M/S. Vana Foundation, Lucknow V. Commissioner of Income Tax (Exemptions), Lucknow

ITA 544/LKW/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0234 (ITAT-LUCKNOW)
• Duration Of Justice: 11 month(s) 24 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 27-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 03-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K MADHUK
• Assessee Lawyers: A P SINHA
• Keywords: Charitable institution; Set aside
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 544/LKW/2018 ASSESSMENT YEAR: 2018 - 19 M/S VANA FOUNDATION KHASRA NO.165, VILLAGE MALSI MUSSOO RIE DIVERSION ROAD DEHRADUN V. CIT (EXEMPTIONS) LUCKNOW T AN /PAN : AAFCV7275C (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI A. P. SINHA, ADVOCATE RESPONDENT BY: SHRI S. K. MADHUK, CIT (DR) DATE OF HEARING: 16 0 5 201 9 DATE OF PRONOUNCEMENT: 16 0 5 201 9 O R D E R PER A. D. JAIN, V.P . : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE CIT (EXEMPTIONS), LUCKNOW, DATED 24/4/2018, REJECTING THE APPLICATION FOR APPROVAL UNDER SECTION 80G(5) OF THE ACT. 2 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE SOCI ETY FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 80G(5) OF THE ACT ON 16/11/2017 WITH THE CIT (EXEMPTIONS), LUCKNOW. THE LD. CIT (EXEMPTIONS) REJECTED THE APPLICATION OF THE ASSESSEE, OBSERVING THAT THE APPLICANT IS NOT ENGAGED IN ANY CHARITABLE P URPOSE , WHICH IS THE PREREQUISITE FOR APPROVAL UNDER SECTION 80G OF THE ACT. 3 . THE MAIN ARGUMENT OF THE LD. A.R. OF THE ASSESSEE BEFORE US WAS THAT WITHOUT CONSIDERATION OF THE SUBMISSIONS FILED BY THE ASSESSEE AND WITHOUT ACCORDING DUE OPPORTUNITY OF HEA RING TO THE ASSESSEE, THE ITA NO.544/LKW/2018 PAGE 2 OF 3 LD. CIT (EXEMPTIONS) PASSED HIS ORDER . T HEREFORE, THE ORDER OF THE LD. CIT (EXEMPTIONS) MAY BE SET ASIDE AND THE MATTER MAY BE RESTORED TO HIS FILE FOR DECIDING THE SAME AFRESH AFTER AFFORDING DUE OPPORTUNITY OF HEARING TO THE AS SESSEE . 4 . THE LD. D.R. HAD NO OBJECTION TO THE PRAYER MADE BY THE LD. A.R. OF THE ASSESSEE. 5 . HEARD. WE FIND THAT THE LD. CIT (EXEMPTIONS) HAD REJECTED THE APPLICATION OF THE ASSESSEE FOR APPROVAL UNDER SECTION 80G OF THE ACT, OBSERVING THAT THE APPLICANT IS NOT ENGAGED IN ANY CHARITABLE PURPOSE . HE MENTIONED IN HIS ORDER CERTAIN DATES OF HEARING, BUT ON THE LAST DATE OF HEARING, I.E., ON 23/4/2018, HE DECIDED THE APPEAL IN THE ABSENCE OF THE ASSESSEE , AFTER CONSIDERING THE PART REPLY RECEIVED FROM THE ASSE SSEE BY POST . THE CIT (EXEMPTIONS) HAD PASSED THE ORDER AND REJECTED THE APPLICATION OF THE ASSESSEE FOR APPROVAL UNDER SECTION 80G OF THE ACT IN THE ABSENCE OF THE ASSESSEE AND AFTER CONSIDERING PART REPLY RECEIVED FROM THE ASSESSEE . IN TH IS VIEW OF TH E MATTER , WE FEEL THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO EXPLAIN ITS CASE BEFORE THE LD. CIT (EXEMPTIONS). WE ARE OF THE VIEW , FROM THE FACTS OF THE CASE , THAT THE ASSESSEE HAS NOT BEEN GIVEN PROPER AND SUFFICIENT OPPORTUNITY BEFORE DISPOSING OF THE APPLICATION FOR APPROVAL , BY THE LD. CIT (EXEMPTIONS). WE, THEREFORE, IN THE INTEREST OF JUSTICE, SET ASIDE THE ORDER OF THE LD. CIT (EXEMPTIONS) AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO CONSIDER THE APPLICATION OF THE ASS ESSEE FOR APPROVAL UNDER SECTION 80G OF THE ACT, AFRESH AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO BE PRESENT ON THE DATE OF HEARING AND PROVIDE THE MATERIAL / CLARIFICATION AS ASKED FOR BY THE LD. CIT (EXEMPTIONS). ITA NO.544/LKW/2018 PAGE 3 OF 3 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 / 0 5 /201 9 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 16 /0 5 / 20 1 9 JJ: 1605 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR BY ORDER ASSISTANT REGISTRAR