M/s. Audyogik Shikshan Mandal, Pune V. ITO, Wd 8(1), Pune, Pune

ITA 548/PUN/2008

• Counselvise Citation: 54824514 RSA 2008
• Duration Of Justice: 3 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-05-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 22-04-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R KAUSHAL
• Keywords: Reasonable cause
• Section: 10B; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH: B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JM AND SHRI G.S. PANNU, AM I.T.A. NO. 548/PN/2008 : A.Y. 2002-03 M/S. AUDYOGIK SHIKSHAN MANDAL C BLOCK, MIDC CHINCHWAD, PUNE-19 PAN AAATA 8518 P APPELLANT VS. I.T.O. WARD 8(1) PUNE RESPONDENT APPELLANT BY : SHRI KISHORE PHADKE RESPONDENT BY: SHRI R. KAUSHAL ORDER PER SHAILENDRA KUMAR YADAV THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-III PUNE DATED 31-1-2008 FOR A. Y. 2002-03 ON THE FOLLOWING GROUND: THE LEARNED CIT(A)-III PUNE ERRED IN LAW AND ON FA CTS IN CONFIRMING THE ITO, WARD 8(1)S ORDER DENYING OF EXEMPTION U/S 11 OF THE IT ACT. 2. THE ASSESSEE-TRUST IS CLAIMED TO BE ENGAGED FOR PROMOTION OF EDUCATION, WHICH WAS INCORPORATED ON 4 -5-1983. THE ASSESSEE IS CLAIMED TO RUN SO MANY EDUCATIONAL COURSES. THE ASSESSING OFFICER OBSERVED THAT THE TRUST IS NO T ELIGIBLE FOR BENEFIT OF SECTION 11 AND 12 OF THE ACT IN ABSENCE OF FORM 10B. ITA NO. 548/PN/2008 AUDYOGIK SHIKSHAN MANDAL A.Y. 2002-03 - 2 - AS SUCH, THE ASSESSING OFFICER BROUGHT THE AMOUNT O F RS. 3,36,31,937/- TO TAX WHICH WAS CONFIRMED BY THE CIT(A). 3. THE OBJECTION OF HE ASSESSEE IS THAT FORM 10B FO R EXEMPTION WAS FILED AT THE APPELLATE STAGE. SO, TH E CIT(A) WAS NOT JUSTIFIED IN REJECTING THE CLAIM OF THE ASSESSE E FOR REGISTRATION U/S 11 OF THE ACT FOR EXEMPTION. THE STAND OF THE ASSESSEE BEFORE US IS THAT THE ASSESSEES EARLIER A UDITOR SHRI V.P. SHAH, CHARTERED ACCOUNTANT WAS LOOKING AFTER THE INCOME-TAX WORKS. HE IS CLAIMED TO HAVE LEFT INDI A AND BECAUSE OF THIS, THE ASSESSEE COULD NOT FILE THE RE QUISITE AUDIT REPORT AT RELEVANT POINT OF TIME. THE LEARNED AR H AS ALSO FILED AN AFFIDAVIT OF MR. ACJHARYA TO SUBSTANTIATE THE CL AIM OF REASONABLE CAUSE FOR NON-FILING OF THE REQUISITE AU DIT REPORT WITHIN TIME. HOWEVER, THE CIT(A) HAS NOT ACCEPTED THE SAME. MR. ACHARYA HAS ALSO DEPOSED THE ABOVE SAID AFFIDAV IT BY WAY OF AFFIDAVIT WHICH IS PLACED AT PAGE 52 TO 54 OF TH E PAPER BOOK, INTER ALIA, EXPLAINED THE REASONABLE CAUSE BY WHICH THE ASSESSEE WAS PREVENTED TO FILE THE REQUISITE AUDIT REPORT WITHIN TIME. HOWEVER, THE SAME IS CLAIMED TO HAVE BEEN PRO DUCED BEFORE THE CIT(A). SO, THE CIT(A) WAS NOT JUSTIFIED IN REJECTING THE CONTENTS OF THE AFFIDAVIT. ACCORDING TO THE LE ARNED AR, THE CIT(A) SHOULD HAVE ENTERTAINED THE REQUISITE AUDIT REPORT FILED ITA NO. 548/PN/2008 AUDYOGIK SHIKSHAN MANDAL A.Y. 2002-03 - 3 - AT APPELLATE STAGE AND WITH REGARD TO THE SAME LEGA L PROPOSITION, THE LEARNED AR RELIED ON VARIOUS CASE LAWS. SO, THE LEARNED AR REQUESTED TO SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER. ON THE OTHER HAND, THE LEA RNED DR VEHEMENTLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. HOWEVER, IN THE ALTERNATIVE, THE LEARNED DR SUBMITT ED THAT IN CASE THE MATTER IS RESTORED TO THE FILE OF THE ASS ESSING OFFICER EVERYTHING SHOULD BE OPEN BEFORE HIM FOR ADJUDICAT ING THE ISSUE AT HAND. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAS FILED THE REQUISITE AUDIT REPORT AT APPELLATE STAGE WHICH WAS NOT ENTER TAINED BY THE CIT(A) INSPITE OF THE FACT THAT THE REASONS FOR NON-FILING OF THE REQUISITE AUDIT REPORT AT THE RELEVANT POINT OF TIME WERE GIVEN AT APPELLATE STAGE. SAME SHOULD HAVE BEEN JUD ICIOUSLY APPRECIATED WHICH HAS NOT BEEN DONE. SO IN THE INT EREST OF JUSTICE, WE RESTORE THIS ISSUE TO THE FILE OF THE A SSESSING OFFICER WITH A DIRECTION TO DECIDE THE SAME AS PER FACT AND LAW AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEARING TO THE AS SESSEE. SINCE WE ARE RESTORING THE MATTER TO THE FILE OF TH E ASSESSING OFFICER ON A PRELIMINARY ISSUE, WE ARE REFRAINED TO COMMENT ON THE MERITS OF THE ISSUE AT HAND. ITA NO. 548/PN/2008 AUDYOGIK SHIKSHAN MANDAL A.Y. 2002-03 - 4 - 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY 2011. SD/- SD/- (G.S. PANNU) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED THE 31 ST MAY 2011. ANKAM COPY OF ORDER FORWARDED TO : 1. ASSESSEES 2. DEPARTMENT 3. CIT(A) I PUNE 4. CIT - I PUNE 5. ITAT, D.R. B BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE.