NNF-State Chapter, Hyd, Secunderabad V. DIT(E), Hyd, Hyderabad

ITA 791/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98489 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 09-06-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KONDA RAMESH
• Assessee Lawyers: M V ANIL KUMAR
• Section: 80G; 12AA

Judgement Text

ITA NO.791 OF 2015 NNF STATE CHAPTER HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.791/HYD/2015 (ASSESSMENT YEAR: 2014-15) NNF - STATE CHAPTER HYDERABAD PAN: AAATN 9497 Q VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI M.V. ANIL KUMAR FOR REVENUE : SHRI KONDA RAMESH, DR DATE OF HEARING : 1 0 .09 .2015 DATE OF PRONOUNCEMENT : 18 .09. 2015 O R D E R PER SMT.P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2014-15. IN THIS APPEAL, ASSESSEE IS AGGRIEVED BY THE ORDER OF THE D IT (EXEMPTION) IN NOT ALLOWING THE REGISTRATION U/S 12AA OF THE AC T AND ALSO DENYING APPROVAL U/S 80G OF THE I.T. ACT WITHOUT GI VING REASONABLE OPPORTUNITY OF HEARING. 2. BRIEF FACTS OF THE CASE ARE, ASSESSEE, A SOCIETY , HAS FILED AN APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT ON 29.03.2014. THE DIT (E) ISSUED A QUESTIONNAIRE VIDE LETTER DATE D 02.07.2014 REQUESTING THE ASSESSEE TO PRODUCE ORIGINAL MEMORAN DUM OF ASSOCIATION FOR VERIFICATION AND ALSO FURNISH DETAI LS ON THE SPECIFIC POINTS RAISED THEREIN. THE CASE WAS POSTED FOR HEARING ON 21.07.2014 THROUGH A NOTICE WHICH WAS RETURNED UNSE RVED BY ITA NO.791 OF 2015 NNF STATE CHAPTER HYDERABAD PAGE 2 OF 4 THE POSTAL AUTHORITIES WITH THE COMMENT UNCLAIMED FOR 7 DAYS. ANOTHER NOTICE WAS ISSUED ON 28.07.2014 FIXING THE DATE OF HEARING AS 11.08.2014. THIS NOTICE WAS ALSO RETURNE D UNSERVED WITH THE COMMENT UNCLAIMED FOR 7 DAYS. IN VIEW OF THESE CIRCUMSTANCES, THE DIT (E) HELD THAT THE GENUINENES S OF EXISTENCE OF THE SOCIETY AND ALSO ITS OBJECTIVES AN D ACTIVITIES COULD NOT BE VERIFIED. HE THEREFORE, DENIED THE REG ISTRATION U/S 12AA OF THE ACT AND ALSO APPROVAL U/S 80G OF THE I. T. ACT. AGGRIEVED BY THE SAID ORDER OF THE DIT (E), THE ASS ESSEE IS IN APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE IS A SOCIETY FORMED BY A GROUP OF DOCTORS FOR THE AIMS AND OBJECTIVES ENUMERATED IN ITS MEMORANDUM OF ASSO CIATION, SUCH AS TO ENCOURAGE AND ADVANCE THE KNOWLEDGE, STU DY AND PRACTICE OF THE SCOEICE OF NEONATOLOGY BY PROVIDING FACILITIES TO SCHOLARS AND FOR THE STUDY OF OR RESEARCH IN THE SA ID SUBJECTS BY WAY OF SCHOLARSHIPS, FELLOWSHIPS GRANTS AND ENDOWME NTS ETC. HE SUBMITTED THAT THE ASSESSEE IS VERY MUCH IN EXISTEN CE BUT UNFORTUNATELY THE NOTICES SENT BY THE DIT (E) HAVE BEEN RETURNED UNSERVED. HE SUBMITTED THAT THE FAILURE ON THE PART OF THE ASSESSEE TO APPEAR BEFORE THE DIT (E) ON THE DATES OF HEARING FIXED BY THE DIT (E) IS NOT INTENTIONAL OR WILFUL, BUT WAS DUE TO CIRCUMSTANCES BEYOND ITS CONTROL. HE SUBMITTED THAT THE ASSESSEE IS CARRYING ON CHARITABLE ACTIVITIES AND A S SUCH IS ELIGIBLE FOR REGISTRATION U/S 12AA AS WELL AS APPRO VAL U/S 80G OF THE ACT. HE PRAYED THAT THE DIT (E) MAY BE DIRECTED TO RECONSIDER THE ASSESSEES APPLICATION ON MERITS. ITA NO.791 OF 2015 NNF STATE CHAPTER HYDERABAD PAGE 3 OF 4 4. THE LEARNED DR, HOWEVER, OBJECTED TO THE REMAND OF THE ISSUE STATING THAT THE ASSESSEE HAS FAILED TO PRESE NT ITSELF AND PRESENT ITS CASE BEFORE THE DIT (E) INSPITE OF THE OPPORTUNITIES GIVEN TO THE ASSESSEE AND HENCE THE ORDER OF THE DI T (E) NEEDS NO INTERFERENCE. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT IT IS NOT THE CASE WHERE THE A SSESSEE IS IN RECEIPT OF THE NOTICES AND HAS NOT APPEARED BEFORE THE DIT (E). IN THE CASE BEFORE US, BOTH THE NOTICES SENT BY THE DI T (E) WERE RETURNED UNSERVED. THE DIT (E) HAS NOT DECIDED THE MERITS OF THE ELIGIBILITY OF THE ASSESSEE FOR GRANT OF REGISTRATI ON U/S 12AA OR APPROVAL U/S 80G OF THE ACT. IN VIEW OF THE SAME, W E ARE INCLINED TO SET ASIDE THE ISSUE TO THE FILE OF THE DIT (E) WITH A DIRECTION TO ADJUDICATE THE ISSUE IN ACCORDANCE WITH LAW AFTER G IVING FAIR OPPORTUNITY OF HEARING TO THE ASSESSEE. ASSESSEE SH ALL ALSO COOPERATE WITH THE DIT (E) BY PUTTING IN APPEARANCE AND FURNISHING ALL THE RELEVANT OR REQUIRED DATA BEFORE THE DIT (E) AS AND WHEN CALLED FOR. 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS P ARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH SEPTEMBER, 2015. S D/ - S D/ - (B. RAMAKOTAIAH) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 18 TH SEPTEMBER, 2015. ITA NO.791 OF 2015 NNF STATE CHAPTER HYDERABAD PAGE 4 OF 4 VNODAN/SPS COPY TO: 1. M. ANANDAM & CO. CA, 7A, SURYA TOWERS, SP ROAD, SECUNDERABAD 500003 2. DIRECTOR OF INCOME TAX (EXEMPTIONS), HYDERABAD 3. DY. DIRECTOR OF INCOME TAX (E)-II HYDERABAD 4. THE DR, ITAT, HYDERABAD 5. GUARD FILE BY ORDER