THE H N AND H H DADY PUBLIC CHARITABLE TRUST, MUMBAI V. CIT (EXEMPTION), MUMBAI

ITA 6712/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1327 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Assessment Year: 2019-2020
• Appeal Filed On: 30-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR JAISWALLD
• Keywords: Charitable institution; Non compliance
• Section: 80G

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJIT SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.6712/MUM/2019 ( / ASSESSMENT YEAR: 2019-20) THE H.N. AND H.H. DADY PUBLIC CHARITABLE TRUST RAMPART HOUSE, 3 RD FLOOR RAMPART PREMISES CHS LTD. RAMPART ROAD, MUMBAI-400 001. / VS. C IT (EXEMPTIONS) 617, PIRAMAL CHAMBERS LALBAUG, PAREL MUMBAI-400 012 '# ./ ./PAN/GIR NO. AABTH-5133-J ( !#% /APPELLANT ) : ( &'#% / RESPONDENT ) ASSESSEE BY : SHRI KETAN VED-LD. AR REVENUE BY : SHRI VIJAY KUMAR JAISWAL-LD. DR / DATE OF HEARING : 05/07/2021 / DATE OF PRONOUNCEMENT : 05/07/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY REJ ECTION OF APPROVAL APPLICATION U/S 80G(5)(VI) BY LEARNED COMMISSIONERS OF INCOME TAX (EXEMPTIONS) VIDE ORDER DATED 19/09/2019. 2. WE HAVE CAREFULLY HEARD RIVAL ARGUMENTS. THE LD. AR PLEADED THAT ASSESSEES SUBMISSIONS HAVE NOT BEEN CONSIDERED WHI LE REJECTING THE APPLICATION. THE LD. DR, ON THE OTHER HAND, SUBMITT ED THAT THE MATTER 2 MAY BE SENT BACK FOR RECONSIDERATION IN THE LIGHT O F THESE SUBMISSIONS. OUR ADJUDICATION WOULD BE AS GIVEN IN SUCCEEDING PA RAGRAPHS. 3. THE MATERIAL FACTS ARE THAT THE ASSESSEE TRUST A PPLIED FOR GRANT OF APPROVAL U/S 80G IN PRESCRIBED FORM 10G ON 25/04/20 17. VIDE LETTER DATED 27/04/2017, LD. CIT(E) CALLED FOR CERTAIN DET AILS / DOCUMENTS AND REQUIRED THE ASSESSEE TO ATTEND PROCEEDINGS ON 19/0 5/2017. HOWEVER, NONE APPEARED FOR ASSESSEE AND NO DETAILS WERE FILE D. SIMILAR WAS THE POSITION DURING HEARING ON 14/05/2018. THE LD. CIT( E), AFTER CONSIDERING ASSESSEES APPLICATION, OPINED THAT THERE WAS NOT E NOUGH MATERIAL ON RECORD TO ARRIVE AT SATISFACTION ABOUT THE FULFILLM ENT OF THE PRESCRIBED CONDITIONS. THEREFORE, IN VIEW OF NON-COMPLIANCE ON THE PART OF ASSESSEE, THE APPLICATION WAS REJECTED. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. UPON PERUSAL OF DOCUMENTS ON RECORDS, IT COULD B E SEEN THAT THE ASSESSEE HAS SUBMITTED PARTIAL RESPONSE VIDE REPLY DATED 18/05/2017. ALONG WITH THE REPLY, THE ASSESSEE HAS ENCLOSED CER TAIN DOCUMENTS VIZ. TRUST DEED, REGISTRATION CERTIFICATE ISSUED BY CHAR ITY COMMISSIONER AS WELL AS COPIES OF PROVISIONAL FINANCIAL STATEMENTS. IN SUBSEQUENT REPLY DATED 19/06/2017. THE ASSESSEE HAS FILED SOME MORE DETAILS / DOCUMENTS. IT APPEARS THAT ALL THESE DOCUMENTS HAVE BEEN REMAINED TO BE CONSIDERED WHILE PASSING THE ORDER. THEREFORE, K EEPING IN VIEW THE SUBMISSIONS MADE BEFORE US, WE RESTORE THE ISSUE OF APPROVAL BACK TO THE FILE OF LD. CIT(E) FOR FRESH ADJUDICATION AFTER AFFORDING OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE, IN TURN, IS DIRECTED TO SUBSTANTIATE THE APPLICATION WITH REQUISITE DETAILS / DOCUMENTARY EVIDENCES AS CALLED-FOR BY THE AUTHORITIES. KEEPING IN VIEW THE FACT THAT THE APPLICATION WAS MADE IN THE YEAR 2017, LD. CIT( E) IS DIRECTED TO 3 DISPOSE-OFF THE APPLICATION PREFERABLY WITHIN A PER IOD OF 6 MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER. 5. THE LD. AR HAS ALSO RAISED A PLEA THAT THE ORDER HAS BEEN PASSED BEYOND THE TIME LIMIT STIPULATED IN RULE 11AA OF TH E INCOME TAX RULES, 1962 AND THEREFORE, NON COMPLIANCE OF THE SAME SHOU LD CULMINATE INTO AUTOMATIC APPROVAL. WE ARE NOT CONVINCE WITH THE SA ME SINCE IT IS QUITE APPARENT THAT THERE WAS NON-COMPLIANCE ON THE PART OF THE ASSESSEE AND ONLY PARTIAL DETAILS WERE SUBMITTED IN RESPONSE TO LETTER DATED 27/04/2017. 6. THE APPEAL STAND PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 05 TH JULY, 2021. SD/- SD/- (AMARJIT SINGH) (MA NOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 05/07/2021 SR.PS, JAISY VARGHESE ! / COPY OF THE ORDER FORWARDED TO : 1. !#% / THE APPELLANT 2. &'#% / THE RESPONDENT 3. - ( ! ) / THE CIT(A) 4. - / CIT CONCERNED 5. ./& 0 , ! 0 , / DR, ITAT, MUMBAI 6. /123 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.