Smart Cites India Foundation, Bangalore V. Commissioner Of Income Tax (Exemptions), Bangalore

ITA 77/BANG/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1125 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 16-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R RAMAKRISHNAN
• Keywords: Opportunity of being heard; Set aside
• Section: 80G; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI A.K GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.77/BANG/2020 ASSESSMENT YEAR : 2019 20 SMART CITIES INDIA FOUNDATION, #381, 100 FT. ROAD, HAL 2 ND STAGE, INDIRANAGAR, BENGALURU-560 008. PAN AAWCS 8976 N VS. THE COMMISSIONER OF INCOME TAX (EXEMPTION), BENGALURU. ASSESSEE RESPONDENT ASSESSEE BY : SHRI R RAMAKRISHNAN, C.A RESPONDENT BY : MS. NEERA MALHOTRA, CIT DR DATE OF HEARING : 01-06-2020 DATE OF PRONOUNCEMENT : 01-06-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST O RDER DATED 25/11/19 UNDER SECTION 80G(5)(VI)12AA(1)(B)(I I) OF THE ACT, PASSED BY LD. CIT (E), BANGALORE. 2. LD.AR SUBMITTED THAT ASSESSEE FILED APPLICATION SE EKING REGISTRATION UNDER SECTION 12 AA ON 10/05/2019. HE SUBMITTED THAT REGISTRATION UNDER SECTION 12AA WAS GRANTED TO ASSESSEE ON PAGE 2 OF 4 ITA 77/BANG/2020 A. Y : 2019 20 25/11/2019. IN THE MEAN WHILE ASSESSEE ALSO FILED A PPLICATION FOR REGISTRATION UNDER SECTION 80 G ON 10/05/2019. 3. LD.AR SUBMITTED THAT LD.CIT(E) REJECTED APPLICATION FOR REGISTRATION U/S 80G(5)(VI) ON 25.11.2019 STATING T HAT; 2. THE TRUST REPLY SUBMITTED HAVE BEEN EXAMINED. THE TRUST THOUGH ESTABLISHED ON 02/02/2015, HAS NOT CARRIED O UT NOTICEABLE ACTIVITIES TO GRANT EXEMPTION UNDER SECTION 80G OF THE I.T.ACT. 4. IT HAS BEEN SUBMITTED THAT THE DATE ON WHICH REGIST RATION UNDER SECTION 12AA WAS GRANTED, ON THE SAME DATE AP PLICATION FOR RECOGNITION UNDER SECTION 80G HAS BEEN DENIED. HE SUBMITTED THAT LD.CIT(E) REJECTED THE APPLICATION WITHOUT VER IFYING DETAILS FILED BY ASSESSEE. LD.AR SUBMITTED THAT THERE IS NO THING BROUGHT ON RECORD BY LD.CIT(E) TO ESTABLISH VIOLATION OF SE CTION 80 G OF THE ACT, AND THAT LD.CIT (E) HIMSELF GRANTED ASSESSEE R EGISTRATION UNDER SECTION 12 AA OF THE ACT. IT WAS THUS SUBMITT ED BY HIM THAT THERE IS NO BASIS FOR REJECTING THE APPLICATIO N FOR RECOGNITION UNDER SECTION 80G. 5. AT THIS JUNCTURE, LD.CIT DR SUBMITTED THAT ISSUE MA Y BE SENT BACK TO LD.CIT(E) FOR RECONSIDERATION OF THE APPLIC ATION. 6. WE HAVE PERUSED ARGUMENTS ADVANCED BY BOTH SIDES. IN THE FACTS OF PRESENT CASE, ASSESSEE WAS HOLDING VALID REGISTRATION UNDER SECTION 12 AA OF THE ACT, AS ON DATE OF IMPUGNED ORDER, WHICH CONVERSELY MEANS THAT LD.CIT (E) WAS SATISFIED WITH OBJECTS OF ASSESSEE IN NOT DISPUTING THE REGISTRATION UNDER SECTION 12 AA. 6.1. WE ALSO NOTICE THAT, LD.CIT(E) HAS NOT EXAMINED THE APPLICATION OF ASSESSEE IN TERMS OF SECTION 80 G (5 ) OF THE ACT. CO- PAGE 3 OF 4 ITA 77/BANG/2020 A. Y : 2019 20 ORDINATE BENCH OF THIS TRIBUNAL IN CASE OF INDIC SC IENCE RESEARCH TRUST VS. CIT(E), IN ITA NO.1077/BANG/2018 FOR ASST . YEAR 2018- 19 BY ORDER DATED 20/7/2018 HAD REMANDED IDENTICAL ISSUE TO LD. CIT FOR FRESH CONSIDERATION. RESPECTFULLY FOLL OWING THE VIEW TAKEN BY COORDINATE BENCHES OF THIS TRIBUNAL IN ABOVE MENTIONED DECISIONS WE REMAND THE QUESTION OF GRANT OF APPROV AL UNDER SECTION 80 G (5) (VI) OF THE ACT TO LD.CIT (E) FOR FRESH CONSIDERATION THE LIGHT OF DECISIONS REFERRED TO HEREIN ABOVE. 6.2. WE ACCORDINGLY, SET ASIDE THE APPEAL TO LD.CIT(E) F OR ADJUDICATING IT AFRESH IN ACCORDANCE WITH LAW. NEED LESS TO SAY THAT, PROPER OPPORTUNITY OF BEING HEARD MUST BE GRA NTED TO ASSESSEE AS PER LAW. IN THE RESULT, APPEALS FILED BY ASSESSEE STANDS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST JUNE 2020 . SD/- SD/- (A.K GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01/06/2020 /VMS/ COPY TO: 1. ASSESSEE 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL. BANGALORE. PAGE 4 OF 4 ITA 77/BANG/2020 A. Y : 2019 20 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR 1-06-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1-06-2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -06-2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -06-2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -06-2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -06-2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -06-2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS