M/s. TSE Foundation, Gurgaon V. CIT(E), Chandigarh

ITA 6000/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4710 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 04-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAVEEN CHANDRA
• Keywords: Opportunity of being heard
• Section: 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C : NEW DELHI) BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.5999/DEL./2015 ITA NO.6000/DEL./2015 M/S. TSE FOUNDATION, VS. CIT (EXEMPTIONS), P 81, SOUTH CITY 1, CHANDIGARH. GURGAON 122 001. (PAN : AACTT3730C) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI NAVEEN CHANDRA, CIT DR DATE OF HEARING : 31.08.2017 DATE OF ORDER : 31.08.2017 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : SINCE COMMON QUESTIONS OF FACTS AND LAW HAVE BEEN R AISED IN THE AFORESAID APPEALS FILED BY THE ASSESSEE TRUS T, THE SAME ARE BEING DISPOSED OFF BY WAY OF CONSOLIDATED ORDER TO AVOID REPETITION OF DISCUSSION. 2. APPELLANT, M/S. TSE FOUNDATION (HEREINAFTER REFE RRED TO AS THE ASSESSEE TRUST), BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 31.08.2015 PASSED BY THE ITA NO.5999 & 6000/DEL./2015 2 COMMISSIONER OF INCOME-TAX (EXEMPTIONS), CHANDIGARH ON THE GROUNDS INTER ALIA THAT :- ITA NO.5999/DEL/2015 THAT THE LEARNED COMMISSIONER (EXEMPTIONS) HAS ERRED IN LAW AS WELL AS IN FACTS BY DENYING THE APPROVAL U/S 80G TO THE APPELLANT TRUST. ITA NO.6000/DEL/2015 THAT THE LEARNED COMMISSIONER (EXEMPTIONS) HAS ERRED IN LAW AS WELL AS IN FACTS BY DENYING THE REGISTRATION U/S 12AA TO THE APPELLANT TRUST. 3. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : LD. CIT DENIED THE APPROV AL UNDER SECTION 80G OF THE INCOME-TAX ACT, 1961 (FOR SHORT THE ACT) TO THE ASSESSEE TRUST ON THE GROUNDS INTER ALIA THAT FROM THE PERUSAL OF PROFIT & LOSS ACCOUNT FOR THE YEAR ENDING 31.03.201 5 HAS COME ON RECORD THAT AS AGAINST GROSS RECEIPT OF RS.11,86,16 9/-, THE ASSESSEE TRUST HAS INCURRED A SUM OF RS.9,01,354/- I.E. 76% ON ACCOUNT OF SALARY ONLY WHICH HAS NO NEXUS WITH THE AIMS AND OB JECTS OF THE ASSESSEE TRUST; THAT OTHER EXPENDITURE INCURRED BY THE ASSESSEE HAS ALSO GOT NOTHING TO DO WITH THE AIMS AND OBJECTS OF THE ASSESSEE TRUST AND THEREBY PROCEEDED U/S 80G BY DENYING THE APPROVAL. ITA NO.5999 & 6000/DEL./2015 3 4. FEELING AGGRIEVED, THE ASSESSEE TRUST HAVE COME UP BEFORE THE TRIBUNAL BY WAY OF CHALLENGING THE IMPUGNED ORD ER PASSED BY LD. CIT. 5. ASSESSEE HAS NOT PREFERRED TO PUT IN APPEARANCE DESPITE ISSUANCE OF THE NOTICE AND CONSEQUENTLY, WE PROCEED ED TO DECIDE THE PRESENT APPEAL WITH THE ASSISTANCE OF THE LD. D R AS WELL AS ON THE BASIS OF DOCUMENTS AVAILABLE ON THE FILE. 6. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E FOR THE REVENUE TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 7. FROM THE BARE PERUSAL OF THE IMPUGNED ORDER, IT IS APPARENTLY CLEAR THAT PURSUANT TO THE NOTICE ISSUED BY LD. CIT DATED 31.08.2015, ASSESSEE TRUST FILED THE DETAILS. HOWEV ER, THEREAFTER LD. CIT WITHOUT ISSUING ANY SHOW-CAUSE NOTICE TO THE AS SESSEE TRUST, THAT THE EXPENDITURE SHOWN IN THE PROFIT & LOSS AC COUNT HAS NOTHING TO DO WITH THE AIMS AND OBJECTS OF THE TRUS T BUT PROCEEDED TO DENY THE APPROVAL U/S 80G WITHOUT PROVIDING ADEQ UATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. FURTHE RMORE, LD. CIT ALSO LOST SIGHT OF THE FACT THAT WHEN COMPLETE INFR ASTRUCTURE IS THERE WITH THE ASSESSEE TRUST, WHICH IS THOUGH NOT EXPLAI NED OR DENIED IN THE ORDER, MAJOR PORTION OF THE GROSS RECEIPT IS RE QUIRED TO BE ITA NO.5999 & 6000/DEL./2015 4 EXPENDED ON SALARY COMPONENT, PRINTING & STATIONERY AND ON ACCOUNT OF TRAVELLING EXPENSES. SO, IN VIEW OF THE MATTER, WE ARE OF THE CONSIDERED VIEW THAT ADEQUATE OPPORTUNITY OF BE ING HEARD IS REQUIRED TO BE PROVIDED TO THE ASSESSEE TRUST BY LD . CIT (EXEMPTIONS) BY ISSUING SPECIFIC SHOW-CAUSE NOTICE AND TO DECIDE THE MATTER AFRESH. SO, THE IMPUGNED ORDER IS HEREB Y SET ASIDE AND FILE IS RESTORED TO THE LD. CIT (EXEMPTIONS) FOR DE NOVO DECISION. 8. RESULTANTLY, BOTH THE APPEALS FILED BY THE ASSES SEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 31 ST DAY OF AUGUST, 2017. SD/- SD/- (B.P. JAIN) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 31 ST DAY OF AUGUST, 2017 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(EXEMPTIONS), CHANDIGARH. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.