Dr. Duru Lilaram Charitable Trust, Kolkata V. DIT, Exemption, Kolkata, Kolkata

ITA 655/KOL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9259 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-03-2011
• Assessment Year: misc
• Appeal Filed On: 05-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P C NAYAK
• Assessee Lawyers: S JHAJHARIA
• Keywords: Charitable institution
• Section: 80G; 12A; 12

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH-A: KO LKATA ( ) . . , , . . , ! ! ! ! ,) [BEFORE HONBLE SHRI B.R. MITTAL, J.M. & HONBLE SH RI C.D. RAO, A.M] ' ' ' ' /I.T.A. NO. 655/KOL./2010 DR. DURU LILARAM CHARITABLE TRUST, -VS.- DIRECTOR OF INCOME TAX (EXEMPTION), KOLKATA (PAN : AAATD 5713 F) KOLKATA (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. JHAJHARIA, A.R. RESPONDENT BY : SHRI P.C. NAYAK, D.R. # # # # /O R D E R PER SHRI B. R. MITTAL, JUDICIAL MEMBER / . . , : THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORD ER OF LD. DIRECTOR OF INCOME-TAX (EXEMPTION), KOLKATA DATED 15.02.2010 DISPUTING THE REJECTION OF THE APPLICATION OF THE ASSESSEE FILED IN FORM NO. 10G FOR RENEWAL OF EXEMP TION UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT. 2. AT THE TIME OF HEARING, THE LD. AUTHORIZED REPRE SENTATIVE OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A REGISTERED TRUST UNDER SECTION 12 A OF THE INCOME TAX ACT. IT HAS BEEN GRANTED EXEMPTION UNDER SECTION 80G FROM TIME TO TIME AND R EFERRED PAGES 11 TO 17 OF THE PAPER BOOK TO SUBSTANTIATE THAT THE EXEMPTION HAS BEEN GRANTED FROM FINANCIAL YEAR 1991-92 TO FINANCIAL YEAR 2007-08 (ASSESSMENT YEAR 2008-09). HE SUBMITTE D THAT LASTLY THE EXEMPTION GRANTED TO THE ASSESSEE WAS FROM ASSESSMENT YEAR 2006-07 TO 2008-0 9 VIDE LETTER DATED 13.02.2006, COPY PLACED AT PAGE 17 OF THE PAPER BOOK. HE SUBMITTED T HAT THE ASSESSEE FILED APPLICATION IN FORM ITA NO.655/KOL.2010 2 NO. 10G TO SEEK EXEMPTION UNDER SECTION 80G FOR THE PERIOD 01.04.2008 TO 31.03.2013 AND REFERRED PAGES 18 TO 21 OF THE PAPER BOOK, WHICH IS A COPY OF THE LETTER AND APPLICATION FILED BY THE ASSESSEE. HE SUBMITTED THAT THE LD. DIT (EXEMPT ION) HAS REJECTED THE APPLICATION OF THE ASSESSEE WITHOUT GIVING A REASONED ORDER AND MERELY STATED THAT THE ASSESSEE IS NOT CARRYING ANY CHARITABLE ACTIVITIES IN THE PRECEDING TWO YEARS AN D ONLY THE INCOMES EARNED ARE ACCUMULATED. HE SUBMITTED THAT THERE IS NO CHANGE IN THE OBJECT AND ACTIVITIES OF THE ASSESSEE SINCE ITS INCEPTION. THE LD. DIT(EXEMPTION) HAS NOT GIVEN PRO PER OPPORTUNITY OF HEARING TO THE ASSESSEE TO ESTABLISH THAT THE ASSESSEE IS CARRYING ITS ACT IVITIES AS PER ITS OBJECT CLAUSE. HE SUBMITTED THAT AS PER ITS OBJECT CLAUSE OF TRUST DEED, THE ORDER O F LD. DIT (EXEMPTION) BE SET ASIDE AND THE EXEMPTION UNDER SECTION 80G BE GRANTED TO THE ASSES SEE-TRUST. 3. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESEN TATIVE RELIED ON THE ORDER OF THE LD. DIT(EXEMPTION). 4. WE, ON CONSIDERATION OF THE SUBMISSIONS OF THE L D. REPRESENTATIVES OF THE PARTIES AND THE ORDER OF THE LD. DIT(EXEMPTION), OBSERVE THAT THE L D. DIT(EXEMPTION) HAS NOT PASSED A SPEAKING ORDER WHILE REJECTING THE APPLICATION OF T HE ASSESSEE. IT IS A FACT THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION UNDER SECTION 12A OF THE INCOME TAX ACT AS PER CERTIFICATE PLACED AT PAGE 10 OF THE PAPER BOOK, WHICH IS A COPY OF THE L ETTER DATED 09.08.1991. WE ALSO OBSERVE THAT THE ASSESSEE HAS BEEN GRANTED EXEMPTION UNDER SECTI ON 80G OF THE INCOME TAX ACT FROM ASSESSMENT YEARS 1992-93 TO 2008-09 AS PER COPIES O F EXEMPTION CERTIFICATES PLACED AT PAGES 11 TO 17 OF THE PAPER BOOK. THE PRESENT APPLICATION HA S BEEN FILED BY THE ASSESSEE ON 31.08.2009 IN THE PRESCRIBED FORM 10G FOR RENEWAL OF EXEMPTION UN DER SECTION 80G FOR THE PERIOD 01.04.2008 TO 31.03.2013. WE FIND SUBSTANCE IN THE SUBMISSION OF THE LD. A.R. THAT THE ORDER PASSED BY THE LD. DIT(EXEMPTION) HAS ONLY STATED THAT FIELD OFFIC ERS HAVE NOT RECOMMENDED THE CASE OF THE ASSESSEE AND HAS ALSO STATED THAT NO CHARITABLE ACT IVITIES DONE BY THE ASSESSEE-TRUST IN THE PRECEDING TWO YEARS. WE ARE OF THE CONSIDERED VIEW THAT THE ORDER PASSED BY THE LD. DIT(EXEMPTION) HAS NOT GIVEN A REASONED ORDER WHILE REJECTING THE APPLICATION OF THE ASSESSEE FOR RENEWAL OF EXEMPTION UNDER SECTION 80G OF THE I NCOME TAX ACT. HENCE, WE SET ASIDE THE ORDER OF THE LD. DIT(EXEMPTION) BY RESTORING THE IS SUE TO HER FILE WITH A DIRECTION TO DECIDE THE APPLICATION OF THE ASSESSEE BY A SPEAKING ORDER AND AFTER GIVING DUE OPPORTUNITY OF HEARING TO ITA NO.655/KOL.2010 3 THE ASSESSEE AND ALSO CONSIDERING SUCH DOCUMENTS, A S MAY BE FILED BEFORE HER. HENCE, THE GROUND OF APPEAL TAKEN BY THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.03. 2011. SD/- SD/- [C. D. RAO ( . . )] [ B.R . MITTAL / . . ] ACCOUNTANT MEMBER/ ! ! ! ! JUDICIAL MEMBER/ ] DATED : 17 / 03/ 2011 COPY OF THE ORDER FORWARDED TO: 1. DR. DURU LILARAM CHARITABLE TRUST, C/O. M/S. SALARP URIA JAJODIA & CO., 7, C.R. AVENUE, KOLKATA-72. 2 DIT (EXEMPTION), KOLKATA, 10B, MIDDLETON ROW, 6 TH FLOOR, KOLKATA-71. 3. DIT(EXEMPTION)- ,KOLKATA 4. DIT- , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA (TRUE COPY) BY ORDER ASSISTANT REGISTRAR I.T.A.T., KOLKATA. LAHA, SR. P.S.