Fiji Lakshman Foundation, CHENNAI V. DIT (Exemptions), CHENNAI

ITA 571/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61198 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 16-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY PUNGLIA JT
• Assessee Lawyers: T BANUSEKAR
• Keywords: Principle of natural justice
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI [BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER] I.T.A.NO.571/MDS/2012 ASSESSMENT YEAR : N.A FIJI LAKSHMAN FOUNDATION NEW NO.22, OLD NO.40 SIR MADHAVAN ROAD MAHALINGAPURAM CHENNAI 600 034 VS THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) CHENNAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T. BANUSEKAR, CA RESPONDENT BY : SHRI SANJAY PUNGLIA, JT. CIT DATE OF HEARING : 06-06-2012 DATE OF PRONOUNCEMENT : 06-06-2012 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASS ESSEE AGAINST THE ORDER OF THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) [DIT(E)], C HENNAI, DATED 27.1.2012, BY RAISING THE FOLLOWING GROUNDS OF APPE AL: 1. FOR THAT THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS) IS CONTRARY TO LAW, FACTS AND CIRCUMST ANCES OF THE CASE AND AT ANY RATE IS OPPOSED TO THE PRINCIPLES OF EQUITY, NATURAL JUSTICE AND FAIR PLAY . I.T.A.NO. 571/2012 :- 2 -: 2. FOR THAT THE DIRECTOR OF INCOME TAX (EXEMPTIONS) ERRED IN NOT GRANTING THE REGISTRATION U/S . 12AA OF THE INCOME TAX ACT . 3. FOR THAT THE DIRECTOR OF INCOME TAX (EXEMPTIONS) FAILED TO GRANT SUFFICIENT TIME TO FILE THE DETAILS AS CALLED FOR BY HIM. 4. FOR THAT THE APPELLANT WAS UNABLE TO FILE THE D ETAILS AS CALLED FOR BY THE DIRECTOR OF INCOME TAX (EXEMPT IONS) DUE TO REASONS BEYOND THE CONTROL OF THE APPELLANT . 5. FOR THESE GROUNDS AND SUCH OTHER GROUNDS THAT MAY BE URGED BEFORE OR DURING THE HEARING OF THE APPEAL IT IS MOST HUMBLY PRAYED THAT THE HON'BLE TRIBUNAL MAY BE PLEASED TO (A) GRANT REGISTRATION U/S.12AA WITH EFFECT FROM T HE DATE OF FORMATION OF THE TRUST OR (B) SET ASIDE TO THE DIRECTOR OF INCOME TAX (EXEMP TIONS) TO RECONSID ER THE APPLICATION FOR REGISTRATION OR (C) PASS SUCH OTHER ORDERS AS THE HONBLE TRIBUNA L MAY DEEM FIT. 2. THE ONLY ISSUE INVOLVED IN THE ABOVE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE IS THAT THE DIT(E) ERRED IN NOT GR ANTING REGISTRATION U/S 12AA OF THE ACT. 3. THE FACTS, AS NARRATED BY THE DIT(E) IN HIS ORDER, ARE THAT VIDE LETTER DATED 8.11.2011, THE ASSESSEE-TRUST WA S REQUESTED TO OFFER THEIR CLARIFICATION AND WAS ALSO REQUESTED TO FURNI SH ADDITIONAL INFORMATION WHICH ARE AS FOLLOWS: (A) IMMEDIATE PLAN OF ACTION. (B) THE TIME FRAME FOR IT. (C) THE RESOURCES FOR IT. I.T.A.NO. 571/2012 :- 3 -: (D) THE SPECIFIC AREA (LOCALITY) WHERE THE ACTIVITY IS PROPOSED. (E) THE IMPACT AIMED/SOUGHT TO BE ACHIEVED. (F) INCOME TAX PARTICULARS OF THE TRUSTEES/MANAGE RS SUCH AS GI NO./PAN/CIRCLE IN WHICH ASSESSED, ETC. & THEI R ANTECEDENTS INCLUDING CHARITABLE ACTIVITY DONE SO F AR. (G) DETAILS OF ACTIVITIES CARRIED OUT SO FAR WITH SUPPO RTING EVIDENCE. (H) PHONE NO. VIZ. LAND LINE AND MOBILE OF THE INSTITUTION/TRUSTEES & MANAGERS OF THE INSTITUTION. (I) COPY OF BANK ACCOUNT, IF ANY, MAINTAINED FOR T HE F.Y PERTAINING TO THE YEAR OF APPLICATION. (J) REPLY TO THE QUERIES RAISED. 4. IT IS FURTHER STATED IN THE ORDER THAT THE HEARING WAS FIXED ON 25.11.2011 AND THAT BY A LETTER DATED 1.12.2011, AU THORIZED REPRESENTATIVE OF THE ASSESSEE REQUESTED TIME TILL 15.12.2011 TO SUBMIT THE DETAILS CALLED FOR. SINCE THE DETAILS W ERE NOT RECEIVED, THE DIT(E) DISMISSED THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. 5. THE A.R OF THE ASSESSEE SUBMITTED BEFORE US THAT ONLY ONE OPPORTUNITY OF HEARING WAS GRANTED TO THE ASSESSEE AND THE APPLICATION OF THE ASSESSEE WAS DISMISSED. HE SUB MITTED THAT THE DETAILS CALLED FOR ARE AVAILABLE WITH THE ASSESSEE AND CAN BE FURNISHED BEFORE THE DIT(E) IF ONE MORE OPPORTUNITY WAS GRANT ED TO THE ASSESSEE. THE DR DID NOT OBJECT TO THE ABOVE SUB MISSIONS MADE BY THE A.R OF THE ASSESSEE. I.T.A.NO. 571/2012 :- 4 -: 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND THE MAT ERIALS ON RECORD, IT IS OBSERVED THAT THE DIT(E) CALLED FOR C ERTAIN INFORMATIONS AND DETAILS VIDE LETTER DATED 8.11.2011 BY FIXING T HE DATE FOR HEARING ON 25.11.2011. THE A.R OF THE ASSESSEE REQUESTED FOR FURTHER TIME TILL 15.12.2011 AND AS THE DETAILS CALLED FOR WERE NOT F ILED BY THAT TIME, THE DIT(E) DISMISSED THE APPLICATION FOR REGISTRATI ON OF THE ASSESSEE- TRUST U/S 12AA OF THE ACT. IN OUR CONSIDERED OPIN ION, THE DIT(E) SHOULD HAVE GRANTED FURTHER TIME TO THE ASSESSEE B EFORE DISMISSING THE APPLICATION FOR REGISTRATION OF THE ASSESSEE-T RUST. FURTHER, THE LD. A.R OF THE ASSESSEE HAS MADE A STATEMENT AT THE BAR THAT THE DETAILS CALLED FOR BY THE DIT(E) ARE AVAILABLE WITH THE AS SESSEE AND GIVEN AN OPPORTUNITY THE SAME CAN BE FILED BEFORE HIM. THE LD. DR HAS NO OBJECTION TO GRANTING ONE MORE OPPORTUNITY TO THE ASSESSEE FOR FILING THE REQUIRED DETAILS BEFORE THE DIT(E). WE ARE ALS O OF THE CONSIDERED OPINION THAT IN THE INTEREST OF JUSTICE, ONE MORE O PPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE TO MEET THE REQUIREMENTS O F DIT(E). WE, THEREFORE, SET ASIDE THE ORDER OF THE DIT(E) DATED 27.1.2012 AND REMAND THE MATTER BACK TO HIS FILE TO RE-ADJUDICATE THE ISSUE OF GRANTING OF REGISTRATION U/S 12AA OF THE ACT TO TH E ASSESSEE-TRUST. THE ASSESSEE IS ALSO DIRECTED TO FILE ALL THE DETA ILS AND INFORMATIONS AS AND WHEN CALLED FOR BY THE DIT(E). THE DIT(E) SHAL L, THEREAFTER, VERIFY ALL THE DETAILS AND ADJUDICATE THE ISSUE OF GRANTI NG OF REGISTRATION TO THE ASSESSEE-TRUST U/S 12AA OF THE ACT AS PER LAW . NEEDLESS TO I.T.A.NO. 571/2012 :- 5 -: MENTION THAT HE SHALL ALLOW SUFFICIENT AND REASONAB LE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE RE-ADJUDICATION OF THE ISSUE. WITH THESE DIRECTIONS, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 06 TH OF JUNE, 2012, AT CHENNAI SD/- SD/- (V. DURGA RAO) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER DATED: 06 TH JUNE, 2012 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR