M/s Public Education Society, Bangalore V. DIT(Exemptions), Bangalore

ITA 683/BANG/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2056 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-12-2009
• Assessment Year: misc
• Appeal Filed On: 06-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JASON P BOAZ
• Keywords: Condonation of delay
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.683/BANG/2009 ASSESSMENT YEAR : N.A. M/S. PUBLIC EDUCATION SOCIETY, # 45/37, GUBBANNA LAYOUT, 6 TH BLOCK, RAJAJINAGAR, BANGALORE. : APPELLANT VS. THE DIRECTOR OF INCOME-TAX (EXEMPTIONS), BANGALORE. : RESPONDENT APPELLANT BY : SHRI NARENDRA SHARMA RESPONDENT BY : SHRI JASON P. BOAZ O R D E R PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER THIS APPEAL IS BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LD. DIT(EXEMPTIONS), BANGALORE DATED 27.5.09. 2. THE FOLLOWING GROUNDS OF APPEAL ARE RAISED IN TH IS APPEAL: (1) THE ORDER OF THE LD. DIT(EXEMPTIONS) IN SO FAR AS IT IS AGAINST THE APPELLANT, IS OPPOSED TO LAW, EQUITY, A ND WEIGHT OF EVIDENCE, PROBABILITIES FACTS AND CIRCUMSTANCES OF THE CASE. (2) THE LD. DIT(EXEMPTIONS) IS NOT JUSTIFIED IN NO T CONSIDERING THE PRAYER FOR CONDONATION OF DELAY IN FILING AN APPLICATION FOR REGISTRATION U/S. 12A OF THE ACT IN FORM NO.10A UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APP ELLANTS CASE. (3) THE LD. DIT(EXEMPTIONS) FAILED TO APPRECIATE TH AT THE DELAY IN FILING AN APPLICATION FOR REGISTRATION IN FORM NO.10A WAS DUE TO REASONABLE AND SUFFICIENT CAUSE AND THEREFOR E, HE OUGHT TO ITA NO.683/BANG/09 PAGE 2 OF 4 HAVE CONDONED THE DELAY AND GRANTED REGISTRATION TO THE APPELLANT SOCIETY WITH EFFECT FROM 01/04/2004 UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANTS CASE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E TRUST WAS ESTABLISHED ON 9.10.1969. AN APPLICATION FOR GRANT OF REGISTRATION U/S. 12A OF THE I.T. ACT WAS FILED ON 4.11.2008. THE LD. D IT(E) BY HIS ORDER DATED 27.5.09 GRANTED REGISTRATION U/S. 12A(A) OF THE ACT W.E.F. A.Y. 2009-10. 4. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE ASS ESSEE TRUST HAD FILED A LETTER DATED 27.05.09 TO THE DIT(E) [COPY PLACED O N RECORD AT PAGES 5 & 6 OF PAPERBOOK] SEEKING CONDONATION OF DELAY AND GRAN T OF REGISTRATION W.E.F. A.Y. 2005-06. THE RELEVANT PORTION OF THE LETTER I S EXTRACTED HEREBELOW: IT IS UNDER THE AFORESAID CIRCUMSTANCES THAT WE M ADE ANOTHER APPLICATION FOR GRANT OF REGISTRATION U/S. 12A OF THE ACT, FOR GRANT OF REGISTRATION WITH EFFECT FROM 1.4.2005 ITSELF. IT IS SUBMITTED THAT THE REASONS FOR DELAY IN FILING THE APPLICATION IS DUE TO THE FACT THAT WE WERE ENTITLED TO EXEMPTION U/S. 10(23C) OF THE ACT, UPTO THE ASSESSMENT YEAR 2004-05 AND IT IS ONLY DURING THE FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR 2005-06 THAT OUR RECEIPTS EXCEEDED ONE CRORE AND WE WERE NO LONG ER ENTITLED TO EXEMPTION U/S. 10(23C) OF THE ACT. IT IS SUBMITTED THAT WE ARE N (SIC) AN EDUCATIONAL INSTITUTION THAT EXISTS SOLELY FOR EDUCATION PURPOSES AND THE LAPSE IS (SIC) IN NOT FILING THE APPLICATI ON FOR REGISTRATION WITHIN THE TIME ALLOWED IS ONLY DUE TO IGNORANCE AND THEREFORE, IT IS PRAYED THAT THE DELAY IN FILING TH E APPLICATION BE CONDONED AND REGISTRATION BE GRANTED TO US ASSESSME NT YEAR 2005-06 ITSELF. IN VIEW OF ABOVE, WE REQUEST YOUR HONOUR TO KINDLY GRANT REGISTRATION WITH EFFECT FROM ASSESSMENT YEAR 2005- 06 AND OBLIGE. 5. THE LD. AR FURTHER SUBMITTED THAT THE LETTER DAT ED 27.5.09 WAS FILED BY THE TRUST BEFORE THE DIT(E) ON 29.5.2009 AS PER THE ACKNOWLEDGEMENT. HOWEVER, THE LD. DIT(E) HAD PASSED THE ORDER ON 27. 5.09 ITSELF GRANTING REGISTRATION U/S. 12A W.E.F. A.Y. 2009-10 WITHOUT T AKING CONSIDERATION OF THE ITA NO.683/BANG/09 PAGE 3 OF 4 ASSESSEES APPLICATION DATED 27.5.09 REQUESTING FOR CONDONATION OF DELAY AND GRANT OF REGISTRATION FROM A.Y. 2005-06. THE L D. AR THEREFORE PRAYED BEFORE US THAT ONE MORE OPPORTUNITY BE PROVIDED TO THE ASSESSEE TRUST BY REMITTING THE MATTER BACK TO LD. DIT(E) FOR CONSIDE RATION OF ITS APPLICATION DATED 27.5.09 SEEKING CONDONATION OF DELAY AND REGI STRATION W.E.F. A.Y. 2005-06.. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IT APPEARS THE LD. DIT(E) PASSED THE ORDER ON 27.5.09 WITHOUT CONSIDERING THE APPLICATION DATED 27.5.09 OF THE AS SESSEE TRUST. WE ARE OF THE VIEW THAT THE ASSESSEE DESERVES ONE MORE OPPORT UNITY BEFORE THE LD. DIT(E) TO ARGUE ITS CASE ON MERIT. WE THEREFORE RE MIT THE MATTER BACK TO THE FILE OF THE LD. DIT(E) TO CONSIDER THE MATTER A FRESH IN LIGHT OF THE TRUSTS APPLICATION DATED 27.5.09 AND DECIDE THE ISSUE IN A CCORDANCE WITH LAW. THE ASSESSEE IS DIRECTED TO COOPERATE WITH THE DEPA RTMENT AND PRODUCE ALL THE RELEVANT RECORDS PROMPTLY. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF DECEMBER, 2009. SD/- SD/- ( GEORGE GEORGE K. ) (A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 23 RD DECEMBER, 2009. DS/- ITA NO.683/BANG/09 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.