Navpravartan Shiksha Samiti, Raisen V. The CIT Exemption, Bhopal

ITA 962/Ind/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7157 (ITAT-INDORE)
• Duration Of Justice: 9 month(s) 11 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: 2018-2019
• Appeal Filed On: 26-11-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Assessee Lawyers: SANDEEP DESHPANDE
• Keywords: Opportunity of being heard; Set aside

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.962/IND/2019 APPELLANT BY SHRI SANDEEP DESHPANDE , 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 18.09.2019. THE ASSESS EE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL; NAVPRAVARTAN S H IK SHA SAMITI, 17 MUKHERJI NAGAR, RAISEN M.P VS. CIT (EXEMPTION) BHOPAL (APPELLANT) (REVENUE ) PAN A A BAN3258P ITA NO.962/IND/2019 NAVPRAVARTAN SHIKSHA SAMITI 2 1. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE ASSESSING AUTHORITY BEING CIT(E} BHOPAL, BE HELD TO HAVE GROS SLY ERRED IN REJECTING THE APPLICATION OF THE ASSESSEE SUBMITTED IN FORM 5 6D ON 30/09/2018. SEEKING APPROVAL U/S 10(23C)(VI} ON VARIOUS GROUNDS STATED BY HIM. 2. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE ASSESSING AUTHORITY BE HELD TO HAVE GROSSLY ERRED IN NOT PROV IDING AN EXTENDED DATE OF HEARING, EVEN AFTER AN ADJOURNMENT LETTER WAS SU BMITTED BY THE COUNSEL OF THE ASSESSEE BY 12/09/2019 AND PASSING THE ORDER ON 18/09/2019 ITSELF, ON GROUNDS THAT THE CASE WOULD HAVE BEEN BA RRED BY LIMITATION ON 30/09/2019. 3. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE ASSESSING AUTHORITY BE HELD TO HAVE NOT CONSIDERED THE MATERI AL ALREADY ON RECORD WITH THE DEPARTMENT NAMELY THE VARIOUS INCOME TAX R ETURNS REGULARLY FILED FROM A.Y.2010-11 ONWARDS AND ALL THE DOCUMENTS ENCL OSED WITH FORM 56D INCLUDING FINANCIAL STATEMENTS FOR THE PAST THREE Y EARS ETC., IN ARRIVING AT THEIR CONCLUSION AND REJECTING THE APPLICATION. 4. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE ASSESSING AUTHORITY BE HELD TO HAVE GROSSLY ERRED IN OVERLOOK ING THE PRINCIPAL TENETS LAID DOWN BY CIRCULAR NO. 14/2015 F.NO. 197/38/2015 ITA-I. SINCE, IT WAS ALREADY ESTABLISHED THAT, THE INSTITUTION EXIST ED SOLELY FOR EDUCATIONAL PURPOSES AND HAS BEEN ACTIVE IN THE FIELD FOR LAST MORE THAN 15 YEARS AND ITS FINANCIAL STATEMENTS AS WELL AS ITR'S AND OTHER DOCUMENTS WERE ALREADY ON RECORD, PROVING BEYOND DOUBT ITS GENUINE NESS AND CREDIBILITY. 3. BRIEF FACTS OF THE CASE ARE THAT THE APPELLANT I S A REGISTERED SOCIETY WITH ITS PRIMARY PURPOSE BEING EDUCATIONAL ACTIVITIES AND ANY OTHER ACTIVITIES ALLIED TO THE PRIMARY ACTIVITY AND HAD FILED AN APPLICATION FOR APPROVAL U/S 10(23C)(VI) OF THE I.T ACT LD. ITA NO.962/IND/2019 NAVPRAVARTAN SHIKSHA SAMITI 3 CIT(EXEMPTION), BHOPAL REJECTED THE ASSESSEES APPL ICATION SUBMITTED ON FORM 66D FOR APPROVAL U/S 10(23C)(VI) OF THE ACT FOR TWO REASONS NAMELY FOR NON APPEARANCE ON THE DATE O F HEARING AND SECONDLY FOR NOT PROVIDING BYE-LAWS OF THE SOCIETY SHOWING THE OBJECTS AND ACTIVITIES TO BE CARRIED OUT. 4. NOW THE AGGRIEVED ASSESSEE IS IN APPEAL WITH TH E TRIBUNAL. 5. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(A) DID NOT ALLOW PROPER OPPORTUNITY OF BEING HEARD. THE CA SE WAS FIXED ON 12.09.2019 AND THE MAIN PERSON RESPONSIBLE FOR LOOK ING FOR THE LEGAL AND FINANCIAL MATTERS OF SOCIETY WAS SEVERELY ILL DURING THAT TIME, THEREFORE HE WAS UNABLE TO ATTEND THE AFFAIRS OF THE ASSESSEE SOCIETY. IN SUPPORT OF THE SUBMISSION LD. COUNSEL F OR THE ASSESSEE FILED MEDICAL CERTIFICATE IN PAPER BOOK. THEREFORE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT LD. CIT(EXEMPTION) WAS NOT JUSTIFIED IN NOT ALLOWING SUFFICIENT OPPORTUNITY OF BEING HEARD AND ACCORDINGLY REJECTING THE APPLICATION. 6. LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF LD. CIT(EXEMPTION). ITA NO.962/IND/2019 NAVPRAVARTAN SHIKSHA SAMITI 4 7. IN VIEW OF ABOVE FACTS, THE SUBMISSION OF THE LD . COUNSEL FOR THE ASSESSEE AND THE MEDICAL CERTIFICATE FILED IN T HE 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 PASS THE ORDER CONSIDERING THE RELEVANT DOCUMENTS FILED IN PAPER BOOK. THE ASSESSEE IS DIRE CTED TO COOPERATE IN THE MATTER BY FILING FURTHER EVIDENCE, IF ANY, IN SUPPORT OF THE CLAIM. THUS WE DIRECT LD. CIT(EXEMPTION) TO DENOVO EXAMINE THE ASSESSEES APPLICATION MADE IN FORM 56D FOR APP ROVAL U/S 10(23C)(VI) OF THE ACT IN TERMS INDICATED HEREIN AB OVE AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 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 ITA NO.962/IND/2019 NAVPRAVARTAN SHIKSHA SAMITI 5 COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE