION, SHE FOUND THAT AS PER THE PROVISO UNDER SECTION 143(3) OF THE ACT, NO ORDER MAKING AN ASSESSMENT OF THE TOTAL INCOME OR LOSS CAN BE MADE BY THE ASSESSI NG OFFICER UNLESS THE ASSESSING OFFICER HAS INTIMATED THE CENTRAL GOVERNMENT REGARDING THE CONTRAVENTION OF PROVISIONS OF SECTION 10(23C)(VI) BY THE ASSESSEE AND THE APPROVA L GRANTED IS WITHDRAWN. IN THE CASE OF THE APPELLANT THIS PROCEDURE HAS NOT BEING FOLLOWED BY THE ASSESSING OFFICER. THE ORDER U/S 143(3) WAS, THEREFORE, HELD TO BE VOID AB-INITI O AND THUS DELETED THE ADDITION. 4. HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECO RD INCLUDING WRITTEN SUBMISSIONS BY RESPONDENT. THE LD. CIT (A) IS FOUND TO HAVE ACT ED BEYOND THE SCOPE OF HER POWERS IN QUASHING THE ASSESSMENT MADE UNDER SECTION 143(3) O F THE ACT BY HOLDING IT VOID AB- INITIO WITHOUT QUASHING THE NOTICE ISSUED UNDER SEC TION 143(2) OF THE ACT. SINCE THE ASSESSING AUTHORITY HAD VALID JURISDICTION IN ISSUI NG NOTICE UNDER SECTION 143(2) OF THE ACT, THE QUASHING OF ASSESSMENT AS SUCH IS NEITHER JUSTIFIED NOR TENABLE IN LAW. WE, THEREFORE, SET ASIDE HER ORDER AND REMIT THE MATTER BACK TO THE FILE OF LD. CIT (A)-I, JAIPUR 3 SO THAT THE DECISION IS RENDERED AFRESH ON THE MERI TS OF THE ISSUE AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO BOTH THE PARTIES. 5. IN THE RESULT, THE APPEAL STANDS ALLOWED FOR STA TISTICAL PURPOSES AS ANNOUNCED IN THE OPEN COURT IN THE PRESENCE OF PARTIES IMMEDIATELY A FTER CONCLUSION OF HEARING ON 22.08.2013. SD/- SD/- ( KUL BHARAT ) ( B. R. JAIN ) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR, DATED : 22/08/2013. D/- COPY FORWARDED TO :- THE ACIT, CIRCLE-1, JAIPUR. M/S. SATWIC JEEVAN SHALA TRUST, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 581/JP/2012. BY ORDER, AR ITAT JAIPUR.