M/S. LIONS CLUB ASHOKNAGAR CHARITABLE TRUST,MANGALORE vs. THE COMMISSIONER OF INCOME TAX(EXEMPTIONS), BANGALORE

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ITA 2463/BANG/2019Status: DisposedITAT Bangalore14 February 2020AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the order passed by the CIT(Exemptions) was without granting a proper opportunity to the assessee. The application for registration needs to be reconsidered by the CIT(Exemptions) after providing the assessee with due opportunity.

What were the facts?

The assessee trust applied for registration under section 12AA of the Income Tax Act. The CIT(Exemptions) issued a notice for clarification, but it was returned unserved due to an insufficient address.

What were the issues?

Whether the denial of registration under Section 12AA was valid when the notice for clarification was not served on the assessee due to an insufficient address, thereby denying an opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE

Before: SHRI. A. K. GARODIA & SMT. BEENA PILLAI

For Appellant: Shri. Narendra Sharma, Advocate
For Respondent: Mr. Muzaffar Hussain, CIT – DR

ORDER

PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against order dated 25/10/2019 passed by Ld. CIT (exemptions), Bangalore denying registration under section 12AA of the Act.

2.

Ld. AR submitted that, application in form 10 A was filed on 30/04/2019 before Ld. CIT (Exemptions), seeking registration under section 12AA of the Act, wherein address for communication was mentioned to be: M/s Lions Club Asoka Nagar charitable trust (RE GD) door No. 1-for-143/3, Rajashree Malemar Road, Asoka Nagar Derbali, Mangalore, 575 006.

1.

Page 2 of 3 ITA 2463/Bang/2019 3. He submitted that thereafter assessee received impugned order dated 25/10/2019 wherein, it was stated that Ld. CIT(E) issued letter dated 21/09/2019 calling for details/clarifications to be filed by 25 October 2019 with regards to certain objects mentioned in the trust deed. Ld. AR submitted that said notice issued by Ld. CIT (E) was never served upon assessee as Ld. CIT(E) himself records in impugned order that notice dated 21/09/2019 was returned unserved with remark of postal authorities as “insufficient address”.

4.

Ld. AR submitted that order passed by Ld. CIT(E) is without granting due opportunity to assessee of being represented as per law. Ld. CIT-DR submitted that issue may be sent back to Ld. CIT (E) for reconsidering application filed by assessee.

5.

Considering submissions of Ld. CIT-DR, we are of considered opinion that, application filed by assessee for any registration under section 12AA of the Act needs to be reconsidered by Ld. CIT(E). Needless to say, that proper opportunity of being represented shall be granted to assessee in accordance with law. Ld.CIT(E) shall pass detailed order considering submissions/evidences filed by assessee as per law. Accordingly, grounds raised

by assessee stands allowed for statistical purposes. In the result, appeal filed by assessee stands allowed for statistical purposes. Order pronounced in the open court on 14th February, 2020. Sd/- Sd/- (A. K. GARODIA) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 14th February, 2020. /MK/ Page 3 of 3 ITA 2463/Bang/2019 Copy to:

1. Appellant 4. CIT(A) 2. Respondent 5. DR, ITAT, Bangalore 3. CIT

6. Guard file By order Assistant Registrar, Income Tax Appellate Tribunal. Bangalore.

Date Initial 1. Draft dictated on On Dragon Sr.PS 2. Draft placed before author 13-02-2020 Sr.PS 3. Draft proposed & placed before JM/AM the second member 4. Draft discussed/approved by JM/AM Second Member.

5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading the order on Sr.PS Website 8. If not uploaded, furnish the -- Sr.PS reason 9. File sent to the Bench Clerk Sr.PS 10. Date on which file goes to the AR Date on which file goes to the 11. Head Clerk.

12.

Date of dispatch of Order.

13.

Draft dictation sheets are No Sr.PS attached

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