Ayyappa Swami Seva Sangh, Pune V. Commissioner of Income-tax, (Exemption), Pune

ITA 70/PUN/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4028 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-10-2021
• Assessment Year: misc
• Appeal Filed On: 16-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDRAKAR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 6; 12; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO S . 70 & 71 /PUN/20 19 SHRI AYYAPPA SWAMI SEVA SANGH S NO.66, SACHAI MATA NAGAR, KATRAJ, PUNE - 411 046 PAN : AAGTS4011H ....... / APPELLANT / V/S. THE COMMISSIONER OF INCOME TAX (EXEMPTION) PUNE. / RESPONDENT A SSESSEE BY : SHRI KISHOR B PHADKE REVENUE BY : SHRI J.P CHANDRAKAR / DATE OF HEARING : 07 . 10 .2021 / DATE OF PRONOUNCEMENT : 07 . 10 .2021 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THESE TWO APPEALS PREFERRED BY THE ASSESSEE EMANATES FROM THE DIFFERENT ORDERS OF THE LD. CIT(EXEMPTIONS), P UNE DATED 15.09.2017 AND 27.12.2018 PASSED U/S.12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 ( HEREINAFTER REFERRED TO AS THE ACT ) AS PER THE FOLLOWING GROUNDS OF APPEAL ON RECORD: 1. THE LEARNED CIT - E XEMPTIONS ERRED IN LAW AND ON FACTS IN REJECTING THE APPELLANT S APPLICATION MADE U/S.12A OF THE IT ACT, 1961. 2. THE LEARNED CIT - E XEMPTIONS ERRED IN LAW AND ON FACTS IN NOT GRATING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE APPELLANT AND THEREBY NOT FOLL OWING PRINCIPLES OF NATURAL JUSTICE. 3. T HE LEARNED CIT E XEMPTIONS ERRED IN LAW AND ON FACTS IN REJECTING THE APPELLANT S APPLICATION FOR REGISTRATION U/S.12 A OF THE IT A CT, 1961 2 ITA NO S . 70 & 71 /PUN/20 19 SHRI A YYAPPA S WAMI S EVA S ANGH ALLEGING THAT THE APPELLANT HAS NOT SUBMITTED THE ORIGINAL BPT REGISTRATION AND TRUST DEED FOR VERIFICATION. T HE LEARNED CIT - E XEMPTIONS FAILED TO APPRECIATE THAT THE SAID ORIGINAL DOCUMENTS WERE ALREADY PRODUCED FOR VERIFICATION. 4. T HE LEARNED CIT - E XEMPTIONS ERRED IN LAW AND ON FACTS IN RE JECTING THE APPELLANT S APPLICATION FOR REGISTRATION U/S.12 A OF THE IT A CT, 1961 ALLEGING THAT THE APPELLANT HAS NOT SUBMITTED PROOFS OF THE CHARITABLE ACTIVITIES. T HE LEARNED CI T - E XEMPTIONS OUGHT TO HAVE APPRECIATED THAT THE SAID DETAILS ARE ALREADY SUBMITTED ON RECORD. 5. A PPELLANT CRAVES LEAVE TO ADD/MODIFY/AMEND/DELETE ALL/A N Y OF THE GROUNDS OF APPEAL. F IRST , WE WOULD TAKE UP APPEAL IN ITA N O.70/ PUN /2019 FOR ADJUDICATION. ITA N O.70/ PUN /2019 2. T HE BRIEF FACTS IN THIS CASE ARE THAT THE ASSESSEE HAD APPLIED FOR REGISTRATION U /S.12 A A OF THE A CT IN THE REQUISITE F ORM 10 A OF THE A CT DATED 29 TH M ARCH, 2017 FILED ON 30 TH M ARCH, 2017 W ITH NECESSARY DETAILS/PARTICULARS ALONG WITH FORWARDING LETTER. T HEN EVENTUALLY A LETTER OF ENQUIRY WAS ISSUED FROM THE O FFICE OF THE CIT (E XEMPTIONS ) . I N RESPONSE TO THIS NOTICE, THE ASSESSEE DULY COMPLIED WITH AND MADE VARIOUS SUBMISSIONS WHICH ARE ON RECORD. 3. T HAT AS EVIDENT FROM THE ORDER OF THE L D. CIT(E XEMPTIONS ) DATED 15.09.2017 , HE WAS OF THE OPINION THAT APPLICAT ION OF THE ASSESSEE TRUST COULD NOT BE PROCESSED AS ORIGINAL BPT REGISTRATION AND TRUST DEED HAVE NOT BEEN PRODUCED. N O VERIFIABLE DETAILS/ PROOF HAVE BEEN FURNISHED BY THE ASSESSEE IN RESPECT OF THE ACTIVITIES CARRIED OUT BY THE APPLICANT/ASSESS EE. T HEREAFTER, THE L D. CIT(E XEMPTIONS ) HE LD THAT SINCE CHARITABLE NATURE OF OBJECTS AS WELL AS GENUINENESS OF TH E ACTIVITIES PERFORMED BY THE ASSESSE TRUST COULD NO T BE ASCERTAINED BECAUSE OF NON FILING OF DETAILS, THEREFORE, THE L D. 3 ITA NO S . 70 & 71 /PUN/20 19 SHRI A YYAPPA S WAMI S EVA S ANGH CIT(E XEMPTIONS ) REJECTED THE APPLICATION FOR GRANT OF REGIS TRATION U/S.12 AA OF THE A CT IN RESPECT OF THE ASSESSEE TRUST. 4. B EFORE US, THE L D. C OUNSEL FOR THE ASSESSEE SUBMITTED THAT THEY HAD IN FACT SUBMITTED ALL THE REQUISITE DETA ILS BEFORE THE L D. CIT(E XEMPTIONS ) O FFICE IN RESPECT OF THE NOTICE SENT TO THEM AND THEY WERE REALLY SURPRISED WITH THE FINDINGS OF THE L D. CIT(E XEMPTIONS ) THAT NO DETAILS WERE FILED BEFOR E HIM AND THUS, REJECTI NG THE GRANT OF REGISTRATION U/S.12 AA OF THE A CT. I N THIS REGARD, THE L D. C OUNSEL FOR THE ASSESSEE HAD F ILED RECTIFICATION PETITION U/S.154 OF THE A CT BEFORE THE C OMMISSIONER OF I NCOME T AX SUBMITTING THAT THERE IS MISTAK E APPARENT FROM RECORD CREPT IN THE ORDER OF L D. CIT(E XEMPTIONS ) SINCE ALL THE DETAILS AS ASKED BY THE O FFICE OF THE L D. CIT (E XEMPTIONS ) WERE FURNISHED, STILL, THE FINDINGS OF THE L D. CIT(E XEMPTIONS ) THAT NO DETAILS WERE GIVEN AND THUS, CORRESPONDING REJECTION OF GRANTING REGISTRATION U/S.12 AA OF THE A CT. T HE RECTIFICATION PETITION U/S.154 OF THE A CT HAS BEEN PENDING BEFORE THE D EPARTMENT SINCE 2018. T HE ASSESSEE WAS WAITING THAT IF THIS RECTIFICATION PETITION IS ADDRESSED TO, IN SUCH SCENARIO TH ERE W OULD NOT BE ANY NEED TO FILE APPEAL BEFORE THE T RIBUNAL AND BECAUSE OF THIS EXTRAORDINARY DELAY IN DISPOSING THE SAID RECTIFICATION PETITION U/S.154 OF THE A CT WHICH IS IN FACT STILL PENDING WITH THE D EPARTMENT , ULTIMATELY WHEN THE ASSESSEE FILED APPEAL BEFORE THE T RIBUNAL, THERE AROSE A DELAY OF 405 DAYS. 5. B EFORE US, THE ASSESSEE HAS FILED AN AFFIDAVIT AND CONDONATION PETITION AND THEREIN ALL THE REASONS HAVE BEEN ENSHRINED . T HAT ON PERUSAL OF THESE DOCUMENTS, IT IS ABSOLUTELY CLEAR THAT DELAY CANNOT BE ATTRIBUTED TO DELIBERATE CONDUCT OR INTENTION OF THE ASSESSEE AND IT WAS PURELY CIRCUMSTANTIAL . T HE L D. DR FAIRLY CONCE DED THAT DELAY MAY BE CONDONED . I N VIEW OF THE SUBMISSIONS, WE CONDONE THE DELAY AND PROCEED TO HEAR THE MATTER ON MERITS. 4 ITA NO S . 70 & 71 /PUN/20 19 SHRI A YYAPPA S WAMI S EVA S ANGH 6. A S DISCUSSED ABOVE, THE L D. CIT(E XEMPTIONS ) IN HIS ORDER DATED 15.09.2017 HAS DISMISSED THE APPLICATION FILED BY THE ASSESSEE FOR GRANTING REGISTRATION U/S.12 AA OF THE A CT FOR WANT OF EVIDENCES/DETAILS. T HAT THE L D. CIT(E XEMPTIO NS ) WAS NOT ABLE TO GET HIMSELF SATISFIED WITH REGARD TO THE GENUINENESS OF THE ACTIVITIES OF THE TRUST AND THE OBJECT S OF THE TRUS T AS MANDATED U/S.12 AA OF THE A CT. H ENCE, HE REJECTED THE APPLICATION FOR GRANT OF REGISTRATION U/S.12 AA OF THE A CT . 7. A T THE TIME OF HEARING, THE L D. C OUNSEL FOR THE ASSESSEE SUBMITTED THAT THEY CAN GO BACK TO THE L D. CIT(E XEMPTIONS ) AND FURNISH ALL THE REQUISITE DETAILS/DOCUMENTS ONCE AGAI N WHICH HAVE THOUGH ALREADY BEEN FILED BEFORE HIM BY THE ASSESSEE , IF ANOTHER OPPORTUNITY WAS GIVEN TO THEM A ND ALSO THEY WILL CONVINCE THE D EPARTMENT ABOUT THE GENUINENESS OF THE ACTIVITIES AND CHARITABLE NATURE OF TH E OBJECTS OF THE ASSESSEE TRUST IN OR DER TO REPRESENT THEIR CASE ON MERITS AS REGARDS VALIDITY OF THEIR APPLICATION FOR REGISTRATION U/S.12 AA OF THE A CT. 8. T HE L D. DR FAIRL Y CONCEDED TO THE PRAYER MADE BY THE L D. C OUNSEL FOR THE ASSESSEE. 9. H AVI NG HEARD THE PARTIES HEREIN, ANALYZING THE FACTS AND CIRCUMSTANCES IN THIS CASE, WE FIND THAT ON ONE HAND, THE L D. CIT(E XEMPTIONS ) IN HIS ORDER HAS GIVEN CATEGORICAL FINDINGS THAT THE DETAILS/EVIDENCES WHICH WERE ESSENTIAL FOR GRANTING REGISTRATION U/S.12 AA OF THE A CT HAS NOT BEEN FURNISHED BY THE ASSESSE TRUST WHILE ON THE OTHER HAND, THE L D. C O UNSEL FOR THE ASSESSEE VEHEMENTLY ARGUED THAT THEY HAVE IN FACT FURNISHED ALL THE DETAILS/EVIDENCES REQUIR ED FOR THE PURPOSE OF GRANTING REGISTRATION U/S.12 AA OF THE A CT 5 ITA NO S . 70 & 71 /PUN/20 19 SHRI A YYAPPA S WAMI S EVA S ANGH DEMONSTRATING THE SAME THROUGH THE P APER BOOK AT P AGE 34 ONWARDS AND SPECIFICALLY P AGE 36 WHEREIN DETAILS OF THE EVIDENCES WERE SUBMITTED BEFORE THE D EPARTMENT FOR THE PURPOSE OF REGISTRATION U/S.12 AA OF THE A CT. 10. T HAT ALSO IN TH ESE PECULIAR CIRCUMSTANCES, THE L D. C OUNSEL FOR THE ASSESSEE HAS FAIRLY SUBMITTED THAT THEY WILL ONCE AGAIN GO BACK TO THE D EPARTMENT I.E. BEFORE THE L D. CIT(E XEMPTIONS ) AND EXPLAIN THE CASE ON MERITS VIS - - VIS THE DOCUMENTS ALREADY SUBMITTED AND WHATEVER DOCUMENTS /DETAILS, L D. CIT(E XEMPTIONS ) WOULD REQUIRE, HE WOULD FURNISH THOSE REQUISITE DETAILS ALSO. W E ARE OF THE CONSIDERED VIEW, FOR THE ENDS OF JUSTICE, THE MATTER SHOULD BE DECIDED ON MERITS BY THE L D. CIT(E XEMPTIONS ) SINCE THE VERY REQUISITE OF S ECTION 12 AA OF THE A CT ENSHRIN ES THAT THE L D. CIT(E XEMPTIONS ) SHOULD SA TISFY HIMSELF WITH REGARD TO O BJECTS OF THE TRUST AS WELL AS GENUINENESS OF ACTIVITIES OF THE ASSESSEE TRUST AND FOR THIS PURPOS E, HE WOULD ANALYZE THE DOCUMENTS SUBMITTED BEFORE HIM AND GIVE PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE AND THUS, DECIDE THE CASE ON MERITS AS PER LAW. 11. I N THE RESULT, APPEAL OF THE ASSESSEE IN ITA N O.70/ PUN /2019 IS ALLOWED FOR STATISTICAL PURPOSES. ITA N O.71/ PUN /2019 12. T HAT WITH REGARD TO THE SECOND APPEAL, IT WAS SUBMITTED BY THE L D. C OUNSEL FOR THE ASSESSEE THAT WHILE THE RECTIFICATION PETITION U/S.154 OF THE A CT WAS PENDING BEFORE THE D EPARTMENT WH ICH STILL IS , THEY HAD FILED ANOTHER APPLICATION FOR GRANTING REGISTRATION U/S.12 AA OF THE A CT IN RESPECT OF THE ASSESSEE TRUST AND THE PRESENT APPEAL IS IN CONNECTION WITH REGARD TO THE SECOND A PPLICATION. W E ARE OF THE CONSIDERED VIEW, WHEN WE HAVE RESTORED THE FIRST APPEAL IN ITA N O.70/ PUN /2019 TO THE FILE OF T HE L D. CIT(E XEMPTIONS ) AND 6 ITA NO S . 70 & 71 /PUN/20 19 SHRI A YYAPPA S WAMI S EVA S ANGH THE SECOND APPEAL PREFERRED BY THE ASSESSEE IS ALSO WITH REGARD TO THE SAME ASSESSEE TRUST IN RESPECT OF THE SECOND APPLICATION MADE BY THE ASSESSEE, IN SUCH SCENARIO , THIS SECOND APPEAL WOULD BECOME INFRUCTUOUS. W E ARE OF THE CONSIDERED VIEW THAT S INCE THE R EVENUE HAS ALREADY BEEN DIRECTED TO DECIDE THE ISSUE RAISED IN THE FIRST APPEAL ON MERITS WHILE COMPLYING WITH TH E PRINCIPLES OF NATU RAL JUSTICE, THE SECOND APPEAL BECOMES INFRUCTUOUS IN NATURE AND HENCE , DISMISS ED . 13. I N THE RESULT, APPEAL OF THE ASSESSEE IN ITA N O.71/ PUN /2019 IS DISMISSED AS INFRUCTUOUS. 14. I N THE COMBINED RESULT, APPEAL OF THE ASSESSEE IN ITA N O.70 / PUN /2019 IS ALLOWED FOR STATISTICAL PURPOSES AND APPEAL OF THE ASSESSEE IN ITA N O.71/ PUN /201 9 IS DISMISSED. ORDER PRO NOUNCED ON 07 TH DAY OF OCTOBER , 20 2 1 . S D/ - S D/ - R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 07 TH O CTOBER , 202 1 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. T HE CIT(E XEMPTIONS ) , P UNE. 4 . , , , / DR, ITAT, A BENCH, PUNE. 5 . / GUARD FILE. / BY ORDER, // T RUE C O PY // / PRIVATE SECRETARY , / ITAT, PUNE . 7 ITA NO S . 70 & 71 /PUN/20 19 SHRI A YYAPPA S WAMI S EVA S ANGH DATE 1 DRAFT DICTATED ON 07 . 10 .2021 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 07 . 10 .202 1 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER