All India Trithendra Sutiji Jain Sangh , Bangalore V. Commissioner of Income TAx (EXemptions) , Bangalore

ITA 807/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5882 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 15-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C H SUNDAR RAO C IT DR I
• Assessee Lawyers: H N KHINCHA
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO S . 806 AND 807 / BANG/201 8 ASSESSMENT YEAR : M/S. ALL INDIA TRITHENDRA SURIJI JAIN SANGH, 1 ST FLOOR, SHARMA COMPLEX, D. S. LANE, CHICKPET, BENGALURU 560 053. PAN : AAGTA 0500 R VS. THE INCOME TAX OFFICER (EXEMPTIONS), WARD-1, BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI. H. N. KHINCHA, CA REVENUE BY : SHRI. C. H. SUNDAR RAO , CIT - DR - I DATE OF HEARING : 26 . 06 .201 8 DATE OF PRONOUNCEMENT : 28 . 06 .201 8 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THESE APPLES ARE PREFERRED BY THE ASSESSEE AGAINST THE RESPECTIVE ORDERS OF THE CIT(E) DENYING REGISTRATION UNDER SECTION 12AA AND RECOGNITION UNDER SECTION 80G(5)(VI) OF THE INCOME TAX ACT. SINCE COMMON GROUNDS ARE RAISED, THESE APPEALS WERE HEARD TOGETHER AND ARE DISPOSED OFF THROUGH THIS CONSOLIDATED ORDER. GROUNDS RAISED IN THESE APPEALS ARE AS UNDER: ITA NOS. 806 AND 807/BANG/2018 PAGE 2 OF 4 GROUNDS OF APPEAL IN ITA NO.806/BANG/2018 1. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS ERRED IN PASSING THE IMPUGNED ORDER IN THE MANNER PASSED BY HIM. THE ORDER PASSED BEING BAD IN LAW, AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND EQUITY AND IS LIABLE TO BE QUASHED. 2.1 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS ERRED IN REJECTING THE APPLICATION FILED FOR REGISTRATION U/S 12AA OF THE I.T. ACT, 1961 ON THE GROUND THAT THE GENUINENESS OF THE OBJECTS AND ACTIVITIES OF THE APPELLANT COULD NOT BE VERIFIED AS THE APPELLANT HAS NOT COMPLIED WITH THE NOTICES ISSUED. THE ORDER PASSED WITHOUT GIVING AN OPPORTUNITY OF BEING HEARD BECOMES BAD IN LAW AND IS LIABLE TO BE QUASHED. 2.2 THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS ERRED IN REJECTING THE APPLICATION FILED FOR REGISTRATION U/S. 12AA OF THE I.T. ACT, 1961, ON THE GROUND THAT THE APPELLANT HAS NOT FURNISHED DOCUMENTARY EVIDENCE TO SHOW THE GENUINENESS OF THE TRUST. THE CONCLUSION DRAWN BEING TOTALLY ERRONEOUS, CONTRARY TO FACTS AND LAW APPLICABLE IS TO BE DISREGARDED. 2.3 THE APPELLANT IS A GENUINE TRUST AND HAS COMPLIED TOTALLY WITH THE PROVISIONS OF LAW TO ENABLE ITSELF TO GET THE REGISTRATION U/S. I2AA OF THE I.T. ACT, 1961. THEREFORE, THE REJECTION OF APPLICATION FILED BY THE APPELLANT ON A TOTALLY ERRONEOUS APPRECIATION OF FACTS AND THE LAW IS TO BE QUASHED. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, -THE APPELLANT IS ELIGIBLE FOR THE REGISTRATION U/S. 12AA OF THE I.T. ACT, 1961 AND SAME IS TO BE GRANTED TO IT. 4. IN VIEW OF THE ABOVE AND ON OTHER GROUNDS TO BE ADDUCED AT THE TIME. OF HEARING, IT IS REQUESTED THAT THE IMPUGNED ORDER PASSED BE QUASHED AND THE APPELLANT BE GRANTED THE REGISTRATION U/S. 12AA OF THE I.T. ACT, 1961 AS APPLIED FOR. GROUNDS OF APPEAL IN ITA NO.807/BANG/2018 1. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS ERRED IN PASSING THE IMPUGNED ORDER IN THE MANNER PASSED BY HIM. THE ORDER PASSED BEING BAD IN LAW, AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND EQUITY AND IS LIABLE TO BE QUASHED. 2. WITHOUT FURTHER PREJUDICE THE LEARNED COMMISSIONER OF INCOME-TAX, (EXEMPTIONS) HAS ERRED IN REJECTING THE APPLICATION FILED BY THE APPELLANT FOR RECOGNITION U/S. 80G OF THE ACT, BY HOLDING THAT THE APPLICATION SEEKING REGISTRATION U/S. 12A OF THE ACT HAS BEEN REJECTED AND HENCE THE APPELLANT WOULD NOT BE ELIGIBLE FOR RECOGNITION U/S. 80G OF THE ACT. THE CONCLUSIONS DRAWN BY COMMISSIONER OF INCOME-TAX, (EXEMPTIONS) ARE NOT IN ACCORDANCE WITH LAW AND ARE TO BE DISREGARDED IN TOTO. ITA NOS. 806 AND 807/BANG/2018 PAGE 3 OF 4 3. THE OBJECTS AND ACTIVITIES OF THE APPELLANT BEING CHARITABLE IN NATURE, THE APPELLANT IS ENTITLED FOR RECOGNITION U/S. 80G OF THE ACT. 3.2 THE COMMISSIONER OF INCOME-TAX, (EXEMPTIONS), HAS ERRED IN NOT PROPERLY APPRECIATING THE FACTS OF THE CASE. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE LAW APPLICABLE THE APPELLANT HAVING COMPLIED WITH ALL STATUTORY REQUIREMENTS IS ENTITLED TO BE RECOGNIZED U/S. 80G OF THE 1.T. ACT. AND THE RECOGNITION AS PRAYED FOR IS TO BE ALLOWED TO THE APPELLANT. 4. IN VIEW OF THE ABOVE AND ON OTHER GROUNDS TO BE ADDUCED AT THE TIME OF HEARING, IT IS REQUESTED THAT THE IMPUGNED ORDER BE QUASHED OR ATLEAST THE APPELLANT BE GRANTED THE 'RECOGNITION U/S.80G OF THE I.T. ACT, 1961 AS PRAYED FOR. 2. WITH REGARD TO APPEAL NO.806/BANG/2017 THROUGH WHICH DENIAL OF REGISTRATION UNDER SECTION 12AA IS CHALLENGED, THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THOUGH THE ASSESSEE HAS FILED THE REQUISITE INFORMATION BEFORE THE CIT, BUT HE DID NOT TAKE COGNIZANCE OF THE SAME AND REJECTED THE REQUEST FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS PLACED A COPY OF REPLY ALONG WITH THE REQUISITE DOCUMENTS FILED BEFORE THE CIT IN RESPONSE TO HIS LETTER, BUT THE CIT DID NOT LOOK INTO THE DOCUMENTS AND REJECTED THE REGISTRATION. THE LEARNED DR PLACED RELIANCE UPON THE ORDER OF THE CIT. 3. HAVING CAREFULLY EXAMINED THE DOCUMENTS PLACED BEFORE US, WE ARE OF THE VIEW THAT THE CIT HAS REJECTED THE REGISTRATION WITHOUT VERIFYING OR EXAMINING THE DOCUMENTS FILED BY THE ASSESSEE IN RESPONSE TO QUERY RAISED BY THE CIT. THEREFORE, THESE DOCUMENTS ARE REQUIRED TO BE PROPERLY EXAMINED BY THE CIT. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO READJUDICATE THE ISSUE OF GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT IN THE LIGHT OF THE EVIDENCES FILED BEFORE HIM, AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. CONSEQUENT TO THE DENIAL OF REGISTRATION UNDER SECTION 12AA, THE CIT HAS ALSO REJECTED THE APPLICATION FOR RECOGNITION UNDER SECTION 80G(5)(VI) OF THE ACT. SINCE WE ITA NOS. 806 AND 807/BANG/2018 PAGE 4 OF 4 HAVE ALREADY SET ASIDE THE ORDER OF THE CIT DENYING REGISTRATION UNDER SECTION 12AA AND RESTORED THE MATTER TO THE CIT FOR READJUDICATION, THE ORDER OF THE CIT DENYING RECOGNITION UNDER SECTION 80G(5)(VI) DESERVES TO BE SET ASIDE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT DENYING REGISTRATION UNDER SECTION 80G(5)(VI) OF THE ACT AND RESTORE THE MATTER TO HIS FILE TO READJUDICATE THE ISSUE OF GRANT OF RECOGNITION UNDER SECTION 80G AGAIN IN THE LIGHT OF FATE OF THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. ACCORDINGLY, BOTH THE ORDERS OF CIT ARE SET ASIDE AND MATTERS RESTORED TO HIS FILE FOR READJUDICATION IN TERMS INDICATED ABOVE. 4. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 28 TH JUNE, 2018. SD/- SD/- BANGALORE. DATED: 28 TH JUNE, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE. ( A. K. GARODIA ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER