Shri Rishabh Motilai Jain Shwetamber Trust, Dhar V. CIT Exemption , Bhopal

ITA 903/Ind/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7151 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 04-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Keywords: Charitable institution; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.903/IND/2019 APPELLANT BY SHRI RAJESH MEHTA, CA REVENUE BY SMT. ASHIMA GUPTA, CIT DATE OF HEARING 01.09 .2020 DATE OF PRONOUNCEMENT 07 .09 .2020 O R D E R PER MANISH BORAD, AM. THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(EXEMPTION), BHOPAL DATED 30.08.2019. THE ASSESS EE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL; SHRI RISHABDEV MOTILAL JAIN SHWETAMBAR TRUST, 154 JAWAHAR MARG, RAJGARH, DHAR VS. CIT (EXEMPTION) BHOPAL (APPELLANT) (REVENUE ) PAN A A MTS5941A ITA NO.903/IND/2019 RISHABDEV MOTILAL JAIN SHWETAMBAR TRUST 2 L. THAT THE ORDER PASSED U/S 12AA(1)(B)(II) OF THE ACT IS ARBITRARY, ILLEGAL, WRONG, UNLAWFUL, BAD IN LAW AND AGAINST THE FACTS O F THE CASE HENCE REGISTRATION U/S 12AA MAY KINDLY BE GRANTED. 2. THAT THE LD. CIT EXEMPTION, BHOPAL ERRED TO REJECT THE APPLICATION SEEKING REGISTRATION U/S 12AA OF THE IT ACT,. 1961, MISINTE RPRETING VARIOUS FACTS WHICH ARE CLERICAL IN NATURE AND ARE DULY EXPLAINAB LE. THEREFORE, REJECTING THE APPLICATION ON SUCH VAGUE GROUNDS IS BAD IN LAW AND ON FACTS. 3. THAT THE LD. CIT EXEMPTION, BHOPAL ERRED TO NOT PRO VIDED PROPER OPPORTUNITY OF BEING HEARD WHICH IS AGAINST THE PRI NCIPLE OF NATURAL JUSTICE AND THEREFORE THE ORDER PASSED DATED 30.08.2019 IS BAD IN LAW. 4. THAT, THE APPELLANT, CRAVES LEAVE TO ADD, AMEND OR MODIFY ANY OF THE GROUNDS OF THE APPEAL. 3. BRIEF FACTS OF THE CASE ARE THAT THE APPELLANT I S A RELIGIOUS CUM CHARITABLE TRUST AND HAD APPLIED FOR REGISTRATION U /S 12AA (1)(AB) OF THE ACT HOWEVER THE LD. CIT(EXEMPTION), BHOPAL REJ ECTED THE APPLICATION ON THE GROUND THAT THE ASSESSEE FAILED TO FURNISH CLARIFICATION ON THE INFIRMITIES NOTICED BY LD. CIT (EXEMPTION) AND ALSO FOR THE ASSESSEE FAILING TO FILE NECESSARY DOC UMENTARY EVIDENCE IN RESPONSE TO THE LETTER ISSUED BY LD. CIT(EXEMPTI ON). 4. NOW THE AGGRIEVED ASSESSEE IS IN APPEAL WITH THE TRIBUNAL. 5. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(A) DID ITA NO.903/IND/2019 RISHABDEV MOTILAL JAIN SHWETAMBAR TRUST 3 NOT ALLOW PROPER OPPORTUNITY OF BEING HEARD AND ALS O FOR REMOVING DEFECTS AS SOUGHT FOR BY LD. CIT(EXEMPTION). LD. C OUNSEL FOR THE ASSESSEE ALSO FILED PAPER BOOK ENCLOSING WRITTEN SU BMISSION AND RELEVANT DOCUMENTS IN SUPPORT OF THE CLAIM. LD. COU NSEL FOR THE ASSESSEE PRAYED FOR PROVIDING ONE MORE OPPORTUNITY TO GO BEFORE LD. CIT (EXEMPTION) FOR FILING NECESSARY DOCUMENTARY EV IDENCE AND MAKE NECESSARY REPLIES TO THE CLARIFICATION SOUGHT. 6. LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF LD. CIT(EXEMPTION). 7. WE HAVE HEARD RIVAL CONTENTIONS AND CAREFULLY GO NE THROUGH THE WRITTEN SUBMISSION AND RELEVANT PAPERS FILED IN PAPER BOOK. WE ARE OF THE VIEW THAT IT WOULD BE IN THE INTEREST OF JUSTICE AND FAIR PLAY, IF ONE MORE OPPORTUNITY OF BEING HEARD IS GRA NTED TO THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER OF TH E LD. CIT(EXEMPTION) AND RESTORE THE MATTER BACK TO THE F ILE OF THE LD. CIT(EXEMPTION) WHO SHALL DENOVO EXAMINE THE APPLICATION OF THE ASSESSEE GIVEN IN FORM 10A FOR REGISTRATION U/S 12AA OF THE ACT AFTER CONSIDERING THE WRITTEN SUBMISSION AND RELEV ANT DOCUMENTS FILED IN PAPER BOOK. THE ASSESSEE IS DIRECTED TO CO OPERATE IN THE ITA NO.903/IND/2019 RISHABDEV MOTILAL JAIN SHWETAMBAR TRUST 4 MATTER BY FILING FURTHER EVIDENCE, IF ANY, IN SUPPO RT OF THE CLAIM. 8. IN RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES ONLY. THE ORDER PRONOUNCED IN THE OPEN COURT ON 07 .09.2020. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 7 TH SEPTEMBER, 2020 /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