Kuriakose mor Koorilose Memorial charitable trust, Thiruvalla V. CIT, Kottayam

ITA 615/COCH/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1028 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 08-01-2013
• Assessment Year: misc
• Appeal Filed On: 13-12-2011
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA; M ANIL KUMAR
• Assessee Lawyers: VENKITACHALAM
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A NO. 615/COCH/2011 ASSESSMENT YEAR : - KURIAKOSE MOR KOORILOSE MEMORIAL CHARITABLE TRUST, MEPRAL, THIRUVALLA. [PAN :AABTK 6686M] VS. THE COMMISSIONER OF INCOME-TAX, KOTTAYAM. (ASSESSEE-APPELLANT) (REVENUE- RESPONDENT) ASSESSEE BY SHRI M.S. VENKITACHALAM, FCA REVENUE BY SMT. S. VIJAYAPRABHA & SHRI M. ANIL KUMAR, CIT(DR) DATE OF HEARING 08/01/2013 DATE OF PRONOUNCEMENT 11/01/2013 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 25-10-2011 PASSED BY LD CIT, KOTTAYAM REJECTING THE APPLICATIO N FILED BY THE ASSESSEE SEEKING REGISTRATION U/S 12AA OF THE ACT. 2. THE FACTS RELATING THERETO ARE STATED IN BRIEF. THE ASSESSEE TRUST WAS CREATED ON 31.01.1996 AND IT FILED AN APPLICATION BEFORE LD CI T ON 08.04.2011 SEEKING REGISTRATION U/S 12AA OF THE ACT. HOWEVER, THE LD CIT REJECTED THE SAID APPLICATION WITH THE FOLLOWING OBSERVATION:- 3. IN THE REPORT FURNISHED BY INCOME TAX OFFICER, WARD 1, THIRUVALLA DATED 26-09-2011 IT IS STATED THAT THE CONDITIONS NECESSA RY FOR GETTING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 ARE NOT FULFILLED IN THIS CASE, FOR THE DETAILED REASONS MENTIONED THEREIN. ACCORDINGL Y, THE JOINT COMMISSIONER OF I.T.A. NO.615 /COCH/2011 2 INCOME TAX, THIRUVALLA RANGE ALSO, IN HIS LETTER DA TED 03-10-2011 HAS NOT RECOMMENDED FOR GRANT OF REGISTRATION U/S 12AA. AGGRIEVED BY THE ORDER OF LD CIT, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND CARE FULLY PERUSED THE RECORD. FROM THE OBSERVATIONS MADE BY LD CIT, WHICH ARE EXTRACTED AB OVE, WE NOTICE THAT THE LD CIT HAS SIMPLY ENDORSED THE VIEWS EXPRESSED BY THE TAX AUTH ORITIES BELOW HIM. A CAREFUL PERUSAL OF THE PROVISIONS OF SEC. 12AA OF THE ACT W OULD SHOW THAT THE LD CIT HAS TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVI TIES OF THE TRUST AND ALSO ABOUT THE OBJECTS OF THE TRUST BEFORE GRANTING OR REFUSING RE GISTRATION. IT IS FURTHER PROVIDED THAT THE ORDER OF REJECTION SHALL NOT BE PASSED UNLESS T HE APPLICANT HAS BEEN GIVEN A REASONABLE OPPORTUNITY OF BEING HEARD. 4. IN THE INSTANT ORDER, THE SATISFACTION OR OT HERWISE OF THE LD CIT HAS NOT BEEN BROUGHT OUT IN THE ORDER. IN OUR VIEW, MERE ENDORS EMENT OF THE VIEWS OF THE TAX AUTHORITIES BELOW HIM WOULD SHOW ONLY LACK OF APPLI CATION OF MIND ON THE PART OF LD CIT. THERE SHOULD NOT BE ANY DISPUTE THAT THE ORDE R OF THE LD CIT, BEING A QUASI JUDICIAL ORDER, SHOULD SPEAK BY ITSELF. HOWEVER, W E NOTICE THAT THE ORDER PASSED BY LD CIT DOES NOT GIVE THE REASONS FOR REJECTING THE APP LICATION, THE REASONS AS TO WHY SHE WAS NOT SATISFIED WITH THE GENUINENESS OF THE ACTIV ITIES OF THE TRUST AND ALSO WHY SHE WAS NOT SATISFIED WITH THE OBJECTS OF THE TRUST. F URTHER, IT IS NOT CLEAR WHETHER THE LD CIT GAVE THE NECESSARY OPPORTUNITY OF BEING HEARD T O THE ASSESSEE, WHICH IS A MANDATORY CONDITION TO BE COMPLIED WITH BEFORE REJE CTING THE APPLICATION. 5. UNDER THESE CIRCUMSTANCES, WE ARE OF THE VIE W THAT THE ORDER PASSED BY LD CIT IS NOT IN ACCORDANCE WITH RELEVANT PROVISIONS OF SEC. 12AA OF THE ACT. ACCORDINGLY, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER TO HER FILE WITH THE DIRECTION TO RE- EXAMINE THE APPLICATION FILED BY THE ASSESSEE AND T AKE APPROPRIATE DECISION IN ACCORDANCE WITH THE LAW BY PASSING A SPEAKING ORDER . NEEDLESS TO MENTION, THE ASSESSEE SHOULD BE GIVEN REASONABLE OPPORTUNITY OF BEING HEARD. I.T.A. NO.615 /COCH/2011 3 6. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 11-01-2013 SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 11TH JANUARY, 2013 GJ COPY TO: 1. KURIAKOSE MOR KOORILOSE MEMORIAL CHARITABLE TRUS T, MEPRAL, THIRUVALLA. 2. THE COMMISSIONER OF INCOME-TAX, KOTTAYAM. 3. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 4.. GUARD FILE. BY ORDER (A SSISTANT REGISTRAR) I.T.A.T, COCHIN