SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST, Ujjain V. THE CIT (Examption) Bhopal, Bhopal

ITA 887/Ind/2018

• Counselvise Citation: [2019] 113 COUNSELVISE.COM (IT) 6420 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 22-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Keywords: Opportunity of being heard; Set aside
• Section: 80G; 12AA

Judgement Text

SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST ITA NO. 887/IND/18 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HONBLE KUL BHARAT, JUDICIAL MEMBER AND HONBLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.887/IND/2018 REVENUE BY SMT. ASHIMA GUPTA, CIT ASSESSEE BY SHRI VENUS RAWKA , CA DATE OF HEARING 1 9 . 1 1 .2019 DATE OF PRONOUNCEMENT 2 1 . 1 1 .2019 O R D E R PER MANISH BORAD, AM THE ABOVE CAPTIONED APPEAL FILED AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDERS OF LD. COMM ISSIONER OF INCOME TAX (EXEMPTION) (IN SHORT LD.CIT(A)], BHOP AL DATED 28.9.2018. 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEALS ; SHREE JEENSHASHAN SEWA SHIKSHA SANSKAR SANKUL TRUST, 01 ABHYUDPURAM, BADNAGAR ROAD, UJJAIN VS. CIT(EXEMPTION) , BHOPAL (APPELLANT) (RESPONDENT ) PAN NO.AAMTS1801R SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST ITA NO. 887/IND/18 2 THE LEARNED CIT (E) ERRED IN REFUSING GRANT OF EXE MPTION UNDER SECTION 8OG (5)(VI) TO THE APPLICANT SINCE:- (1 )REASONABLE OPPORTUNITY HAS NOT BEEN PROVIDED BY LD. CIT BEING HEARD:- THE APPLICANT HAS NOT BEEN PROVIDED ANY OPPORTUNITY BY THE C.LT. EXEMPTION TO MAKE HIM AVAILABLE THE ADDITIONAL INFO RMATION REQUIRED BY HIM FOR CONSIDERATION OF APPLICATION. IN RESPONSE TO CIT (E) NOTICE DATED 7.8.2018 THEREB Y DIRECTING THE APPLICANT TO GIVE INFORMATION/DETAILS. IN RESPONSE, THE APPLI CANT FILED DETAILS WRITTEN SUBMISSION ON 27.08.2018 THEREBY PROVIDING ALL THE DETAILS AS DIRECTED BY THE CIT(E) VIDE THEIR LETTER DATED 7.8.2018. THEREA FTER, THE APPLICANT DID NOT RECEIVED ANY LETTER FROM DEPARTMENT, EITHER SEEKING ANY FURTHER INFORMATION / CLARIFICATION IN THE MATTER OR GIVING ANY PERSONAL HEARING IN THE MATTER. THE LEARNED C.LT.(E) PASSED ARBITRARILY THE IMPUGNE D ORDER WITH INCOMPLETE DETAILS WITHOUT PROVIDING ANY OPPORTUNIT Y FOR PERSONAL HEARING OR WITHOUT ASKING TO SUBMIT ANY SUPPLEMENTARY INFOR MATION REQUIRED IN THIS RESPECT. (2) THE ORDER PASSED IS BAD IN LAW AS NOT IN ACCORD ANCE WITH THE PROVISIONS OF LAW :-THE ARGUMENT OF C.LT.(E) IS THA T THE HUGE SURPLUS IS GENERATED BY THE SOCIETY EVERY YEAR AND FEE IS CHAR GED FROM STUDENT FOR EDUCATION SERVICES THEREFORE THERE IS NO JUSTIFICAT ION OR GENUINENESS SEEN TO SEEK EXEMPTION U/S 8 OG. THIS ARGUMENT IS NOT GOOD AND NOT IN CONFORMITY TO THE PROVISIONS OF INCOME TAX ACT, 1961. (3) THAT THE APPELLANT CARVE LEAVE FOR ANY ADDITION / .DELETION/ ALTERATION /MODIFICATION/AMENDMENT IN ALL OR ANY OF THE ABOVE GROUNDS OF APPEAL AT ANY TIME BEFORE THE COMPLETION OF HEARING. 3. BRIEF FACTS OF THE CASE AS CULLED OUT FROM THE R ECORDS ARE THAT THE ASSESSEE IS A TRUST INCORPORATED ON 03.10.2010 AND REGISTERED SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST ITA NO. 887/IND/18 3 U/S 12AA OF THE I.T. ACT VIDE ORDER DATED 01.06.201 6 ENGAGED IN SOCIAL, EDUCATION AND RELIGIOUS ACTIVITIES AT UJJAI N. THE ASSESSEE TRUST APPLIED FOR REGISTRATION U/S 80G OF THE I.T. ACT VIDE APPLICATION IN FORM 10G ON 26.03.2018. LD. CIT (EX EMPTION), BHOPAL REJECTED THE APPLICATION U/S 80G OF THE ACT ON 28.09.2018. 4. AGGRIEVED ASSESSEE IS NOW IN APPEAL BEFORE THE T RIBUNAL AGAINST THE ORDER OF CIT (EXEMPTION). 5. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE REQUE STED FOR SETTING ASIDE THE ISSUES TO THE FILE OF LD. CIT(EXE MPTION) FOR AFRESH ADJUDICATION ON THE GROUND THAT NO REASONABLE OPPOR TUNITY OF BEING HEARD WAS PROVIDED BY LD. CIT (EXEMPTION) FOR FURNI SHING VARIOUS DETAILS INCLUDING THE EVIDENCE REGARDING THE BENEF ICIARIES, DETAILS OF FEES STRUCTURE, COST ETC AND THIS OCCURRED SINCE LD . CIT (EXEMPTION) HAD TO PASS THE ORDER BEFORE THE STATUTORY DUE DATE OF DISPOSING OF THE ASSESSEES APPLICATION U/S 80G(5)(VI) OF THE AC T. 6. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE VEHEM ENTLY ARGUED SUPPORTING THE ORDER OF LD. CIT(EXEMPTION). SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST ITA NO. 887/IND/18 4 7. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. ASSESSEE IS AGGRIEVED WITH THE F INDING OF CIT (EXEMPTION), BHOPAL REJECTING THE ASSESSEES APPLIC ATION U/S 80G(5)(VI) OF THE ACT. WE OBSERVE THAT THE ASSESSE E TRUST ENJOYS THE REGISTRATION U/S 12AA OF THE ACT VIDE ORDER DATED 1 .6.2016. RUNNING OF THE TRUST FOR ATTAINING THE OBJECTS OF P ROVIDING OF SOCIAL, EDUCATION AND RELIGIOUS ACTIVITIES IS NOT DISPUTED SINCE REGISTRATION U/S 12AA OF THE ACT IS IN FORCE. THE APPLICATION F ORM 10G FOR APPROVAL U/S 80G(5)(VI) OF THE ACT MADE BY THE ASSE SSEE ON 26.3.2018 WAS REJECTED VIDE ORDER DATED 28.09.2018. THROUGH OFFICE OF LD. CIT (EXEMPTION) QUESTIONNAIRE DATED 7 .8.2018 WAS ISSUED SEEKING INFORMATION AND OTHER RELATED DOCUME NTS TO BE FURNISHED BY 21.8.2018. THE COMPLIANCE WAS MADE BY THE ASSESSEE SUBMITTING THE REPLY ON 21.8.2018. POST SUBMISSION OF THE DOCUMENTS AND BEFORE REJECTING THE APPLICATION VIDE ORDER DATED 28.9.2018 NO CLARIFICATION OR EXPLANATION WAS SOUGH T FROM THE ASSESSEE TRUST. THOUGH LD. CIT (EXEMPTION) DISCUSS ED ABOUT THE FEES STRUCTURE, COST INCURRED AND BENEFICIARIES OF TRUST BEING NOT PRODUCED THE FACT REMAINS THAT NO SUCH OPPORTUNITY WAS PROVIDED TO THE ASSESSEE TRUST TO MAKE NECESSARY COMPLIANCE. THE SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST ITA NO. 887/IND/18 5 OBSERVATION OF THE CIT (EXEMPTION) THAT THE TRUST IS HAVING SUBSTANTIAL RECEIPTS AS REFLECTED IN THE ACCOUNTS A ND ALSO GENERATING HUGE SURPLUS EVERY YEAR AND THE TRUST HAS ALSO MADE SUBSTANTIAL AMOUNT ON BANK DEPOSITS IN BANKS CANNOT BE ONE OF THE BASIS TO REJECT THE APPLICATION U/S 80G OF THE ACT. 8. IN THESE GIVEN FACTS AND CIRCUMSTANCES OF THE CA SE AND IN VIEW OF OUR DISCUSSION ABOVE AND IN THE INTEREST OF JUST ICE WE ARE OF THE CONSIDERED VIEW THAT AS THE LD. CIT(EXEMPTION) FAIL ED TO PROVIDE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE TRUST IN ORDER TO FURNISH VARIOUS DETAILS CALLED FOR, ALL THE ISSU ES RAISED IN THIS APPEAL RELATING TO APPROVAL OF APPLICATION U/S 80G( 5)(VI) OF THE ACT NEEDS TO BE SET ASIDE TO THE FILE OF CIT(EXEMPTION) FOR AFRESH ADJUDICATION. NEEDLESS TO MENTION THAT PROPER OPPO RTUNITY OF BEING HEARD SHOULD BE PROVIDED TO THE ASSESSEE THIS TIME AND ASSESSEE TRUST IS ALSO DIRECTED TO MAKE NECESSARY COMPLIANCE AS AND WHEN CALLED BY LD. CIT(EXEMPTION). 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST ITA NO. 887/IND/18 6 THE ORDER PRONOUNCED IN THE OPEN COURT ON 21.11.20 19. SD/- SD/- ( KUL BHARAT) (MANISH BOR AD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 21 NOVEMBER, 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE