Ananda Siksha Niketan, Kolkata V. CIT - Exemptions, Kolkata, Kolkata

ITA 595/KOL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4364 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 12-05-2015
• Court: TRIBUNAL
• Department Lawyers: G MALLIKARJUNA
• Assessee Lawyers: MIRAJ D SHAHAR
• Keywords: Opportunity of being heard

Judgement Text

ITA NOS.595&596/KOL/2015-ANANDA SIKSHA NIKETAN 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C, KOLKATA (BEFORE SHRI N. V. VASUDEVAN,J.M. & SHRI M. BALAGAN ESH, A.M.) ITA NOS. 595 & 596/KOL/2015 : AS STT. YEAR : ANAND SIKSHA NIKETAN, KOLKATA. PAN: AACAA2299L VS CIT (EXEMPTION), KOLKATA. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI MIRAJ D SHAH,AR. REVENUE BY : SHRI G. MALLIKARJUNA, CIT,DR DATE OF HEARING : 20.09.2016 DATE OF PRONOUNCEMENT : 19 -10-2016 ORDER PER SHRI N. V. VASUDEVAN, J.M . ITA NO.595/KOL/2015: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORD ER DATED 31/03/2015 PASSED BY THE CIT (EXEMPTION),KOLKATA PA SSED U/S.12AA OF THE INCOME-TAX ACT 1961(ACT). ITA NO.596/KOL/2015: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORD ER DATED 31/05/2015 PASSED BY THE CIT (EXEMPTION), KOLKATA P ASSED U/S.80G (5) (VI) OF THE INCOME-TAX ACT 1961(ACT). 2. THE ASSESSEE IS A SOCIETY UNDER THE SOCIETIES RE GISTRATION ACT OF THE STATE OF WEST BENGAL. IT IS ENGAGED IN EDUCATING POOREST SE CTION OF THE SOCIETY. IT IS THE CLAIM OF THE ASSESSEE THAT THE SOCIETY IS RUN BY ON E MR. BABER ALI WHO IS AN INDIAN STUDENT AND TEACHER FROM MURSHIDABAD IN WEST BENGAL . IT IS THE FURTHER CLAIM OF THE ASSESSEE THAT MR.BABER ALI WAS CALLED THE YOUNGEST HEADMASTER IN THE WORLD BY BBC IN OCTOBER 2009, AT THE AGE OF SIXTEEN. HE HAD BEGUN TEACHING AT NINE YEARS ITA NOS.595&596/KOL/2015-ANANDA SIKSHA NIKETAN 2 OF AGE, MOSTLY AS A GAME, AND THEN DECIDED TO CONTI NUE TEACHING OTHER CHILDREN AT A LARGER SCALE. IT IS CLAIMED THAT THE SCHOOL CONTINU ES TO BE RUN AS AN OUTDOOR SCHOOL AND COUNTS A TOTAL OF TEN TEACHERS INCLUDING BABER ALI HIMSELF, ALL OF THEM STUDENTS AT SCHOOL OR COLLEGE WHO VOLUNTEER TO TEACH AT THE SCHOOL. IT IS FURTHER CLAIMED THAT THERE ARE 800 CHILDREN LEARNING AT THE SCHOOL, STAR TING FROM FOUR OR FIVE YEARS OF AGE AND BECAUSE THE SCHOOL IS TUITION-FREE MAKES IT AFF ORDABLE FOR THE POOR IN THIS ECONOMICALLY DEPRIVED AREA, SO THAT THE SCHOOL HAS BEEN RECOGNIZED TO HAVE HELPED INCREASE LITERACY RATES IN THE AREA. IT IS CLAIMED THAT IN MURSHIDABAD THERE HAD BEEN NO GOVERNMENTAL OR PRIVATE SCHOOLS. PUPILS COME FRO M NEARBY VILLAGES AND WALK UP TO FOUR KILOMETERS IN ORDER TO ATTEND THEIR LESSONS . IT APPEARS THAT THE SCHOOL RECOGNIZED BY THE LOCAL AUTHORITIES. 3. THE SOCIETY MADE AN APPLICATION FOR REGISTRATIO N U/S12AA OF THE INCOME TAX ACT, 1961 (ACT) BEFORE THE LD. COMMISSIONER OF INCO ME TAX (EXEMPTIONS), KOLKATA (CIT(E) FOR SHORT) ON 09.09.2014. THE SOCIE TY APPEARED BEFORE THE CIT(E) AND MADE SUBMISSION AND ALSO SUBMITTED ALL DOCUMENT S TO SUPPORT ITS APPLICATION. 4. THE CIT(E) HOWEVER REJECTED THE APPLICATION VID E HIS ORDER DATED 31.03.2015 FOR THE REASON THAT THE VERIFICATION OF THE ACTIVIT Y OF THE SOCIETY COULD NOT BE CARRIED OUT. IT IS THE PLEA OF THE ASSESSEE BEFORE US THAT ALL NECESSARY DOCUMENTS AND EVIDENCE WERE PRODUCED BEFORE THE CIT(E) AND THEREF ORE THE REJECTION OF THE APPLICATION WAS NOT JUSTIFIED. THE ASSESSEE BEING AGGRIEVED BY THE REJECTION OF THE REGISTRATION U/S.12AA OF THE ACT HAS PREFERRED THIS APPEAL. 5. AT THE TIME OF HEARING BEFORE US, LD. COUNSEL FO R THE ASSESEE FILED A PAPER BOOK CONTAINING ALL THE DOCUMENTS THAT WERE CALLED FOR BY THE CIT (E) IN THE ITA NOS.595&596/KOL/2015-ANANDA SIKSHA NIKETAN 3 PROCEEDINGS U/S12AA OF THE ACT. THE LIMITED REQUEST OF THE LD. COUNSEL FOR THE ASESSEE WAS TO SET ASIDE THE ORDER OF THE CIT AND R EMAND TO THE CIT (EXEMPTION) FOR A FRESH CONSIDERATION OF THE ASSESSEES APPLICA TION FOR GRANT OF REGISTRATION AFTER TAKING INTO CONSIDERATION, THE DOCUMENTS FILED BEFO RE THE TRIBUNAL AND ALSO DOCUMENTS AS MAY BE CALLED FOR OR REQUIRED BY THE C IT (EXEMPTION). 6. THE REQUEST OF THE LD. COUNSEL FOR THE ASSESSEE IS ACCEPTED. IN THIS REGARD IT IS NOTICED THAT THE ASSESSEE DID NOT HAVE ADEQUATE OPP ORTUNITY OF BEING HEARD BEFORE THE CIT (EXEMPTION), AS THERE WAS ONLY ONE HEARING BEFORE THE CIT(E). WE ACCORDINGLY SET ASIDE THE ORDER OF CIT (EXEMPTION) AND REMAND THE ISSUE WITH REGARD TO GRANT OF REGISTRATION U/S.12AA OF THE ACT TO THE FILE OF THE CIT (EXEMPTION) FOR FRESH CONSIDERATION AFTER AFFORDING THE OPPORTUNITY OF BEING HEARD. 7. AS FAR AS ITA NO.596/KOL/2015 IS CONCERNED THE GRANT OF RECOGNITION U/S.80G (5) WAS DENIED BECAUSE OF ABSENCE OF REGIST RATION U/S12AA OF THE ACT. SINCE THE QUESTION OF REGISTRATION U/S12AA OF THE A CT IS BEING REMANDED TO THE CIT (EXEMPTION), THE IMPUGNED ORDER OF THE CIT (EXEMPTI ON) IS ALSO SET ASIDE AND THE QUESTION OF GRANT OF APPROVAL U/S.80G (5) OF THE AC T IS SET ASIDE TO THE CIT (EXEMPTION) FOR FRESH CONSIDERATION. 8. IN THE RESULT, BOTH THE APPEALS TREATED AS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19.10.2016 SD/- SD/- (M. BALAGANESH) (N. V. VASUDEVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19/10/2016 S. SINHA(PS) ITA NOS.595&596/KOL/2015-ANANDA SIKSHA NIKETAN 4 COPY OF THE ORDER FORWARDED TO: 1. ANAND SIKSHA NIKETAN, KOLKATA 700 001 2 C.I.T.(EXEMPTION), KOLKATA 3. THE CIT-I, 4. THE CIT(A)-I, 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, ASST. REGISTRAR , ITAT, KOLKATA BENCHES